TaxTMI 
TaxTMI 
2022 (5) TMI 939
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....ssessee. Thus the addition is not sustainable. 3. That in any case and in any view of the matter action of Ld. CIT(A) in making addition of Rs. 50 lacs is bad in law and against the facts and circumstances of the case." 3. In ITA No. 4846/Del/2016, following grounds have been raised by the assessee: "1. That having regard to the fact and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Rs. 75,00,000/- only on the on the basis of alleged statement of assessee which was recorded at the time of search and has even being retracted on 09.07.2012 by the assessee. Thus the addition is not sustainable. 2. that having regard to the fact and circumstances of the case, Ld. CIT(A) has erred in law and on facts in making addition of Rs. 4,58,700/- on account of cash found at the time of search. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in making addition of Rs. 5,27,375/- on account of jewellery found but not seized during the search." 4. The assessee is an individual and deriving income from business, house property and other sources. A searc....
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....t of the said retraction letter is as under: "3. What ever income was disclosed by me in my statement at the time of the search & seizure operation was disclosed by me under duress of the circumstances in which I was placed at that moment and in good faith only at your insistence and your advice relying on your considered opinion that that was the amount of leakage indicated from the seized material and your lure that if I surrender it for tax we will be spared the rigor of penalties imposable and liability from prosecution. I have no knowledge of any undisclosed income earned by me or my family members or the business concerns with which we are associated. In retrospect I wonder as to what material you could have found to demand from me a surrender of that magnitude. We are in the process of appreciating the copies of seized material to find it out for ourselves. I further require the copies of my statement and those off my family members and employees, recorded at the time the search & seizure operations to appreciate the situation for which we have already applied and it will be only after the requisite exercise that I will be in a position to revert on the matter." ....
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....some assessees were coerced to admit undisclosed income during searches/surveys conducted by the Department. It is also seen that many such admissions are retracted in the subsequent proceedings since the same are not backed by credible evidence. Such actions defeat the very purpose of Search/Survey operations as they fail to bring the undisclosed income to tax in a sustainable manner leave alone levy of penalty or launching of prosecution. Further, such actions show the Department as a whole and officers concerned in poor light. 2. I am further directed to invite your attention to the Instructions/Guidelines issued by CBDT from time to time, as referred above, through which the Board has emphasized upon the need to focus on gathering evidences during Search/Survey and to strictly avoid obtaining admission of undisclosed income under coercion/undue influence. 3. In view of the above, while reiterating the aforesaid guidelines of the Board, I am directed to convey that any instance of undue influence/coercion in the recording of the statement during Search/Survey/Other proceeding under the I.T. Act, 1961 and/or recording a disclosure of undisclosed income under und....
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....nexplained cash u/s. 69A (A.Y. 2013-14) 17. During the course of search, unaccounted cash of Rs. 4,58,700/- was found from residence of the assessee for which the assessee stated u/s. 132(4), to be belonging to his daughter Smt. Richa Arya and mother late Prem Lata Jain. Later he stated that cash belonged to Sh. Akshat Bansal and Smt. Alka Bansal submitting cash in hand available with them as on 31.03.2013. 18. The AO held that as per the cash in hand available in hands of entire family of the assessee as on 31.03.2013, the cash found physically should have been more than Rs. 4,58,700/-. 19. The cash in hand available as on 31.03.2013 as per the AO with the family members of the assessee was as under: i. Rishi Bansal Rs. 1,13,371/- ii. Alka Bansal Rs. 1,38,044/- iii. Akshat Bansal Rs. 8,74,356/- iv. Meetu Bansal Rs. 2,80,753/- 20. The AO held that the total cash in hand was Rs. 14,06,524/- as on 31.03.2013. The AO held that the assessee has not furnished any evidence to prove the status of cash flow in the entire family between period 31.03.2013 to 26.04.2013 as on the date of search and the amount of Rs. 4,58,700/- found at the premi....