Mere Statement recorded during survey cannot be the sole basis for making addition

A survey proceedings was carried out in the middle of the accounting year (on 1.12.2006) in the case of AHS Joint Venture, the sister concerns of the assessee firm. During the course of survey there was no incriminating material nor undisclosed income found in the hands of the assessee or its sister concern. A statement was recorded from the assessee partner, wherein he estimated the income of the group concern at 12.25 crores of rupees as under: AHS Joint Venture Rs. 6,25,00,000 Amrapali Homes Rs. 6,00,00,000 Rs. 12,25,00,000 However, after finalization and audit of accounts, the i...