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TMI Blog2015 (8) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... mount may be verified from the credits entered in the diaries. The chartered accountant clarified the statement, with an observation that the surrendered amount must be subject to the verification of the credits entered in the diaries and thereby reducing the amount surrendered to that extent. He had further explained that the amount worked out was on the peak investment, for which working had been done by arranging transactions entered in the diaries in historical sequence in a details statement. The statement included both the unexplained and surplus resulted from such transactions. The total unexplained investment, according to the chartered accountant, worked out to ₹ 6,13,080 as against ₹ 9,32,107 arrived by merely roughly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AKASH GUPTA, J. Sameer Jain for the appellant Anant Kasliwal with Amitabh Verma for the respondent JUDGMENT 1. We have heard learned counsel appearing for the parties. 2. The special appeals are directed against the orders dated January 29, 1999, passed by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (for short, the Tribunal ), by which the Tribunal has partly allowed the appeals filed by the assessee and dismissed the appeals of the Revenue. 3. The appeal was admitted on the following substantial questions of law : 1. Whether the statement recorded under section 132(4) of the Income-tax Act can be ignored or overlooked, which is free from any ambiguity or extraneous circumstances ? 2. Whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,540. The Assessing Officer assessed the total unexplained income for the four years at ₹ 8,92,268. In appeal before the Commissioner of Income-tax (Appeals), the addition of ₹ 5,08,500 was made, and the relief was given for the remaining amount. The details of the revised returns, assessments and the orders upheld by the Commissioner of Income-tax (Appeals) are given as follows : Assessment year Filed by the assessee Assessed Finally upheld by the CIT(A) 1990-91 1,52,690 2,74,750 1,75,000 1989-90 55,430 2,67,168 1,76,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue that the appellate authority as well as the Tribunal have grossly erred in law, inasmuch as they could not have reduced the amount, in view of the clear and unequivocal surrender made by the assessee. He has relied on V. Kunhambu and Sons v. CIT [1996] 219 ITR 235 (Ker), in which the Kerala High Court held that considering the income from undisclosed sources and on a surrender made in the premises, the assessment on the basis of the voluntary statement was valid. The Kerala High Court, considering the import of section 132(4), held that it does not change the substantive provision of the Act nor does it lay down a different method of using the statement recorded under sub- section (4) of section 132 of the Act. Sub-section (4), whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the peak investment, for which working had been done by arranging transactions entered in the diaries in historical sequence in a details statement. The statement included both the unexplained and surplus resulted from such transactions. The total unexplained investment, according to the chartered accountant, worked out to ₹ 6,13,080 as against ₹ 9,32,107 arrived by merely roughly adding the sums mentioned in diaries irrespective of it being a debit entry or credit entry. Further, surplus of cash according to working statement, comes to ₹ 1,52,407. 11. We do not find any force in the submission of the learned counsel appearing for the Revenue that the surrender was unconditional, without any explanation, or that, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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