Jagbir Singh Nehra Vs DCIT (ITAT Chandigarh)
ITAT Chandigarh held that mere statement recorded during the search cannot be treated as incriminating document and hence addition on the basis of the same is not sustainable. Accordingly, appeal of the assessee allowed.
Facts- The Assessee is an individual dealing in trading of bananas. A search and seizure operation u/s 132 of the Income Tax Act, 1961 was conducted on 8.9.2021. During the search, statement of the Assessee was recorded in which the Assessee admitted for purchase of a property of Rs. 36 lacs against the registered title deed for an amount of Rs. 10,15,000/-for which the payment was made through banking channel.
CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion-Chandigarh Bench of the ITAT in the case of Dy. CIT vs. Partap Singh Rajendra Chamola & Co. has held “No addition in block assessment can be made solely on the basis of statements recorded during search. Such statements cannot be treated as incriminating material found in the course of search.”
Held that mere statement recorded during the search cannot be treated as incriminating document for the addition in a search case, therefore, the CIT(A) finding on this issue cannot be sustained. Accordingly, the Assessee’s appeal stand allowed.
