When assessee makes confession in a statement during search & later retracts without furnishing any reasons, additions can still be made

It is noteworthy that quite apart from such statement dated 19.1.06, at the time of search, the assessee had made yet another confessional statement on 28th March 2006. He had never referred to such a statement in his retraction. He did not offer any explanation why quite apart from the statement made at the time of search operation, he had two months later repeated his offer. The authorities have further recorded that both the statements were made in presence of the Chartered Accountant of the assessee. In addition to such circumstances, the Commissioner (Appeals) noted that the appellant was not maintaining personal books of accounts. The assessee’s contention was that source of investment in furniture and fixtures was withdrawal from the firm, but the books of accounts of the firm were rejected under section 145 of the Act due to specific defects found by the Assessing Officer.

 In short, the Revenue authorities and the Tribunal on the basis of evidence on record came to the conclusion that the addition of Rs.50 lacs was justified.