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2015 (5) TMI 429 - ANDHRA PRADESH HIGH COURTSearch u/s 132 - undisclosed income of three items - assessee submits that the AO rested his conclusions exclusively on the statement recorded under section 132(4) of the Act and that the same is opposed to law- Held that:- The search that was conducted on March 4, 1997, led to the block assessment against the appellant covering the period from 1987-88 to 1997-98. Though the appellant submitted the returns showing nil income, the Assessing Officer conducted a detailed enquiry with reference to various items that are said to have been noticed by him before the search. The three items referred to above were dealt with in detail in the order of assessment. The defence offered by the appellant was that he clearly mentioned at the time of recording of the statement that the same would be subject to verification of the books of account. The statement recorded under section 132(4) of the Act would certainly constitute an important basis for an Assessing Officer to take necessary steps under the provisions of the Act. However, if the statement is retracted and there does not exist any other reliable material, making of assessment on the basis of such retracted statement cannot be treated as legal. Therefore, it is difficult to hold that the statement was bereft of any material. As a matter of fact, the relevant documents were shown to the appellant and he not only admitted the genuinity of those documents but also made it clear that the amount mentioned therein is an unaccounted income. Once the questions were put to the appellant, on the basis of the seized documents, which in turn were assigned separate numbers, there is no way the appellant can disown the same. Further, this is not a case, where the block assessment is based exclusively upon the statement. It was supported by the other documents seized during the course of search. - Decided against assessee.
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