In [2017] 10 ITR-OL 539 (Raj) when the assessee was asked to produce the donor she finally agreed to surrender the amount during assessment and even in the upfront paid an installment of tax thereon on the condition that no penalty be levied upon her. Later she went on to file an appeal against such addition alleging that the AO put pressure and coercion on the appellant being a lady and there was no alternate except to surrender the said amount but the same was retracted by filing of the appeal.
The High Court held that the retraction, if any, ought to have been as soon as possible and not to await till an order is passed. Secondly the Court held that the retraction, if any, is required to be made by the appellant by a duly sworn affidavit supported by convincing evidence demonstrating that the statement initially recorded was under pressure/coercion and was factually incorrect