DCIT Vs Falcon Bus Lines Private Limited (ITAT Mumbai)
Summary: The Revenue appealed against the order dated 07.10.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2017-18, arising from the assessment order passed under section 143(3) r.w.s. 147 of the Income-tax Act, 1961. The assessee was engaged in operating bus services and ticket booking. A survey under section 133A was conducted at its business premises on 31.08.2016, during which the Director surrendered Rs.1,45,53,867/- as additional income. The assessee subsequently incorporated the surrendered amount in its regular books and disclosed it in the return of income. During reassessment proceedings, the Assessing Officer treated the surrendered amount as unexplained cash credit under section 68.
Before the Ld. CIT(A), the assessee contended that the addition was based merely on the survey statement and that no corroborative material had been brought on record. It was also submitted that although the proceedings were under section 133A, the statement was recorded under section 131 without satisfying the statutory conditions. The Ld. CIT(A), relying upon the judgment of the Hon’ble Supreme Court in CIT Vs S. Khader Khan Son [352 ITR 480 (SC)], held that a statement recorded during survey had no independent evidentiary value and that, in the absence of corroborative material, an addition could not be sustained merely on that basis.
