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2019 (10) TMI 903 - AT - Income TaxAddition merely on the basis of a statement recorded during survey u/s. 133A - HELD THAT:- Addition made by the AO in the course of assessment proceedings merely on the basis of statement in course of search and post search proceedings is not sustainable. In DIGAMBAR KUMAR JAIN (HUF) [2012 (11) TMI 1167 - MADHYA PRADESH HIGH COURT] held in this case that the AO made an addition merely on the basis of a statement recorded during survey u/s. 133A of the IT Act and ld. CIT(A) and the Tribunal had deleted it by holding that merely on the basis of such statement without corroboration, such addition could not be made and when the appeal was filed by the revenue against this Tribunal order before the Hon’ble Madhya Pradesh High Court, the same was dismissed by Hon’ble Madhya Pradesh High Court. In this case, the Tribunal held that the income is not taxable in the hands of the assessee in view of principle of mutuality and since in the present case, mutuality aspect is not there, this Tribunal order on this aspect is not relevant in the present case but this Tribunal order is relevant regarding this aspect that merely on the basis of the statement recorded during the course of search, an addition cannot be made blindly and the same has to be examined as per the relevant facts and law. In the present case also, although some papers were found and seized and surrender was also made by assessee up to ₹ 93 Lakhs out of amount noted in seized paper of ₹ 1,39,08,062/-, neither the AO nor ld. CIT(A) has corroborated the amount of addition with the entries in the seized material even on sample basis to show that the entry in the seized material is in fact regarding some undisclosed income of the assessee. The surrender of the assessee of ₹ 93 Lakhs is also not correlated with the seized material - we hold that the addition made by the AO and confirmed by CIT(A) merely on the basis of statement without establishing that the entry on the seized paper is indicating any undisclosed income of the assessee is not sustainable and hence, we delete the same. Unexplained investment in gold bullion - HELD THAT:- As per the balance sheet as on 31.03.2009 of Shri Somashekar available on page no. 14 of the paper book, there is capital balance of ₹ 16,06,085/- and there is investment in gold bullion of ₹ 11,43,320/- and similarly, as per the balance sheet of Shri K. Chandrashekar (HUF) as on 31.03.2009 available on page no. 18 of the paper book, there is capital of ₹ 31,28,398/- and investment in gold bullion of ₹ 11,43,320/-. Under these facts, we are of the considered opinion that the addition made by the AO on this account is also not sustainable and hence, we delete the same because in our opinion, restoring the matter back to AO in the facts of the present case is not required. Ground nos. 6 and 7 are also allowed.
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