Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
AT upheld the admissibility and evidentiary value of statements recorded u/s 40 FERA, despite subsequent retraction, holding that retraction alone does not establish involuntariness and noting sufficient independent and cogent corroborative evidence, including recovered documents, seized cash and corroborating statements. AT affirmed findings of contravention of Ss. 8(1), 8(2), 9(1)(f)(i) and 14 FERA, rejecting the appellant's challenge to the merits of the adjudication. However, considering the appellant's age and prior deposit of part of the penalty, AT exercised discretion to reduce the penalty to Rs. 9,00,000/-, directing adjustment of amounts already deposited/released. Appeal was thus partly allowed, limited to quantum of penalty.
AT upheld the admissibility and evidentiary value of statements recorded u/s 40 FERA, despite subsequent retraction, holding that retraction alone does not establish involuntariness and noting sufficient independent and cogent corroborative evidence, including recovered documents, seized cash and corroborating statements. AT affirmed findings of contravention of Ss. 8(1), 8(2), 9(1)(f)(i) and 14 FERA, rejecting the appellant's challenge to the merits of the adjudication. However, considering the appellant's age and prior deposit of part of the penalty, AT exercised discretion to reduce the penalty to Rs. 9,00,000/-, directing adjustment of amounts already deposited/released. Appeal was thus partly allowed, limited to quantum of penalty.
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