“Section 184(4)”

The amendment made to Explanation 4 to Section 271(1)(c)(iii) with effect from 1st April 2003 is clarificatory and has retrospective effect, allowing for the levy of penalty under Section 271(1)(c) even in cases of loss returns.

The Income Tax Appellate Tribunal (ITAT) cannot enhance an assessment or take back a benefit granted by the Assessing Officer.

An assessment cannot be made solely based on a statement that is subsequently retracted, even if belatedly. If two possible views exist, the one favouring the assessee should be preferred.

A statement made under section 132(4) of the Income Tax Act, 1961, can be used to make an addition even if it is retracted later, provided there is corroborative evidence. The Assessing Officer is not bound by the retraction of a statement made during search proceedings.