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2019 (3) TMI 1157 - AT - Income TaxAddition based on statement recorded on oath u/s. 133A - Assessee had offered additional income from merchant trading from China to USA and income from wind turbine at Tamilnadu - no incriminating material was found in the survey - assessee retracted disclosure stating that it was purely adhoc disclosure and the income & expenses relating to merchant trading as well as turbine project was properly recorded in the books of accounts - HELD THAT:- The factual matrix that assessee’s own funds were far in excess of investments made by the assessee remain unrebutted. Nothing has been placed on record to controvert the findings in impugned order. So far as expense disallowance is concerned, we find that the disallowance has been restricted to the extent of exempt income earned by the assessee which is in line with the settled legal positions. Therefore, finding no infirmity in the impugned order, we dismiss this ground of revenue’s appeal. No incriminating material was found in the survey proceedings and the additions were made merely on the basis of statement given by the director without bringing on record any evidences either during survey proceedings or during assessment proceedings. It was further noted that these statements made during survey proceedings, on standalone basis, would have no evidentiary value in terms of case of S. KHADAR KHAN SONS [2007 (7) TMI 182 - MADRAS HIGH COURT] confirmed by SC [2013 (6) TMI 305 - SUPREME COURT] Evidentiary value unless supported by certain circumstantial evidences and therefore, the reliance of first appellate authority on cited binding judicial pronouncements to arrive at the conclusion was quite appropriate and no infirmity could be found in the same. Another important factor to be noted is that the stated transactions were carried out through banking channels and duly recorded in the books of accounts which were subject to Audit. The complete details of these transactions along with relevant documentary evidences was placed by the assessee before AO and therefore, fully discharged the onus casted upon assessee, in this regard. - Decided against revenue.
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