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TMI Blog2012 (6) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... of a statement obtained in the course of survey action u/s 133A, which has been later on retracted. Consequently, revision orders passed u/s 263 for AY 2000-01 and 2003-04 also do not survive - Decided in favor of assessee. - IT Appeal Nos. 575 to 589 (Mds.) of 2011 - - - Dated:- 23-4-2012 - DR. O.K. NARAYANAN, CHALLA NAGENDRA PRASAD, JJ. K. Balasubramanian for the Appellant. Yogesh Kamat for the Respondent. ORDER 1. This is a bunch of 15 appeals. These appeals are filed by assessees who are husband and wife. The assessee-husband, Dr. J. Mohan is a surgeon who is running Lakshmi Hospital at Villupuram. Smt. M. Maheswari, the wife is running a proprietary pharmacy business in the hospital. Both husband and wife are regu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .147. In the case of Dr. J. Mohan, the additions made by the assessing authority in the reopened assessments, mainly related to disallowance of interest on loans and the estimated disallowance of running expenses and depreciation of motor cars. For the assessment year 2000-01, the Assessing Officer has also made an addition under sec.69 as unexplained investment made in jewellery. For the assessment year 2003-04, the assessing authority has made another addition towards unexplained cost of construction. The Assessing Officer has also made another addition for the assessment year 2004-05 against the expenses incurred by the assessee towards trip to USA. 6. In the case of Smt. M. Maheswari, the additions relate to disallowance of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2005] 97 ITD 361 (Ahd.) 9. Shri Yogesh Kamat, the learned Jt. Commissioner appearing for the Revenue defended the income escaping assessment orders. He explained that the survey conducted by the Department has brought out materials towards certain items of income escaped in the hands of the assessees. Even if, the reasons relied on by the Assessing Officer to reopen the assessments were later found to be unsustainable, still, the reopening of the assessments as such, does not have become vitiated. As far as these cases are concerned, the Assessing Officer has proceeded strictly in accordance with law and, therefore, the legal objection raised by the assessees is not sustainable in law. 10. We considered the legal objection carefull ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e used in evidence under the Income-tax Act. The court held that whatever statement recorded under sec.133A of the Income-tax Act is not given an evidentiary value. 12. The Hon'ble Jurisdictional High Court in the case of S. Khader Khan Son ( supra ) had considered the very same issue. The Hon'ble High Court has laid down the principles relating to sec.133A as follows : "( i ) An admission is an extremely important piece of evidence but it cannot be said that it is conclusive and it is open to the person who made the admission to show that it is incorrect and that the assessee should be given a proper opportunity to show that the books of account do not correctly disclose the correct state of facts ; ( ii ) In contradistinction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the case, no reliance can be placed on the statement obtained in the course of that survey as held by the courts in the decisions mentioned above. When the statements made by the assessees here, later retracted, do not have any evidentiary value, there is no basis in holding that there are materials available before the Assessing Officer to make out cases of escapement of income. A reason must be formed by the Assessing Officer to reopen an assessment on the basis of material or information recognized under law. Even if reassessments are held to be valid, still no additions could be made on the basis of those statements. In such circumstances, it is obvious that the reassessments would only be an empty formality. A provision of a statut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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