Income Addition Rejected: No Evidence Found in Search Operation, Surrender Statement Deemed Insufficient Under Section 132(4)

ITAT held that the addition to income based on search operation surrender cannot be sustained. No incriminating material was found during search and seizure action at assessee's premises. The statement under Section 132(4) was retracted with detailed explanations, and seized documents did not reveal any undisclosed transactions. The Assessing Officer cannot make additions solely on an unsupported alleged surrender, especially when no evidence substantiates the claim. Under the new legal framework for search assessments, incriminating material is mandatory for reopening assessments beyond three years. The tribunal ruled in favor of the assessee, effectively rejecting the revenue's proposed income addition. .....

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