2013 (1) TMI 397

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..... 24.9.87 or as amended by insertion of the explanation therein w.e.f 1.4.89? 2. Whether the statement on oath recorded on 24.9.87 is within the ambit and scope of section 132(4) as amended by insertion therein of the explanation w.e.f 1.4.89 and consequently admissible in evidence in the assessment proceedings? 3. Whether the addition of Rs.20 lakhs was proper and justified on the basis of the admission in the statement u/s 132(4) voluntarily made without there being any corroborative evidence of the existence of any such income in any tangible form?" 2. However, reference has been argued on the question no.1 only and it has been submitted that though the question has been formulated with respect to applicability of proviso to section 132 .....

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..... will permit the tax evaders to give statement under section 132(4) admitting liability of income without any coercion, duress or force and then retract from that statement. It is also submitted that even retraction requires some corroborative evidence and the assessee could have submitted his evidence to show that he had no such income as has been admitted in his statement under section 132(4) of the Income Tax Act. 4. We considered the submissions of the learned counsel for the parties and perused the reasons given in the impugned orders as well as reasons given in the case of Kailashben Manharlal Chokshi (supra). 5. It appears from the statement of facts that there was a search in the business premises of the petitioner's firm as well a .....

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..... he assessee, Shri Binod Poddar, the Assessing Officer had full jurisdiction to proceed for further enquiry and could have collected evidence in support of alleged admission of undisclosed income of the assessee. 6. We are of the considered opinion that statement recorded under section 132(4) of the Income Tax Act, 1961 is evidence but its reliability depends upon the facts of the case and particularly surrounding circumstances. Drawing inference from the facts is a question of law. Here in this case, all the authorities below have merely reached to the conclusion of one conclusion merely on the basis of assumption resulting into fastening of the liability upon the assessee. The statement on oath of the assessee is a piece of evidence as pe .....

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