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assessee was recorded on 6th composed at relevant point of
November 2001. The assessee was time.
given copies of the statement b) Amritsar ITAT Bench in Asstt. CIT
recorded under section 132(4)on v Janak Raj Chauhan[2006] 102
20th May 2002. On receipt of copy TTJ 316 (Asr.), observed that
of the statement, assessee realized admission made at the time of
that there was a mistake in the search is an important piece of
declaration of income. The assessee evidence, but the same is not
submitted a letter clarifying the conclusive. It is open to the
mistake on 21st June 2002 to the assessee to show that it is incorrect
Assessing Officer and retracted the and same was made under
statement made under mistake of mistaken belief of law and fact.
fact. The assessment was c) Hotel Kiran v. Asstt. CIT [2002]
accordingly made but was set aside 82 ITD 453 (Pune) – Admission by
by the CIT under sec. 263 stating a person is a good piece of
that the same was prejudicial to the evidence though not conclusive.
interest of the revenue and was The Legislature in its wisdom has
made by A.O. without application provided that such a statement
of mind. On appeal, ITAT held that under sec. 132(4) may be used as
the department has not brought on evidence in any proceedings under
record any corroborative the Act. However, there are
evidence so as to establish exceptions to such admission
undisclosed income having been where the assessee can retract
invested in agricultural land. from such statement/admission.
Statement of the assessee cannot The first exception exists where
be sole basis without any cogent such statement is made
and corroborative evidence. The involuntarily, i.e., obtained
mistake in the statement is under coercion, threat, duress,
immediately clarified on the receipt undue influence, etc. But the
of the statement by the appellant. burden lies on the person making
Moreover, no material/evidence such allegation to prove that the
was found during the course of statement was obtained by the
search action indicating on-money aforesaid means. The second
payment or any undisclosed exception is where statement has
investment in land. The statement been given under some mistaken
was given under mistaken belief belief either of fact or of law. If he
of law that the suppressed sale is can show that the statement has
unaccounted/undisclosed income been made on mistaken belief of
instead of correct legal position that facts, and the facts on the basis of
the gross profit arising from which admission was made were
unaccounted sale is the undisclosed incorrect.
income. Statement of Director 7. Principles of Natural Justice to be
indicate that he was not mentally
applied: ITAT, Jodhpur Bench in
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