Retraction of search statement requires prompt proof of coercion or mistake before a surrendered income disclosure can be displaced.

A search statement under section 132(4) is evidentiary but not conclusive, and a retraction is effective only if the assessee promptly proves coercion, duress, intimidation, or a bona fide mistake with contemporaneous material. The text explains that a belated complaint or unsupported allegation will not displace a signed surrender made after the statement was understood and countersigned, especially where the search yielded incriminating assets and documents. It also notes that appellate authorities must deal with the Assessing Officer's reasons for rejecting the retraction and not proceed on unrelated grounds.

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Issues: Whether the assessee was entitled to retract the statement made on oath under section 132(4) of the Income-tax Act, 1961, and whether the Assessing Officer was justified in making block assessment on the basis of the surrender so made.

Analysis: A statement recorded during search is an important piece of evidence, but it is not conclusive. The person making such statement may show that it was incorrect or was made under mistaken belief of fact or law. However, the burden of establishing coercion, duress, intimidation, or mistake lies on the assessee, and the retraction must be prompt and supported by contemporaneous material. In the present case, the search yielded unexplained cash, jewellery, documents, and loose papers. The assessee, after understanding and signing the statement, surrendered undisclosed income and the statement was countersigned by the other family members. No immediate retraction or contemporaneous complaint was made, and the allegation of coercion was raised only much later. The appellate authorities also proceeded on a ground not taken by the assessee and did not meet the Assessing Officer's reasons for rejecting the retraction.

Conclusion: The assessee failed to prove that the statement under section 132(4) was involuntary or made under mistake, and the Assessing Officer was justified in assessing the income on the basis of the surrender.

Ratio Decidendi: A retraction from a search statement under section 132(4) is valid only if the assessee promptly discharges the burden of proving coercion, duress, intimidation, or a bona fide mistake with credible contemporaneous material; otherwise, the surrender can form the basis of assessment.

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