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TMI Blog2013 (1) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... per section 132(4) and when there is incriminating admission against himself, then it is required to be examined with due care and caution. As decided in Kailashben Manharlal Chokshi case (2008 (9) TMI 525 - GUJARAT HIGH COURT), that retracted statement recorded under section 132(4) cannot be the basis for assessing undisclosed income of the assessee and found the explanation given by the assessee to be more convincing and that was not considered by the authorities below. Here in this case also, no specific reason has been given for rejection of the assessee's contention by which the assessee has retracted from his admission - None of the authorities gave any reason as to why AO did not proceed further to enquire into the undisclosed incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mulated with respect to applicability of proviso to section 132(4), which came into force with effect from 1.4.1989, by Explanation it has been declared that examination of any person under subsection (4) of section 132 may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under the Indian Income Tax Act, 1961, learned counsel for the assessee submitted irrespective of insertion of proviso, assuming for the sake of argument that there was statement under section 132(4) of the Act of 1961, even then such statement alone without corroborative evidence cannot fasten any liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search in the business premises of the petitioner's firm as well as in the residential premises of its partner, Shri Sheo Kumar Kejriwal, on 24th September, 1987. During the course of search, the statement of Shri Sheo Kumar Kejriwal had been recorded under section 132(4) of the Income Tax Act and in the statement, he stated that he was partner in the Ganesh Trading Company, i.e. the present assessee firm in his individual status and that he surrendered Rs.20 lacs for the assessment year 198889 as income, on which tax would be paid. He further stated that other partners would agree to the same; otherwise it would be his personal liability. However, in the returns filed after search, the income of Rs.20 lacs surrendered by Shri Sheo Kumar Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The statement on oath of the assessee is a piece of evidence as per section 132(4) of the Income Tax Act and when there is incriminating admission against himself, then it is required to be examined with due care and caution. In the judgment of Kailashben Manharlal Chokshi (supra), the Division Bench of Gujarat High Court has considered the issue in the facts of that case and found the explanation given by the assessee to be more convincing and that was not considered by the authorities below. Here in this case also, no specific reason has been given for rejection of the assessee's contention by which the assessee has retracted from his admission. None of the authorities gave any reason as to why Assessing Officer did not proceed fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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