Addition merely based on confession during search is unsustainable

DCIT Vs NIBR Bullion Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that addition merely on the basis of confession during the course of search operation without supporting evidence is unsustainable in law. Facts- During search proceedings, statement of Ajay C. Arora, Director of the assessee company was recorded u/s 132(4) of the Act. In his disclosure statement, he offered Rs.12 crores towards undisclosed income in F.Y. 2008-09 to cover up discrepancies in the seized documents, digital data, stock, excess jewellery, etc. Thereafter, Ajay C. Arora retracted from his statement and restricted his dis...