TaxTMI 
TaxTMI 
2006 (7) TMI 162
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.... the Tribunal was justified in ignoring the admission merely on the basis of later retraction in spite of its coming to the conclusion that any exercise of coercion or duress or threat by the search officials on the assessee or assessee's father, has not been established or proved in the instant case? (ii) Whether there was any material on record on the basis of which it can be held that the admission made by the assessee during the course of search in his statement stood clarified and the presumption arising therefrom stood rebutted?" 2. The question relates to addition made by the Assessing Officer in the income of the assessee-respondent as undisclosed income on the basis of undisclosed investment made in the construction....
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.... sources to the extent of Rs. 14,50,000/- instead of Rs. 7,50,000/- disclosed by the assessee as income from undisclosed sources and invested in the house. 5. According to the assessee, his total investment in the construction of house was Rs. 14,50,000/-, after adjustment of the investment already disclosed in his books of accounts, he had surrendered the additional investment by way of income from undisclosed sources in response to the notice under section 158BC. 6. The addition made by the Assessing Officer in respect of investment made in construction of house during the period covered by the block assessment years was affirmed by the Commissioner of Income-tax (Appeals) vide his order dated August 3, 1999. 7. The Tribunal afte....
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....tated that it is relying only on the retracted statement but a perusal of the Tribunal's order goes to show that it has correctly stated the principle regarding evaluation and evidentiary value of admissions of any person. It has merely stated that the admissions are relevant and strong piece of evidence that may be used against the person making such admission but they are not conclusive proof of the statement contained in the admission and can always be explained. The Tribunal also was of the view that once the admission made in the earlier statement is retracted, the second statement has to be read together to evaluate the weight of the admission for the purpose of appreciating the evidence. The principles are correctly stated by the....
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....ated merely by reading one part of evidence, which has otherwise duly gone into consideration by the final fact finding authority, which in the case of assessment proceedings is the Tribunal. 12. We find from the material available on record that the assessee himself in his statement recorded under section 132(4) has merely stated that he has purchased the constructed house for Rs. 8,50,000/-. So far as the investment in construction of house is concerned, the same is recorded in his books of account. That was only statement in his statement recorded under section 132(4) during the search, on the very date, when his father's statement was recorded. 13. Shrichand in his statement while at one stage stated that Rs. 23,00,000/- has b....
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....t about the market value of property on a given date, which is after the investment has been made is not of the exact amount of investments made when the property is acquired or constructed. Ordinarily in the case of immovable property the valuation report of the later date than acquisition or construction represents appreciated value of property at which it can be sold in open market or its estimated replacement cost. 16. It is trite to say that admissions are relevant pieces of evidence and are not conclusive proof of fact. An admission can always be explained. Once this position is accepted, the question remains of appreciating evidence which is on record, which includes the evidence in the form of attending circumstances and the stat....