Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 391 - HC - Income TaxUnderstatement of consideration for the plot of land – Statement made during survey later retracted by assessee – AO exceeds its power granted or not – Whether a retracted statement cannot constitute the sole basis for fastening liability upon the assessee or not - Held that:- The evidentiary 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 - a retracted statement cannot constitute the sole basis for fastening 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 liability upon the assessee – thus, the order of the assessment is to be set aside – Decided in favour of assessee.
|