MOHAMMAD RAFIQ, J.

1. This income tax appeal pertaining to assessment year 2013-14 under Section 260A of the Income Tax Act, 1961 has been filed by the appellant-revenue assailing judgment dated 15.09.2017 passed by the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (for short ‘the Tribunal’) whereby the appeal filed by the respondent-assessee was allowed and appeal filed by the appellant was dismissed.

2. This appeal was admitted by this Court vide order dated 10.04.2018 on the following substantial question of law:

“(1) Whether on the facts and circumstances of the case of in law the Hon’ble ITAT was correct in upholding the decision of the CIT(A) and further deleting the addition of surrendered income by observing that affidavit of retraction filed by the assessee on 19.05.2013 has not been examined by the AO at any stage despite the facts that income surrendered in the statement under Section 132(4) of the Income Tax Act, 1961 dated 26.09.2012 was affirmed by the assessee in the statement recorded u/s 131 of the Income Tax Act on 15.10.2012?”

3. The skeletal facts essential for deciding the appeal are that search and seizure proceedings under Section 132 of the Act w