Income Tax - Admissions of Undisclosed Income under coercion/pressure during Search/Survey - CBDT Instructions
INSTANCES/complaints of undue influence/coercion have come to notice of the CBDT that some assessees were coerced to admit undisclosed income during Searches/Surveys conducted by the Department. It is also seen that many such admissions are retracted in the subsequent proceedings since the same are not backed by credible evidence. Such actions defeat the very purpose of Search/Survey operations as they fail to bring the undisclosed income to tax in a sustainable manner leave alone levy of penalty or launching of prosecution. Further, such actions show the Department as a whole and officers concerned in poor light.
Board had issued instruction from time to time which had emphasized upon the need to focus on gathering evidences during Search/Survey and to strictly avoid obtaining admission of undisclosed income under coercion/undue influence.
Board has reiterated the guidelines and conveys that any instance of undue influence/coercion in the recording of the statement during Search/Survey/Other proceeding under the I.T.Act, 1961 and/or recording a disclosure of undisclosed income under undue pressure/coercion shall be viewed by the Board adversely.
Board requests the senior officers to closely observe/oversee the actions of the officers functioning under them in this regard.
CBDT Instruction in F.No. 286/98/2013-IT(Inv.II)., Dated: December 18, 2014