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2020 (10) TMI 976 - AT - Income TaxAddition of on-money in cash from the buyers of various flats - unexplained cash u/s 68 - Addition made by the A.O. by simply relying upon the sworn statement made u/s 132(4) of Director of the assessee company - assessee stated that he himself stated in his statements recorded U/s 132(4) of the Act during the course of search as well as past search proceedings - CIT-A deleted the addition - HELD THAT:- CBDT had issued instructions wherein it has been instructed that no surrender should be obtained and assessment should be completed not on the basis of such surrender but on the basis of material gathered during search. However, in the present case, the A.O. had made additions solely on the basis of solitary statement made by the Director of the assessee. Even the Hon’ble Jurisdictional High Court of Rajasthan in the case of CWT vs. Sanwarmal Shivkumar [1987 (9) TMI 26 - RAJASTHAN HIGH COURT] has held that the officers of the Department are bound by the circulars of the board. Mere admission is not conclusive as to the truth of the matter. It is only a piece of evidence, the weight to be attached to which must depend on the circumstances in which it is made. It can be shown to be erroneous or untrue. Therefore, addition made merely and solely on the basis of confession without any corroborative evidence was not sustainable in law and moreover the said confession made by the assessee was subsequently retracted and since the addition was not supported by any cogent, convincing independent documentary evidence, therefore, the same was correctly found to be not sustainable by the ld. CIT(A). No new facts and circumstances have been brought before us in order to controvert or rebut the findings so recorded by the ld. CIT(A), therefore, we see no reason to interfere or deviate from the findings so recorded by the ld. CIT(A). Therefore, we uphold the order passed by the ld. CIT(A) qua this issue. - Decided in favour of assessee.
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