2019 (2) TMI 1641

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....the revenue has raised following grounds of appeal: "On the facts and in the circumstances of the case, the CIT(A) has erred in 1. Deleting the addition of Rs. 2,25,00,000/- made by the A.O. on account of income surrendered by the Assessee as per statement recorded u/s 132(4) of Income Tax Act, 1961." 2. The facts in brief are that a search action was carried out at the premises of the assessee. During the course of search, certain documents were seized. A statement of the assessee was recorded in which the assessee admitted and surrendered income on behalf of self and others. The A.O. therefore made addition of Rs. 2,25,00,000/-. Against this, the assessee preferred an appeal before Ld. CIT(A), who after considering submissions del....

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.... assessee that during the course of search & seizure, no incriminating material or undisclosed income or investments were found. It is stated that the assessee was under mental pressure and tired. Therefore, to buy peace of mind, he accepted and declared Rs. 3 crores in personal name. It is also stated that the case laws as relied by the A.O. are not applicable on the facts of the present case. The assessee has relied on the decision of the Hon'ble Supreme Court rendered in the case of Pullangode Rubber Produce Co. Ltd. 91 ITR 18 (SC), wherein the Hon'ble Court has held that admission cannot be said that it is conclusive. Retraction from admission was permissible in law and it was open to the person who made the admission to show th....

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....n the statement with the incriminating material gathered during the search. Therefore, no inference is called for in the finding of the Ld. CIT(A) and is hereby affirmed. Ground raised by the revenue is dismissed. 7. In the result, the appeal filed by the revenue is dismissed. 8. Now we take up appeal of the assessee in ITA No.299/Ind/2017. The assessee has raised following grounds of appeal: 9. The assessee has taken a legal plea that the notice initiating the penalty is bad in law. Therefore, the proceedings initiating penalty are vitiated. Ld. Counsel for the assessee has drawn our attention to the notice. Notices are enclosed along with synopsis. For the sake of clarity, contents of the written synopsis are reproduced as under: ....