The Tax Publishers2020 TaxPub(DT) 0322 (Mum-Trib)

INCOME TAX ACT, 1961

Section 133A

Statement recorded during survey has no evidentiary value where there is no corroborative materials/evidences in the instant case.

Survey - Addition on the basis of statement recorded during survey - Evidentiary value - No corroborative material evidence

Assessee was a group concern of Kamla Group and out of the loose papers impounded from premises of M/s. Kamala Group three pages were identified as belonging to assessee firm M/s. Mathura Enterprises wherein entries of cash transactions were recorded on various dates. Mr. Ketan A. Shah who was associated with M/s. Kamala Group, admitted that said cash was over and above what had been accounted for in books of account and was received in order to incur expenses which could not be accounted for in books of account. Accordingly, AO made addition on account of unexplained cash credit under section 68. Held: Statement recorded during survey has no evidentiary value where there is no corroborative materials/evidences. In the instant case documents impounded during survey was unsigned, unauthenticated and uncertified by either any of the partners or employees of assessee firm, Mr. Ketan Shah whose statement was recorded during survey under section 131 at the premises of M/s. Kamala group stated that he was connected with various group concerns and deriving income by way of salary, share of profit, interest on capital and remuneration from the firm, but nowhere his activity with assessee firm was established and nowhere it was stated that said pages belonged to assessee. Accordingly, addition on the basis of dumb document without bringing any corroborative material evidence in support thereof, was not sustainable.

Distinguished:Kale Khan Mohammad Hanif v. CIT (1963) 50 ITR 1 (SC) : 1963 TaxPub(DT) 420 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12



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