TaxTMI 
TaxTMI 
2010 (7) TMI 211
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons of law : "(i) Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal was correct in law in sustaining the addition of Rs. 19 lakhs made solely on the basis of the statement of the assessee recorded on March 21, 2003 which was retracted on May 28, 2003, which was recorroborated by evidence collected during the course of survey, contrary to the ratio of the Supreme Court in Pullangode Rubber Produce Co. Ltd. v. State of Kerala [1973] 91 ITR 18 ? (ii) Whether the hon'ble Income-tax Appellate Tribunal was correct in law in sustaining the addition of Rs. 19 lakhs when the assessee was able to explain the source of investment through entries made in his gatta diary which was seized during the course of survey ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....recovered during the survey. On further appeal, the Tribunal reversed the view taken by the Commissioner of Income-tax (Appeals). It was held that the burden was on the assessee to establish that the admission made by him during the survey was wrong. The assessee had failed to produce the books of account or contemporaneous record of the period during which agricultural income was earned. The statement having not been retracted at the earliest opportunity, voluntary statement made in the presence of family members was an important piece of evidence which could not be brushed aside. It was held that the statement of the assessee was material during survey and could be basis of assessment when the assessee had not maintained regular books of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase that the assessee produced the records, books of account or the income-tax record of the period when the assessee claimed to have done potato business by claiming bad debt. As far as the question posed by the learned Commissioner of Income-tax (Appeals) in his order, 'whether the assessee can retract his statement' the obvious reply is 'yes' but that should be at the earliest opportunity when the statement was recorded or at least within a reasonable time, consequently, the voluntary statement that too recorded in the presence of family members and counsel is an important piece of evidence which simply cannot be brushed aside unless and until otherwise is proved. Identical ratio was laid down by the hon'ble jurisdictional High Court in ....