No Addition Based on Confession Alone: HC Rejects Uncorroborated Search Statement

PCIT Vs M.Kiran Kumar (Madras High Court) Summary: The Madras High Court upheld the ITAT’s order deleting multiple additions made solely on the basis of a statement recorded during search without corroborative evidence. The Court held that an admission under Section 132(4), especially when made to “buy peace,” cannot independently justify additions unless supported by material evidence. It found that the alleged undisclosed income was not attributable to the assessee in his individual capacity and lacked supporting proof. The Court also affirmed that business transactions routed through...