2015 (12) TMI 1322

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....f Rs. 5,90,430/- on 13.11.2007. During the course of search proceedings at the residence of the assessee, the statement of the assessee was recorded u/s 132(4) of the Income Tax Act, 1961 wherein he was shown Annexure A-1 found and seized from his residence which contained various documents relating to properties in the name of his wife and self. The assessee thereafter surrendered a sum of Rs. 2 crores in his statement recorded during search and seizure proceedings. However, the asessee retracted the statement of surrender on 28.11.2006. In the assessment proceedings, u/s 143(3) the AO however added the sum of Rs. 2 crores and made an assessment at an income of Rs. 2,05,90,430/- . In the first appeal the Ld. CIT(A) given a categorical find....

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....idence because admissions are self-harming statements made by the maker believing it to be based on truth. He further submitted that no one will tell a lie especially harming one's own interest unless such a statement was true. Ld. Dr accordingly pleaded for the quashing of order of the Ld. CIT(A). 3. On the other hand, the Ld. AR relied on the order of the Ld. CIT(A) and drew attention to page 12 of the paper book which is a copy of the retraction statement dated 28.11.2006 wherein the assessee had submitted that the statement u/s 132 (4) of the Act was recorded under pressurised mental state of mind although no corresponding investments / income were found. Ld. AR also submitted that his case is squarely covered by the decision of 'B' Be....

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....se of search & seizure and survey operations do not serve any useful purpose. It is, therefore, advised that there should be focus and concentration on collection of evidence of income which leads to information on what has not been disclosed or is not likely to be disclosed before the Income-tax Department. Similarly, while recording statement during the course of search & seizure and survey operations no attempt should be made to obtain confession as to the undisclosed income. Any action on the contrary shall be viewed adversely. Further, in respect of pending assessment proceedings also Assessing Officers should rely upon the evidences/materials gathered during the course of search/survey operations or thereafter while framing the rele....

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....gned addition regarding bogus capital - Statement recorded under s. 132(4) does not tantamount to unearthing any incriminating evidence during the course of search - Therefore, no addition could be made only on the basis of such statement." * Rajesh Jain vs. DCIT (2006)100 TTJ (Del) 929 : "Search and seizure - Block assessment - Retraction of statement - Addition of Rs. 2S Lakhs made solely on the basis of confessional statement of assessee that he earned the sa1d amount in the last Ten years was not justified - Confessional statement should be corroborated with some material to show that assessment made is just and fair" 7. Thus in our considered view and respectfully following the ratio of judgments as mentioned herein above, we have ....