Case Law Details
Brief of the Case
Delhi High Court held In the case of The CIT vs. Sunil Aggarwal that the Assessee had an explanation for not retracting the statement earlier. He also furnished an explanation for the cash that found in the hands of his employee and this was verifiable from the books of accounts. In the circumstances, it was not open for the AO to proceed to make additions solely on the basis of the statement made under Section 132(4), which was subsequently retracted.
Facts of the Case
The Assessee is engaged in the business of plastic raw material and is carrying on the business in the names of two proprietorship concerns, M/s Polychem Traders and M/s Petrochem Overseas (India). In addition, the Assessee was a Director in Petro Impex (India) P. Ltd and Par Petrochem Ltd. A search and seizure operation was conducted on 20th June 1996 at the residential and business premises of the Assessee as well as his associate concerns and it continued till 30th July 1996. The case of the Revenue is that despite notice issued on 30th September 1996 to the Assessee under Section 158BC of the Act, requiring him to file a return of total income including the undisclosed income for the block period, the Assessee failed to do so. Ultimately, after a gap of eight months, he filed a return on 9th June 1997. In this return, the Assessee declared an income of Rs.24,50,310 for the various assessment years of the block period. The assessment was completed under Section 158 BC (1) at an undisclosed income of Rs. 3,71,79,576
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