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2023 (3) TMI 547 - AT - Income TaxUnexplained investment - addition made on the basis of surrender/admission made by the assessee in his statement recorded during the course of survey - Whether addition to the income of the assessee cannot be made in the absence of any positive evidence solely on the basis of confessional statement recorded during the survey proceedings? - HELD THAT:- In the present case, the assessee has, with evidence demonstrated actual investment made in the impugned property. No infirmity has been pointed out by the Revenue in the said documents. Therefore, statement recorded during survey can safely be stated to be retracted duly evidenced with documentary evidence, and in such circumstances, the statement of the assessee recorded u/s 133A of the Act carries no evidentiary value. The Hon’ble apex court in the case of CIT, Salem vs S. Kader Khan [2013 (6) TMI 305 - SC ORDER] has held that statement recorded u/s 133A of the Act has no evidentiary value and cannot be made basis of addition. Hon’ble jurisdictional High Court in series of decisions has held that solely on the basis of statement recorded which was subsequently retracted with evidence, no addition could be made in the absence of any other corroborative material with the Revenue. That such addition was simply on the basis of surmises and conjectures and thus unsustainable in law. Thus we hold that addition made of unexplained investment solely on the basis of admission of the assessee is unwarranted and direct the same to be deleted. Appeal of the assessee is allowed.
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