Validity of Addition based on statement retracted later on by assessee

Satish Chand Agarwal, Prop. Sumit Medical Hall Vs ITO (ITAT Jaipur) It is trite law that Section 133A does not empower any Income tax authority to examine any person on oath and then use it as evidence to make addition. In such a situation, no addition can be made or sustained only on the basis of the statement recorded during the survey U/s 133A of the Act. Once the assessee has retracted from the statement then it was on the A.O. to establish beyond any doubt the issues on which the addition has been made. Once the assessee has submitted up to date cash book and stock register then it was du...