TMI Blog2018 (9) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... course of search by which it can be said that the Assessee earned income of ₹ 25 lacs. There is no other basis to come to such a conclusion. In such circumstances, the addition of ₹ 25 lacs is sought to be made only on the basis of the Assessee’s letter dated 3. 6. 2014. It is also a well-accepted principle that an admission is not conclusive evidence as to the truth of the matter stated therein. It is only a piece of evidence the relevancy of which is required to be judged based on the material evidence and circumstances in which it is made. The statement of the Assessee u/s. 132(4) of the Act shows that he is employee of Ess & Ess Infrastructure Pvt. Ltd. , who were the main persons who were searched u/s. 132. Assessee earn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyee of Ess Ess Infrastructure. Statement u/s. 132(4) of the Act of the Assessee was recorded in the course of search. The gist of the statement of the Assessee was that he was employee of Ess Ess Infrastructure Pvt. Ltd. , on a monthly salary of ₹ 10, 000/-. He owns no immovable property and has Fixed Deposit of ₹ 83, 000/- in his name. Ess Ess Infrastructure Pvt. Ltd. is in the business of real estate and his job was to collect money from his boss for making payment to farmers against land agreements made. He used to negotiate with farmers for purchase of land. In answer to Q 13 regarding why vouchers of expenditure and payments and bills of expenditure pertaining to Ess Ess Infrastructure Pvt. Ltd. , were found in Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Assessee to explain as to why the sum of ₹ 25 lacs which was agreed to be offered to tax as income in the letter dated 3. 6. 2014 was not declared in the return of income. The Assessee in reply to the said query of the AO submitted that the said admission to offer income to tax was made under a mistake and ignorance. That the Assessee was from a rural background with no proper knowledge of tax laws. That Ess Ess Infrastructure Pvt. Ltd. , have already disclosed income before Settlement Commission Chennai and that there was no basis on which it can be said that the Assessee earned income of ₹ 25 lacs. 6. The AO however was of the view that the admission and declaration of income by the Assessee was final and conclusive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no admission to offer any income in the said statement. The letter dated 3. 6. 2014 by the Assessee was given only to purchase peace but there was no basis for declaration of ₹ 25 lacs as income of the Assessee and this has also been made clear in the said letter. There was no evidence found in the course of search by which it can be said that the Assessee earned income of ₹ 25 lacs. There is no other basis to come to such a conclusion. An addition to total income cannot be made on the basis of admission of an Assessee when it is shown that the said admission is made under erroneous belief and there is no basis or evidence to show that the admission is true. The learned DR submitted that the Assessee s plea was that the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant piece of evidence but it cannot be said that it is conclusive and it is open to the person who made the admission to show that it is incorrect. The statement of the Assessee u/s. 132(4) of the Act shows that he is employee of Ess Ess Infrastructure Pvt. Ltd. , who were the main persons who were searched u/s. 132 of the Act. The Assessee earns a monthly salary of ₹ 10, 000/-. He received ₹ 50 lacs from his employer for purchase of lands from farmers but could not conclude the transactions and returned the same to his employer. He is a person of no or very little means and not capable of earning ₹ 25 lacs. In such circumstances, no credence can be given to the admission of the Assessee that too in a letter. Such admis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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