TMI Blog2014 (12) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... ng liability upon the assessee – assessee specifically pleaded that the statements were recorded from them by applying pressure, till midnight, and that they have been denied access outside the society – the AO does not have any power, right or jurisdiction to tell, much less to decide, upon the nature of withdrawal or retraction - His duty ends where the statement is recorded - If the statements are retracted, the fate thereof must be decided by law meaning thereby, a superior forum and not by the very authority, who is alleged to have exerted force - the appellate authority and the Tribunal did not apply the correct parameters, while adjudicating the appeals filed before them - there was absolutely no basis for the AO to fasten the liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentical orders of assessment dated 01.12.1998 against them. The tax was determined and interest was levied thereon. The three partners filed appeals before the Commissioner of Appeals. The appeals were partly allowed through a common order dated 09.06.1999. Thereupon, the appellants filed I.T.A.Nos.597 to 599/Hyd/99 before the Hyderabad Bench B of the Income Tax Appellate Tribunal (for short, the Tribunal). The appeals were partly allowed by the Tribunal through order dated 09.04.2003. Not content with that relief, they filed I.T.T.A.Nos.268, 273 and 308 of 2003 under Section 260-A of the Act. The appellants have also filed Miscellaneous Petitions before the Tribunal for rectification of the order in the appeals. The Miscellaneous Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in the instant case, the so called retraction is after more than one year from the date of recording of the statements. He submits that the Assessing Officer, the Commissioner and the Tribunal have decided the matter correctly and no interference is warranted. The proceedings initiated against the appellants are the result of a survey. The only matter that was dealt with during the survey, was the transaction of purchase of an item of immovable property. The sale deed reflected the consideration of the property as ₹ 3,57,600/-. However, according to the Assessing Officer, the partners of the firm have voluntarily stated that the consideration was understated by ₹ 2,00,000/- and that the said amount is their undisclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentiary value of a retracted statement becomes diluted and it looses the strength, to stand on its own. Once the statement is retracted, the Assessing Authority has to garner some support, to the statement for passing an order of assessment. In I.T.A.No.112 of 2003, this Court dealt with the very aspect and held that a retracted statement cannot constitute the sole basis for fastening liability upon the assessee. In the instant case, the appellants specifically pleaded that the statements were recorded from them by applying pressure, till midnight, and that they have been denied access outside the society. The Assessing Officer made an effort to depict that the withdrawal or retraction on the part of the appellants is not genuine. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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