Assessee is  engaged in manufacture of high-pressure seamless cylinders.  Pursuant to search and seizure operations of group concerns of assessee, Assessing Officer on basis of statement made by a director of assessee  held that assessee-company siphoned off cash by issuing cheques against bogus capital expenses debited in accounts of assessee-company.  Accordingly, he made an addition on account of bogus purchases which was confirmed by Commissioner (Appeals). Tribunal  held that capitalization could not be denied to assessee merely on a statement given by director of assessee, without adducing evidence of other necessary parties. It was found that assessee had produced certain documents including ledger extracts of parties, confirmation from parties, bank statements and certificate from registered valuer showing construction of a building indicating procurement of steel for which said payments were made by cheque.  Capitalization was denied solely based on statement made by only party recorded under section 131. No enquiry in this regard was made and no evidence generally was made available by Assessing Officer. Addition was deleted. On appeal the Court held that  since entire order of Assessing Officer was based merely on statement of Director of assessee without summoning or adducing additional/supplementary evidence of any other person corroborating allegation regarding bogus payments made by assessee, Tribunal was justified in deleting the  addition.