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2017 (12) TMI 988 - AT - Income TaxUnexplained investment u/s 69 - suppression of value of stock - statement u/s 131 recorded - Held that:- Statement recorded u/s. 133A of the Act we find that no allegation of suppression of physical stock has been charged against the assessee. The addition has been made and sustained by Ld. CIT(A) merely on the basis of statement recorded during survey proceedings and Revenue has not pointed out any defect in the books of account / stock register maintained by assessee suggesting that assessee has suppressed the stock. In the absence of any documentary evidence, the addition cannot stand merely on the basis of statement recorded during survey proceedings From the survey proceedings, we find that prescribed format has not been used by the survey team. Therefore, the information gathered during survey proceedings cannot be relied upon. Simply the tax paid by assessee during survey proceedings does not mean that assessee has admitted undisclosed income. In our considered view, for finding out the undisclosed income of assessee there had to be tangible materials available on record which in the instant case are missing. We also find that the statement recorded during the survey proceedings u/s. 131 of the Act does not have any evidentiary value. Therefore, the same cannot be used as a basis for making such addition. The materials found in the course of survey could not be the basis for making any addition in the assessment. The word “may” used in section 133A(3)(iii) makes it clear that the material collected and statement recorded during the survey u/s 133A are not conclusive piece of evidences by itself. - Decided in favour of assessee.
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