Post-search letter is not a section 132(4) statement and cannot, by itself, bind assessment.

A post-search letter sent by a partner, not recorded on oath during the search, could not be treated as a statement under section 132(4) of the Income-tax Act or as a binding admission against the assessee. Because the letter was only a conditional expression of intent to file a revised return and was not a prescribed return itself, the Assessing Officer could not reject the revised return solely on that basis. The assessment authority was required to examine the revised return independently on its merits, and the issue was decided in favour of the assessee.

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Issues: Whether a post-search letter sent by a partner of the assessee could be treated as a statement recorded under section 132(4) of the Income-tax Act or as an admission binding the assessee, and whether the Assessing Officer could reject the revised return solely on that basis.

Analysis: A statement under section 132(4) is one recorded on oath by the authorised officer during the course of search or seizure and can be used in evidence in income-tax proceedings. The letter in question was an ordinary post-search communication sent by a partner and was neither recorded on oath nor made during the search. It also was not a prescribed return and expressed only a conditional intention to file a revised return while seeking deduction under section 80HHC. On that footing, it could not be treated as a section 132(4) statement, nor as a standalone admission for completing the assessment. The provisions of the Indian Evidence Act regarding confessions and admitted facts were held inapplicable on these facts, and the Assessing Officer was required to examine the revised return on its own merits.

Conclusion: The letter could not displace the revised return or be used as the sole basis for assessment, and the question was answered against the Revenue and in favour of the assessee.

Ratio Decidendi: A post-search letter not recorded on oath during search under section 132(4) of the Income-tax Act cannot be treated as that statutory statement or as a binding admission for assessment, and the assessment authority must scrutinize the revised return independently on merits.

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