Case Law Details
A. Thangavel Nadar Stores Vs ITO (Madras High Court)
Conclusion: Reassessment was not justified wholly on the basis of a sworn statement recorded in the course of survey in the absence of any other tangible evidence available with the Assessing Officer as the materials collected and the statement obtained under Section 133A would not automatically bind upon the assessee.
Held: The issue arose for consideration was whether a notice/ proceedings for re-assessment could be sustained wholly on the basis of a sworn statement recorded in the course of survey in the absence of any other tangible evidence available with the Assessing Officer.This issue had been considered in the case of CIT, Salem v. M/s.S.Khader Khan Son (2012) 254 CTR (SC) 228 : (2013) 352 ITR 480 (SC) : (2012) 210 TAXMAN 248 (SC) wherein the Bench stated that the word “may” used in Section 133A(3)(iii) of the Act, viz., “record the statement of any person which may be useful for, or relevant to, any proceeding under this Act, made it clear that the materials collected and the statement recorded during the survey under Section 133A were not conclusive piece of evidence by itself. Following the circular F.No.286/2/2003 of the Central Board of Direct Taxes dated 10.3.2003, it was concluded that the materials collected and the statement obtained under Section 133A would not automatically bind upon the assessee. There was not a shread of material apart from the statement recorded under Section 133A that formed the basis of the proceedings for reassessment, thus, notice under section 148 was set aside as reason recorded for reopening of assessment had no legs to stand.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Heard Mr.R.L.Ramani, learned senior counsel for Mr.B.Raveendran, learned counsel for the petitioner and Mr.Naveen Durai Babu, learned Standing counsel for the respondent.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
