NAVDEEP DHINGRA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE appellant -assessee is before us challenging order dated 31.07.2012 passed by the Income Tax Appellate Tribunal, (hereinafter referred to as 'the ITAT'), Chandigarh, Bench 'A', order passed by the Commissioner of Income Tax(Appeals) (hereinafter referred to as 'the CIT(A)') as well as the assessment orders.

(2.) DURING a survey, under Section 133A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on the business premises of M/s. Oscar Remedies Pvt. Ltd., on 18.01.2006, the assessee who is admittedly a Director, declared additional income of Rs. 30 lacs relatable to unaccounted investment towards construction of the premises of M/s. Oscar Remedies Pvt. Ltd. This apart, the assessee declared an additional amount of Rs. 50 lacs attributable to excess cash, unaccounted investment in building and unaccounted investment in machinery relating to the company. After the survey, the assessee filed a return on 31.03.2007 declaring an income of Rs. 1,99,872/ -. The return was processed and eventuality in scrutiny proceedings initiated after serving notices under Section 143(2) and 142(1) of the Act and after appropriating requisite information namely, the account books vide order dated 26.12.2008, the assessee's statements, the assessment was concluded by adding Rs. 30 lacs to the income of the assessee.

(3.) COUNSEL for the assessee submits that as admittedly the appellant retracted his admissions, the retracted admissions/statement could not form the basis of additions without any corroborative evidence. Counsel for the assessee draws attention to Office Note (Annexure -A6) dated 26.12.2008, wherein, the Deputy Commissioner of Income Tax has recorded that no other incriminating document except the slip pad has been recovered by the revenue. Counsel for the assessee submits that though an admission is the best evidence of a fact but where an admission is made under coercion and pressure and is retracted, the revenue cannot place reliance upon such an admission and must, therefore, look for other evidence to prove its case. The absence of any other evidence renders the impugned orders which are based upon retracted statements made by the assessee null and void.