M/S VARUN TRADERS,AMRITSAR vs. DEPUTY COMMISSIONER OF INCOME TAX , AMRITSAR
Facts
During a survey, the assessee made a voluntary surrender of Rs. 266 Lacs for undisclosed investments based on entries in an impounded diary. The surrender was later retracted, claiming it was made under pressure. The Assessing Officer rejected the retraction and added the amount as undisclosed income.
Held
The tribunal held that a statement recorded under Section 133A has no evidentiary value if retracted shortly after, especially without corroborative evidence. It deleted the addition of Rs. 266 Lacs, emphasizing that additions cannot be based solely on retracted statements or suspicion.
Key Issues
Can an addition be sustained solely based on a retracted statement made during a survey under Section 133A without corroborative evidence? What is the evidentiary value of statements recorded under Section 133A?
Sections Cited
Section 133A, Section 143(1), Section 143(3), Section 144A
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Income Tax Appellate Tribunal, “DB” BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & SHRI UDAYAN DASGUPTA, JM
आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF
ASSISTANT REGISTRAR
ITAT AMRITSAR