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2018 (1) TMI 190 - ITAT JAIPURUndisclosed income in form of cash found during the course of search - retraction of the statement recorded u/s 132(4) - Held that:- In light of legal proposition laid down Ravi Mathur & others [2016 (5) TMI 1304 - RAJASTHAN HIGH COURT] there is clearly an inordinate delay in retraction and no justifiable explanation has been given by the assessee company for such delay. It is clearly an afterthought and loses its signifance. The statement recorded u/s 132(4) has great evidentiary value and there is no material which has been brought on record that such statement has been recorded and obtained forcefully/by coercion/undue influence. Further, the assessee has been consistent in his statements so recorded even during the post search proceedings when his statement was recorded under section 131. Hence, in light of above discussions, the retraction of the statement recorded u/s 132(4) cannot be accepted in the instant case. Thus the addition towards the undisclosed income in form of cash found during the course of search is confirmed in the hands of the assessee company. - Decided against assessee. Disallowance u/s 40A(3) - Held that:- Where the amount has been offered to tax in the subsequent year, the same amount cannot be brought to tax in the impunged assessment year. Hence, the addition is deleted and ground of appeal is allowed in favour of the assessee. Addition u/s 40A(3) - Held that:- The fact that the payments have been made for the purposes of the assessee’s business have not been doubted by the AO. Regarding the business exigency of making payment in cash, it has been stated that first payment has been made after the banking hours for making labour payment, the second payment was necessitated on account of machine break down at site. Regarding the third payment, it has been stated that the said was paid to two labourers and payment to each is less than ₹ 20,000 and in this regard, we find that the ld CIT(A) has in similar circumstances allowed the payment in cash to the labourers not exceeding ₹ 20,000. In the entirety of facts and circumstances of the case, the disallowance made by the AO amounting to ₹ 82,200 is hereby deleted. In the result, ground of appeal is allowed.
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