9911796707
TMI Blog2015 (2) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A)') as well as the assessment orders. During a survey, under Section 133A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on the business premises of M/s Oscar Remedies Pvt. Ltd., on 18.01.2006, the assessee who is admittedly a Director, declared additional income of Rs. 30 lacs relatable to unaccounted investment towards construction of the premises of M/s Oscar Remedies Pvt. Ltd. This apart, the assessee declared an additional amount of Rs. 50 lacs attributable to excess cash, unaccounted investment in building and unaccounted investment in machinery relating to the company. After the survey, the assessee filed a return on 31.03.2007 declaring an income of Rs. 1,99,872/-. The return was processed and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after addressed a letter dated 19.01.2006 making further admissions. The assessee retracted these admissions, on 04.12.2008 almost two years after the admissions and then also a few weeks before the passing of the assessment order on 26.12.2008. The retractions being highly belated and without reference to any material that could raise an inference that the statements were coerced or made under pressure, the statements have been rightly relied by the revenue while making additions. Counsel for the revenue also submits that general allegations of coercion or pressure, cannot enure to the benefit of an assessee particularly where the retraction is belated. We have heard counsel for the parties, perused the impugned orders. A survey under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 30,00,000/- as additional income for Financial Year 2005-06 as my income. The amount was used for construction of factory building. This surrender has been made voluntarily subject to no penal action." The assessee filed a return of income, for assessment year 2006-07 without reflecting the additional income of Rs. 30 lacs admitted in his statement dated 18.01.2006 and letter dated 19.01.2006. The assessing officer, therefore, asked the assessee to explain this discrepancy in the return. The assessee filed a reply on 04.12.2006 retracting the admissions. The retractions read as follows: - "3. The statement of the assessee allegedly available on record was obtained employing coercion by the survey team and does not relate to the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re an integral part of assessments and as they are the best evidence of a fact, within the personal knowledge of an assessee may if the admission is voluntary and not extracted by coercion or force, be read against an assessee. The relevance of an admission admits to another exception namely if the admission is retracted within reasonable time and by assigning valid reasons. A perusal of the impugned orders reveals that the assessee made an admission, on 18.01.2006 and followed it up by a written admission on 19.01.2006 but while filing his return did not retract the admission. At no stage of the survey or assessment proceedings except at its fag end on 4.12.2008 i.e. almost two years after the admissions and a few weeks before finalisation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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