“survey under section 133A”
The decision most relied on for survey under section 133A is CIT v. S. Khader Khan Son (352 ITR 480), cited in 581 judgments on BharatTax.
Leading authorities on survey under section 133A
Statements recorded during a survey under Section 133A do not have evidentiary value as Section 133A does not empower examination on oath. Consequently, additions to income cannot be made solely based on such uncorroborated statements without other credible evidence.
A statement recorded under duress during a survey, if subsequently retracted, has no evidentiary value and cannot be the sole basis for an income-tax assessment; the assessment should instead rely on audited accounts.
A statement recorded under Section 133A of the Income-tax Act has no evidentiary value because Section 133A does not empower an Income-tax Officer to examine any person on oath.
No penalty under section 271(1)(c) can be imposed if the amount of tax sought to be evaded is nil under Explanation 4(c), such as when the assessment results in a refund even after an addition to income. The conditions stipulated in the explanations to section 271(1)(c) must be unambiguously met for penalty imposition.
Statements recorded and materials collected during a survey under Section 133A are not made on oath, unlike those under Section 132(4), and thus are not conclusive evidence; an income addition cannot be made solely based on such statements.
Additions made for amounts surrendered during a search or survey operation are justified if the assessee fails to provide a satisfactory and bona fide explanation for the surrendered amount or to substantiate its retraction.
A statement recorded under section 133A, though not possessing the same evidentiary value as a sworn statement under section 132(4), cannot be considered irrelevant material and can be relied upon, especially when the assessee fails to produce regular books of account.
A statement made or income surrendered during search or survey proceedings, especially if later retracted, requires corroborating evidence to form the basis of an assessment, aligning with CBDT instructions to focus on evidence collection rather than confessions.
