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Survey, Search & Seizure | 17 |taking hefty disclosures backed by cheques (and ironically, not byincriminating material), which disclosures would lateron fall upondue to retraction.In order to put an end to all such confessional statements, theCBDT vide instruction dated 10th March 2003, has instructed thesubordinate officers to focus and concentrate on collecting evidenceof income which is not disclosed or is not likely to be disclosedrather than record an unsubstantiated statement. The instruction isreproduced hereunder:-Instruction dated 10th March, 2003 vide No. f No. 286/2/2003/IT(Inv):“ToAll Chief Commissioner of Income Tax (Cadre Contra) &All Directors General of Income Tax Inc.Subject: Confession of additional Income during the course of search &seizure and survey operation regarding.Instances have come to the notice of the Board where assessee have claimedwhat they have been forced to confess the undisclosed income during thecourse of the search & seizure and survey operations. Such confessions,if not based upon credible evidence, are later retracted by the concernedassessees while filing returns of income. In there circumstances, onconfessions during the course of search & seizure and survey operations donot serve any useful purpose. It is, therefore, advised that there should befocus and concentration on collection of evidence of income which leads toinformation on what has not been disclosed or is not likely to be disclosedbefore the Income Tax Department. Similarly, while recording statementduring the course of search & seizure survey operations no attempt shouldbe made to obtain confession as to the undisclosed income. Any action onthe contrary shall be viewed adversely.Further, in respect of pending assessment proceedings also, assessingofficers should rely upon the evidence/materials gathered during thecourse of search/seizure operations or thereafter while framing the relevantassessment orders.www.taxguru.in