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TMI Blog2016 (4) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on the basis of statement recorded during survey under section 133A-Sect. 133A does not empower any IT Authority to examine any person on oath, hence, any such statement has no evidentiary value and any admission made during such statement cannot, by itself, be made the basis for addition”. Thus we are of the considered opinion that the addition made on the basis of the statement in the present case recorded u/s. 133A is not sustainable in the eyes of law, hence, we delete the addition - Decided in favour of assessee. - I.T.A. No. 6509/DEL/2014 - - - Dated:- 8-3-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Assessee : Dr. Rakesh Gupta, Adv. Sh. Somil Aggarwal, CA For The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that my Group has earned undisclosed income of ₹ 70 lacs during the Financial Year 2009-10 from various sources which he wanted to surrender in the hands of his Group Companies, himself and his immediate family members over and above the income from all the sources accounted for till date and ready to pay taxes on this undisclosed income of ₹ 70 lacs subject to condition that no penalty proceedings will be initiated. After considering the reply filed by the Assessee as well as other documentary evidence in response to the notices issued by the AO, the AO made the addition of ₹ 70 lacs to the income of the assessee company on the basis of the Statement recorded u/s. 133A of the Act and completed the assessment on 18.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded u/s. 133A of the Act is not sustainable, in view of the following case laws, which were mentioned in the Assessee s Paper Book. - CIT vs. S. Khader Khan Son 214 CTR 589 (Mad.). - Unitex Products Ltd. vs. ITO (2008) 22 SOT (Mumbai) - CIT vs. P. Balasubramanian 354 ITR 116 (Mad.) - ITO vs. Ram Prakash ITA No. 61/Agra/2013 dated 18.7.2014. - Mahesh Ohri vs. ACIT 23 ITR (T) 522 - Abhi Developers vs. ITO (2007) 12 SOT 444 (Ahd.) - Ravinder Kumar vs. DCIT (2009) 33 SOT 251 (Del.) - DCIT vs. Premsons 37 DTR 150 (Mumbai B ) - CIT vs. Digambar Kumar Jina (HUF) 84 DTR 365 (MP) - ACIT vs. Safe Enterprises (2011) 128 ITD 459 (Mum) 6.1 He also draw our attention towards the CBDT s Letter issued vide F.No. 286/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 70 lacs was made by the AO on the basis of statement of Mr. Ajay Singhal at the time of survey recorded u/s. 133A of the I.T. Act. We find considerable cogency in the Ld. Counsel of the assessee s submissions that addition cannot be made on the basis of the statement recorded during the survey under section 133A of the Act, in view of the various judicial decisions wherein, it has been held that such statement does not have any evidentiary value, especially the decision of the Hon ble Madras High Court in the case CIT vs. S. Khakder Khan son reported in {2008) 300 ITR 157 (Madras) wherein, it has been held that Addition on the basis of statement recorded during survey under section 133A-Sect. 133A does not empower any IT Authority to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fess the undisclosed income during the course of the search seizure and survey operations. Such confessions, if not based upon credible evidence, are later retracted by the concerned assessees while filing returns of income. In these circumstances, on confessions during the course of search seizure and survey operations do not serve any useful purpose. It is, therefore, advised that there should be focus and concentration on' collection of evidence of income which leads to information on what has not been disclosed or is not likely to be disclosed before the Income Tax Departments. Similarly, while recording statement during the course of search it seizures and survey operations no attempt should be made to obtain confession as to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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