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2017 (11) TMI 1231 - AT - Income TaxUnexplained investment in gold/silver jewellery - retraction of the statement recorded u/s 132(4) - retraction of statement recorded was not proper being made after an inordinate delay.Held that:- Once a statement is recorded under Section 132(4), such a statement can therefore be used as a strong evidence against the assessee in assessing the income. However, as held by the Hon’ble High Court in case of Ravi Mathur (2016 (5) TMI 1304 - RAJASTHAN HIGH COURT) before the Assessing officer take a final view in the matter, he can travel beyond even the seized papers to come to a logical conclusion and can even examine the entries recorded in the books of account. The assessee has to offer an explanation even of the recorded transaction and the genuineness of the same is also required to be proved. In the instant case, the assessee claims that he has made detail explanation as to how the jewellery is fully disclosed and the AO, without pointing out any discrepancy in the explanation and evidence filed, brushed aside the same holding that since there is lapse of 357 days in filing the affidavit retracting the statement recorded u/s 132(4), the retraction is not possible and made the additions. We find that the said approach of the AO is not correct and the ld CIT(A) however has taken a correct approach. The ld CIT(A) in his order has stated that the addition cannt be made simply on the basis of the statement recorded in search. The same has to be decided on the basis of all the evidences on record. He accordingly, proceeded to decide the issue on the basis of the evidences filed and available on record before the AO. We donot firm any infirmity in the said approach of the ld CIT(A) and the same is in tune with the legal proposition laid down by the Hon’ble Rajasthan High Court. - Decided against revenue
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