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TMI Blog2018 (9) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... dividual. There was a search and seizure operation conducted u/s. 132 of the Income Tax Act, 1961 (Act) in the Assessee's residential premises at Mysore on 12. 9. 2013. The Assessee is an employee of Ess & Ess Infrastructure Pvt. Ltd. Search was carried out in the case of Ess & Ess Infrastructure Pvt. Ltd. also and the Assessee was searched because he was employee of Ess & Ess Infrastructure. Statement u/s. 132(4) of the Act of the Assessee was recorded in the course of search. The gist of the statement of the Assessee was that he was employee of Ess & Ess Infrastructure Pvt. Ltd. , on a monthly salary of Rs. 10, 000/-. He owns no immovable property and has Fixed Deposit of Rs. 83, 000/- in his name. Ess & Ess Infrastructure Pvt. Ltd. is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is employer. That the Assessee did not derive any income on such land dealings. Nevertheless, to purchase peace, the Assessee is offering a sum of Rs. 25 lacs to tax as his income for the year ending 31. 3. 2014. 5. In the return of income filed for AY 2014-15, the Assessee did not offer to tax the sum of Rs. 25 lacs. The AO called upon the Assessee to explain as to why the sum of Rs. 25 lacs which was agreed to be offered to tax as income in the letter dated 3. 6. 2014 was not declared in the return of income. The Assessee in reply to the said query of the AO submitted that the said admission to offer income to tax was made under a mistake and ignorance. That the Assessee was from a rural background with no proper knowledge of tax laws. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade is sustained. " 7. Aggrieved by the order of the CIT(A), the Assessee has filed the present appeal before the Tribunal. We have heard the rival submissions. The learned counsel for the Assessee read out the statement u/s. 132(4) of the Act and submitted that there was no admission to offer any income in the said statement. The letter dated 3. 6. 2014 by the Assessee was given only to purchase peace but there was no basis for declaration of Rs. 25 lacs as income of the Assessee and this has also been made clear in the said letter. There was no evidence found in the course of search by which it can be said that the Assessee earned income of Rs. 25 lacs. There is no other basis to come to such a conclusion. An addition to total income ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material evidence and circumstances in which it is made. In the decision in Pullangode Rubber Produce Co, Ltd. vs. State, of Kerala 1972 CTR (SC) 253: (1973) 91 ITR 18 (SC), the Apex Court held that an admission is extremely an important piece of evidence but it cannot be said that it is conclusive and it is open to the person who made the admission to show that it is incorrect. The statement of the Assessee u/s. 132(4) of the Act shows that he is employee of Ess & Ess Infrastructure Pvt. Ltd. , who were the main persons who were searched u/s. 132 of the Act. The Assessee earns a monthly salary of Rs. 10, 000/-. He received Rs. 50 lacs from his employer for purchase of lands from farmers but could not conclude the transactions and returned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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