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| The Tax Publishers2019 TaxPub(DT) 3175 (All-HC) : (2019) 308 CTR 0502 : (2019) 263 TAXMAN 0030 INCOME TAX ACT, 1961
Section 69
Where pursuant to search action, assessee had surrendered an amount in stipulation that details of the same would be given in due course of time, then no addition could be made to assessee's income for the said amount merely on the statement of assessee obtained during search action because no such assets were ever found/identified by revenue.
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Income from undisclosed sources - Addition under section 69 - Unexplained investment -
Pursuant to a search operation, cash, jewellery and other valuables were found and seized. Assessee filed its return and surrendered its undisclosed income on account of investment made in jewellery/precious stones and cash which was shown in the books of account. In respect of balance amount assessee submitted that due details would be given in due course of time. AO added back the said balance amount to the income of the assessee on the basis of statement given by the assessee under section 132(4). Held: The person making an admission is not always mindful of it and sometime can get out of its binding purview. If the person can explain exclusive with supportive evidence/material or otherwise that the admission by him earlier is not correct or contain a wrong statement or that a true state of affairs is different from that represented therein and so the same should not be accepted upon forecasting tax liability which should rather be fixed on the basis of correct and true affairs as ascertained from the material on record. No incriminating materials or documents were brought on record for said amount of addition made by AO. Neither there such assets were identified or declared by assessee, thus, it could be inferred that no such assets actually existed.
REFERRED : Ravindra Kumar Verma v. CIT (2013) 30 taxmann.com 367 (All.) Vertex Chemical Industries v. ITAT [IT Appeal No. 250 of 2000, dt. 27-9-2016
FAVOUR : In assessee's favour
A.Y. :
IN THE ALLAHABAD HIGH COURT
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