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| The Tax Publishers2019 TaxPub(DT) 1897 (Coch-Trib) : (2019) 175 ITD 0607 : (2019) 199 TTJ 0758 INCOME TAX ACT, 1961
Section 131 Section 133A
Statement recorded under section 131 not supported by corroborative material could not be the sole basis to make addition on account of shortfall in gross profit as attempted by AO that too without rejecting assessee's books.
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Survey - Statement recorded during survey - Evidentiary value - No corroborative material
Survey was conducted at business premises of assessee-firm. Statement under section 131 was recorded by AO from the managing partner who admitted that assessee had shown gross profit at 10.55% instead of 15%. Accordingly, AO made addition on account of shortfall in gross profit. Held: An admission is extremely an important piece of evidence but it cannot be said that it is conclusive and it is open to the person who made admission to show that it is incorrect, AO, in the instant case made addition only on the basis of sworn statement of managing partner not supported by corroborative material and without rejecting assessee's books. In such circumstances the addition could not be sustained.
Relied:Paul Mathews and Sons v. CIT (2003) 263 ITR 101 (Ker.) : 2003 TaxPub(DT) 1040 (Ker-HC), Pullengode Rubber Produce Co. Ltd. v. State of Kerala (1973) 91 ITR 18 (SC) : 1973 TaxPub(DT) 0089 (SC), Satinder Kumar (HUF) v. CIT (1977) 106 ITR 64 (HP) : 1977 TaxPub(DT) 0461 (HP-HC), Avadh Kishore Das v. Ram Gopal AIR 1979 SC 861, Vinod Solanki v. Union of India (2009) 92 SCL 157 (SC) : 2009 TaxPub(CL) 0332 (SC) and CIT v. S. Khader Khan Son (2008) 300 ITR 157 (Mad.) : 2008 TaxPub(DT) 0790 (Mad-HC).
REFERRED :
FAVOUR : In assessee's fvour.
A.Y. : 2014-15
IN THE ITAT, COCHIN BENCH
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