Law:

Section:

Section 132 of the Income-tax Act, 1961 - Search and seizure - General - Whether burden of proving that statement under section 132(4) was obtained by coercion or intimidation lies upon assessee - Held, yes - Search and seizure operations were conducted at assessee's residential and business premises - Assessee could not explain recovery of cash and jewellery and in his statement recorded under section 132(4) surrendered certain amount as his undisclosed income for block period and further expressed his willingness to pay taxes worked out on surrendered income - However, in response to notice issued under section 158BC, assessee filed a lower return contending that statement under section 132(4) was obtained under duress - Assessing Officer made assessment on basis of surrendered income - Whether when assessee did not retract his statement immediately after search and seizure was over and in return also no explanation was offered for surrender of undisclosed income at time of search and seizure operations under section 132(4), it could be said that assessee had failed to discharge onus of proving that confession made by him under section 132(4) was as a result of intimidation, duress and coercion or that same was made as a result of mistaken belief of law or facts - Held, yes - Whether, therefore, Assessing Officer was justified in assessing income of assessee on basis of surrender of undisclosed income made by assessees under section 132(4) - Held, yes FACTS The search and seizure operations were conducted at the business and residential premises of the assessee. In course of search, statement of the assessee was recorded under section 132(4) wherein he surrendered Rs. 30 lakhs as undisclosed income for the block period and offered that whatever taxes would be worked out on the surrendered income, he was prepared to pay the same. However, in response to the notice issued under section 158BC, he offered only Rs. 3,52,000 in his case and the aggregate amount of Rs. 2,05,500 in the case of his 3 sons as their undisclosed income. The Assessing Officer, however, completed assessment by including the amount of undisclosed income offered by the assessee besides…

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