No Addition based on mere statement recorded u/s 132(4) in the absence of Supporting evidences

A search and seizure operation was carried out at the premises of the assessee on 22.11.2006. Assessee is an individual filed the return of income at Rs.5,88,06,735/- on 02.09.2008. This amount included undisclosed investment in jewellery of Rs. 12,85,777/- and undisclosed cash found during search of Rs.24,86,000/-. The Assessing Officer made an addition of Rs. 15 crores on the basis of statement recorded u/s 132(4) of the Income-tax Act, 1961 during the search operation. In the assessee’ s case , this admission of additional income is not based upon any credible evidence and the same has b...