TMI Blog2012 (8) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee’s own income was just one day before her delivering a premature baby was filed under duress belief that once income is admitted, there will be no further I.T. proceedings - as there are no cash withdrawals and no personal expenditure of the appellant was met out of the bank account, AO’s observation that the appellant’s explanation is a concocted story does not stand to reason - in favour of assessee. - I.T.A. No.3305/Ahd/2011 - - - Dated:- 6-7-2012 - Shri Mukul Kumar Shrawat, and Shri A.K. Garodia, JJ. Department by : Shri Samir Tekriwal , Sr. D.R. Assessee by : Shri S.N. Divatia, A.R. ORDER PER : A.K. Garodia, Accountant Member This is Revenue s appeal directed against the order of Ld. CIT(A)-XX, Ahm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. D.R. of the Revenue supported the assessment order. He placed reliance on the following judgments:- 1. Ramesh Chandra vs. CIT 168 ITR 375 2. Raman Lal Kamdar vs. CIT 108 ITR 73 3. Mahesh Chandra Shah vs. CIT 238 ITR 130 As against this, Ld. A.R. of the assessee supported the order of Ld. CIT(A). He also placed reliance on the judgment of Hon ble Gujarat High Court rendered in the case of Kailash Ben Manhar Lal Chokshi reported in 328 ITR 411 5. We have considered the rival submissions and perused the record and gone through the order of authorities below and the judgments cited by both sides. As per copy of the bank statement appearing at page 13 14 of the paper book, we find that all the withdrawals are on account of pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once income is admitted, there will be no further I.T. proceedings but when subsequently, penalty proceedings were initiated u/s 271(1)(c), the assessee is withdrawing such disclosure made before the A.O. This issue was decided by Ld. CIT(A) at para 4.6 of the order which is reproduced as under:- I have considered the facts of the matter. I am in agreement with the contentions of the learned AR that the evidence furnished fully supports the fact that the cash deposits in bank account were made out of the funds received from clients towards LIC premium. The affidavit filed by her during the assessment proceedings was just one day before her delivering a premature baby. Appellant s contention that the affidavit was filed under duress is fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained from the assessee, it cannot be said that the statement was voluntary if such statement is retracted and necessary evidence is led contrary to such admission, then no addition can be made on the basis of such statement. In the present case, the disclosure was made by the assessee because she was in advanced stage of pregnancy and her father-in-law was also diagnosed with Parkinson disease and she was having apprehension that if the investors are called for recording statement by the A.O., she will lose business of insurance agency. She agreed for such addition under this mistaken belief that it will be end of the matter but later on she was facing penalty proceedings and therefore, she had disputed this addition on the basis of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it will end the dispute and the same was admitted as income under this belief that if the parties are issued summons by the A.O., it will hamper the goodwill of the assessee and her family members which will adversely affect the business. Hence, this judgment is not applicable in the present case because the facts are different. 9. The second judgment cited by Ld. D.R. of the Revenue is the judgment of Hon ble Madras High Court rendered in the case of Ramanlal Kamdar Vs. CIT (supra). In that case, issue involved was that the A.O. sought to rectify the original assessment order u/s 154. The assessee did not object to rectification proposed by the A.O. and under these facts, it was held that it cannot be accepted that the assessee is agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion, under these facts, no person can be normal both, physically and mentally and particularly when the father-in-law of the assessee was also diagnosed with Parkinson disease in the same period. Hence, in the facts and circumstances of the present case, it has to be accepted that the assessee was not in proper state of mind at the time when affidavit was furnished by her to the A.O. admitting the income in question and, moreover, afterwards, the assessee is able to establish that the deposits do not belong to her because total withdrawal from the bank account is on account of payment to LIC and in support, wrote a letter to the LIC of India. Nothing adverse has been brought on record by the A.O. to show that such investment with LIC made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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