Disclosure of additional income U/S 132(4)

 Examination on Oath by Authorized officers during search of any person found in possession or control of books, documents and valuables

 This examination can also be for any other matter relevant for any investigation under income tax act

 These statements have evidentiary value

 Undisclosed income confessed in this statement can be legally taxed even without evidences. However judicial decisions require it.

 Benefit of disclosure is in levy of penalty at lower rate

 Disclosure also reduces post search investigations

 CBDT circular no 286/2003 dated 10/03/2003 is against officers attempting disclosures without evidences

 Unbacked confessions can be retracted but within reasonable time