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2019 (3) TMI 1347 - AT - Income TaxAddition based on statement u/s 131(1) of managing partner - GP rate at 15% - No rejection of books of accounts - Account audited u/s 44AB - no independent corroborative evidences - HELD THAT:- In this case, the books of account of the assessee were required to get audited u/s. 44AB. It is an admitted fact that books of account of the assessee had not been rejected by the AO. However, the AO relied on the statement of managing partner of the assessee recorded u/s. 131(1) for the purpose of framing the assessment. CBDT has emphasized on its officers to focus on gathering evidences during search/survey operations and strictly directed to avoid obtaining admission of undisclosed income under coercion/under influence. Keeping in view the guidelines issued by the CBDT from time to time regarding statements obtained during search and survey operations, it is undisputedly clear that the lower authorities have not collected any other evidence to prove that the impugned income was earned by the assessee. Without commenting on the authenticity of the statement by the managing partner of the assessee Shri Tomy C. Vadayil, we are of the opinion that there is no corroborative evidence to support the claim made by the Assessing Officer. Even otherwise, uncorroborative statements collected by the Assessing Officer cannot be an evidence for sustenance of addition made by the Assessing Officer. We are of the view that the statement recorded u/s. 131 cannot be independently used for making any addition in the hands of the assessee and the said statement cannot, in our view, be the sole basis for making any addition and must be independently corroborated by evidences. Thus, we are of the view that the legal position that emerges is that a sworn statement, though binds the assessee, it cannot be the sole basis for making the assessment. It is open to the assessee to show the circumstances in which confessional statements were recorded and once the assessee proves that confessional statements were recorded under threat and coercion and retracts from the same, the confessional statements cannot be the sole basis for making assessments or for making any addition in the hands of the assessee. AO has made the addition only on the basis of sworn statement of the managing partner. Accordingly, we dismiss the ground taken by the Revenue. The appeal of the Revenue is dismissed.
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