Tribunal upholds voluntary statement, dismisses appeal due to undisclosed income

The Tribunal found that the statement recorded under section 132(4) was voluntary and not made under duress. The retraction of the statement was deemed invalid as it lacked evidence of coercion. The disclosure in the statement was supported by seized documents showing unaccounted transactions, leading to the confirmation of undisclosed income and dismissal of the assessee's appeal.

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Issues Involved:
1. Voluntariness of the statement recorded u/s 132(4).
2. Validity of retraction of the statement.
3. Support of the statement by seized documents.

Summary:

Voluntariness of the Statement Recorded u/s 132(4):
The Tribunal examined whether the statement recorded under section 132(4) during the search was voluntary or made under duress. The Tribunal noted that the statement made by Shri D.N. Shah was specific and detailed, containing facts unknown to the search party, which indicated that the statement was given voluntarily without any duress or coercion. The Tribunal concluded that the search party did not use any force or intimidation, and the statement was made voluntarily.

Validity of Retraction of the Statement:
The Tribunal considered the retraction of the statement made by Shri D.N. Shah through an affidavit filed after about a month. The Tribunal held that the retraction was an afterthought and not valid, as it was not supported by any evidence of coercion or intimidation by the search party. The Tribunal emphasized that if the statement was made under duress, the retraction should have been immediate, and there should have been communication with higher authorities regarding the alleged coercion.

Support of the Statement by Seized Documents:
The Tribunal found that the disclosure made by Shri D.N. Shah was supported by various documents seized during the search, which indicated large-scale unaccounted transactions. The Tribunal noted that the documents contained financial transactions running into crores, supporting the voluntary disclosure of Rs. 3 crores. The Tribunal rejected the arguments of the assessee that the documents did not have evidentiary value and that the statement was made under duress.

Conclusion:
The Tribunal upheld the additions made by the Assessing Officer, confirming the total undisclosed income of Rs. 2,22,87,150 for the block period under section 158BC. The appeal of the assessee was dismissed.

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