Case Law Details
When the statements made by the assessees here, later retracted, do not have any evidentiary value, there is no basis in holding that there are materials available before the Assessing Officer to make out cases of escapement of income. A reason must be formed by the Assessing Officer to reopen an assessment on the basis of material or information recognized under law.
Even if reassessments are held to be valid, still no additions could be made on the basis of those statements. In such circumstances, it is obvious that the reassessments would only be an empty formality. A provision of a statute is not contemplated for performing an empty formality. Therefore, by all means, it is necessary to hold that reopening of an assessment is not permissible in law on the basis of a statement obtained in the course of survey action under sec.133A, which has been later on retracted. The decision of the Tribunal, Ahmedabad Bench is squarely on this point. In that case, a statement was obtained in the course of survey and thereafter that was retracted and on that basis the Tribunal held that no addition can be made in the hands of the assessee. Therefore, in the facts and circumstances of the case, we hold that the substratum to give a reason to believe that income chargeable to tax has escaped assessment, is vitiated in these cases. Therefore, the impugned reassessments are not sustainable in law.
INCOME TAX APPELLATE TRIBUNAL, CHENNAI
ITA Nos. 575 to 582/(Mds)/2011 –
Assessment Years : 1999-2000 to 2004-05
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