DCIT Vs Sujit Arya (ITAT Kolkata)
Retracted Survey Statement & Dumb Document Can’t Sustain Addition: Kolkata ITAT Upholds Deletion of ₹4.41 Cr
Survey Confession Retracted, Dumb Document Exposed – 133A Statement Has No Teeth Without Evidence: ITAT Backs Assessee- Khader Khan Still Rules: Survey Admissions Alone Don’t Create Tax
Kolkata ITAT ‘D’ Bench in DCIT Vs. Sujit Arya [ITA No. 751/KOL/2025, AY 2014-15, order dated 31.12.2025] dismissed Revenue’s appeal and upheld deletion of addition of ₹4,41,61,742 made on account of alleged undisclosed income admitted during survey u/s 133A. Assessee, engaged in transportation business, was subjected to survey on 08.11.2013, during which a computer printout (page 33 of SA-5) was impounded and statement was recorded wherein Assessee offered additional income. However, Assessee retracted the statement within two days by filing affidavit, consistently denying any undisclosed income and contending that impounded paper was a “dumb document” having no nexus with his business.
Tribunal noted that addition was made solely on basis of retracted survey statement and an unsigned, uncorroborated computer printout which neither mentioned name, nature of transaction nor ownership. No unaccounted cash, investment or defect in books was found, and AO failed to bring any corroborative evidence despite retraction being on record for over three years. Relying on CIT Vs. S. Khader Khan Son (SC), CBDT Circular F.No.286/2/2003-IT(Inv) and various ITAT precedents, Tribunal held that statement recorded u/s 133A has no evidentiary value and dumb documents cannot form sole basis of addition. Tribunal also upheld deletion of disallowance u/s 40A(3), noting that CIT(A) had examined business necessity and banking channels in detail. Revenue appeal was dismissed in entirety
FULL TEXT OF THE ORDER OF ITAT KOLKATA
