The assessee-company received share application money/share premium from its Managing Director and one company.  The AO observed that on basis of statement recorded by Investigation Wing of department of one MS u/S.131 it was found that share application money/share premium received by assessee was nothing but accommodation entries. On basis of said statement, AO made additions u/S.68.  It was noted that impugned addition was made only on basis of statement of MS recorded by Investigation Wing u/S.131.

On appeal Tribunal held that other than statement of MS, no other material evidence was referred either by AO or CIT(A).  U/s.131, authorities are not empowered to administer oath to deponent, therefore, such a statement recorded u/s.131 had no evidentiary value.  Hence, addition made merely on basis of statement recorded u/s.131 without there being any other material available on record, was unjustified. (AY 2013-14, 2015-16)