Retracted Statement Can't Be Termed As Incriminating Material, No Addition Can Be Made In Respect Of Completed Assessment: Gauhati High Court
Mehak Dhiman
18 March 2025 10:20 AM
The Gauhati High Court stated that retracted statement cannot be termed as incriminating material and no addition can be made in respect of completed assessment.
The Commissioner of Income Tax (Appeals) and the ITAT were of the view that the said piece of evidence, i.e. retracted statement cannot be termed as incriminating material, noted the Division Bench of Chief Justice Vijay Bishnoi and Justice Kaushik Goswami.
In this case, the assessee/respondent submitted Income Tax Returns under Section 139(1) of the Income Tax Act, 1961 declaring income of Rs.2,00,080/-. However, a search and seizure operation were conducted on the residential premises of the assessee.
On the basis of the search results, the case was selected for scrutiny under Section 153A of the Income Tax Act and a notice was issued to the assessee to file Return of Income within 15 days.
In compliance of the notice, the assessee e-filed his return of income and thereafter, proceedings were carried out and ultimately, the Assessing Officer has issued Assessment Order and assessed the income of the assessee at Rs.4,25,30,080/-.
Being aggrieved with the Assessment Order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), Guwahati under Section 250 of the Income Tax Act.
The Commissioner of Income Tax (Appeals) allowed the appeal. The department/appellant preferred an appeal, before the ITAT. The ITAT affirmed the findings of the Commissioner of Income Tax (Appeals).
The department/appellant has challenged the order passed by the Income Tax Appellate Tribunal, Guwahati Bench, Guwahati.
The assessee/respondent submitted that it is well settled that in the absence of incriminating material, no addition can be made in respect of a completed assessment.
The department/appellant submitted that the Assessing Officer has invoked Section 153A of the Income Tax Act on the basis of the incriminating material only and not otherwise.
The bench observed that the Commissioner of Income Tax (Appeals) as well as ITAT, after carefully scrutinizing the material collected by the Assessing Officer, has recorded a finding of the fact that other than the retracted statement no other evidence/material was relied upon by the Assessing Officer to invoke the addition.
In view of the above, the bench dismissed the appeal.
Case Title: The Principal Commissioner of Income Tax v. Rohit Karan Jain
Case Number: ITA/5/2023
Counsel for Appellant/ Department: S.C. Keyal
Counsel for Respondent/ Assessee: P. Jain