KAILASHBEN MANHARLAL CHOSHI Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF GUJARAT
KAILASHBEN MANHARLAL CHOSHI
COMMISSIONER OF INCOME-TAX
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(1.) THE Income-tax Appellate Tribunal has referred the following question of law under Section 256 (1) of the Income-tax Act, 1961 or opinion of this Court. "whether on the facts and circumstances of the case, the Tribunal was right in law in confirming addition of Rs. 7 lacs as disclosed in statement Under Section 132 (4) of the Act but retracted thereafter?"
(2.) DURING the pendency of this reference before this Court the assessee expired and hence his legal heirs are brought on record vide order dated 9. 7. 2008 in Civil Application No. 143 of 2008. The assessment year in question is assessment year 1989-90. The assessee is a partner of M/s. Chokshi Kasturchand Dalaji and Sons. A search under Section 132 was conducted on the premises of the said firm and the partners thereof including the assessee on 4. 11. 1988. A statement of the assessee under Section 132 (4) was recorded and during the course of the statement, the assessee made a disclosure of Rs. 7 lacs as follows:-JUDGEMENT_2435_TLGJ0_2008Html1.htm
(3.) LATER on in January, 1989 the assessee retracted from the disclosure and stated that the disclosure of Rs. 50,000/- only was acceptable to him. It was submitted before the Assessing Officer that the disclosure of Rs. 7 lacs was made under pressure and coercion and that no note should be taken of it while completing the assessment. Noting that the disclosure of Rs. 7 lacs was made under Section 132 (4) in November, 1988 and the assessee retracted from the same only in January, 1989 i. e. after a lapse of two months, the Assessing Officer held that, the assessee did not have any reason for retracting from the disclosure made under Section 132. Further vide his detailed order the Assessing Officer gave supporting reasons for making an addition of Rs. 7 lacs representing income disclosed by the assessee under Section 132 (4 ). Thus, an addition of Rs. 7 lacs was made by the Assessing Officer to the income declared by the assessee.;
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