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Even confessed undisclosed income cannot be assessed
Where during a survey, the assessee surrendered an amount of Rs. 29 lakhs towards “any other discrepancy” but later retracted from the same and the question arose whether the assessee could be assessed despite the said retraction, HELD:
(a) While conducting a survey u/s 133A the department has no power to examine any person on oath. Consequently, such a statement has no evidentiary value and no addition can be made solely on the basis of such statement;
(b) The CBDT is not oblivious of the practice of obtaining forced confessions and accordingly Circular dated 10.3.2003 makes it clear that no attempt should be made to obtain confessions of undisclosed income;
(c) On facts, as there was no other material to show undisclosed income nor were there any ‘discrepancies’ the addition could not be sustained.
See Also: Vinod Solanki vs. UOI (Supreme Court) (law on retraction of confessions) and Bhuvanendra 303 ITR 235 (Mad.)
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