Voluntary sworn statement on stock discrepancy binds assessee; later retraction rejected absent proved suspicious circumstances.

A voluntary sworn statement admitting stock discrepancy was treated as binding where inspection records showed no day-to-day stock accounts or serially numbered bills and the later explanation of stock transfer from a sister concern was found to be an afterthought supported by interpolated records. The court applied the principle that a party cannot approbate and reprobate, rejecting the attempted retraction in the absence of proved suspicious circumstances at the time of the statement. The assessment order was therefore restored in favour of the Revenue.

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Issues: Whether the assessee could retract from the voluntary sworn statement admitting stock variation and rely on subsequent documents to displace the best judgment assessment and deletion granted by the appellate authority.

Analysis: The inspection records showed that the assessee had not maintained day-to-day stock accounts or serially numbered bills, and stock variation had been noticed during the inspection. The assessee had then given a voluntary sworn statement admitting the discrepancy and stating that no explanation was available. The later plea of stock transfer from a sister concern was found to be an afterthought, and the supporting records were treated as interpolated. In these circumstances, the voluntary statement was held to bind the assessee, and the principle that a party cannot approbate and reprobate was applied to reject the attempted retraction.

Conclusion: The assessee could not retract from the sworn statement, and the restoration of the assessment order was upheld in favour of the Revenue.

Ratio Decidendi: A voluntary sworn statement admitting stock discrepancy cannot be retracted later to avoid assessment unless there are proved suspicious circumstances at the time it was made, and the assessee cannot approbate and reprobate.

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