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TMI Blog2016 (8) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... remises of the appellant on 10.03.2010 and during the course of survey, the appellant had surrendered an amount of Rs. 3.60 crores, but in the return of income filed, it had not declared the entire amount of Rs. 3.60 crores and so the Assessing Officer questioned the appellant about not declaring the amount of Rs. 91,09,000/- and the appellant had replied as under: "The assessee had entered into an agreement with one Mr. Gurumukh Singh son of Sh. Ranjit Singh resident of village Mullapur, Garibdas, District-Mohali (Punjab) for trading in land in an around village Mullapur, Garibdas. All the transaction for the purchase and sale were in cash. Only in the case of BNK investments there was a transaction where the assessee had suffered a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wledging that land trading was being done by the appellant, wherein an amount of Rs. 3,25,00,000/- had been earned till 10.03.2010 and was offered for 'taxation, but Department refuses to accept the fact that out of the same amount, an amount of Rs. 91,09,000/- was not received back, which was claimed as expenditure. 5. The ld. CIT(Appeals), however, did not accept contention of the assessee and dismissed the appeal of assessee. Same is reproduced as under : "3.3 I have considered the submission of the Ld. Counsel. The appellant was carrying on the business of the land transactions through Shri Gurmukh Singh. As per the details filed, Sh. Gurmukh Singh used to enter into the land deals by paying token amount and was selling the land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable to the case of the appellant. In that case, the assessee had surrendered an amount of Rs. 19,00,000/- on account of investment in a shop, but subsequently he resiled from his statement on the ground that he had agricultural income and investment was from that source, evidence of which was found during the course of survey in the form of a diary. The Assessing Officer rejected the contention of the appellant by holding that there was a long gap between the statement made originally on 21.03.2003 and retraction on 28.05.2003 of the said statement and the stand taken was an afterthought. The Commissioner of Income Tax (Appeals) accepted the plea of the assessee, but Hon'ble Tribunal reversed the view taken by CIT(A) by holding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who makes it. The reason behind this is that a person making a statement stops the opposite party from making further investigation. It is true that there are exceptions to such admission where the assessee can retract from such admission. The first exception is where such statement is made involuntarily i.e. obtained under coercion, threat, duress, undue influence etc, but in this situation, the burden lies on the person making such allegations to prove that statement was obtained by the aforesaid means. The second exception is where the statement has been given under some mistaken belief either of fact or law and in that situation, the assessee has to show that the statement was made on mistaken belief of facts and he can retract from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed transaction chart giving the details of sales and profit/loss earned thereon before the authorities below, copy of which is reproduced at page 3 of the assessment order and copy of the same is also filed at page 9 of the Paper Book. It disclosed that assessee had entered into various transactions with Shri Gurmukh Singh. The revenue department accepted all the transactions mentioned in this chart. However, the last deal of 05.03.2010 was partly accepted with regard to land purchase for price and advance given but loss suffered on account of deal did not materialized and assessee suffered loss, was not accepted. This chart is supported by PB-10 to 14 which is the details of transactions mentioned in this chart and have been signed on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich should not have been ignored by the authorities below. The assessee despite making surrender at the time of survey could explain that admission was incorrect or do not show correct state of fact. The assessee could prove that the admission made by him was in fact not correct and true. We rely upon decision of Hon'ble Supreme Court in the case of Pullangode Rubber Produce Co. Ltd. 91 ITR 18 and decision of Hon'ble Punjab & Haryana High Court in the case of Kishan Lal Shiv Chand 88 ITR 293. 6(ii) Considering material on record and the fact that the authorities below believed the chart produced by assessee for transaction with Shri Gurmukh Singh as reproduced in the assessment order, there was no reason for the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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