2025 (4) TMI 410

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..... spondent : Ms. S. Brindaa for Mr. Karthik Ranganathan. JUDGMENT DR. ANITA SUMANTH., J. The substantial questions of law that arise for decision are as follows:- "a) Whether a statement given by a assessee during search is admissible in the absence of any material or evidence found during the search? b) Whether the provision to Sec. 113 of IT Act providing for surcharge is prospective or .....

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..... As far as substantial question no.1 is concerned, the facts are as follows. The issue in question relates to whether an amount of Rs. 9 lakhs may be brought to tax as undisclosed income of the appellant. 5. Admittedly, in the course of search, a statement was recorded from the appellant admitting to a sum of Rs. 20 - Rs. 25 lakhs having been advanced as loans, to friends & relative .....

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..... loan, the assessing authority has brought to tax only a sum of Rs. 9 lakhs. In any event, the order of assessment does not reveal the existence of any incriminating material barring the statement recorded, to confirm on the basis on which the addition could have been made. Section 158BC requires that any addition made as undisclosed income must flow from the incriminating materials found in .....

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