Survey Statement u/s 133A Has No Evidentiary Value – Additions Quashed
The Hon’ble Chhattisgarh High Court held that additions towards alleged excess stock and excess cash cannot be sustained solely on the basis of a statement recorded during survey proceedings under Section 133A of the Act.
The Court observed that the survey authority is not empowered to administer oath, and therefore, such statements do not possess evidentiary value. Relying on the landmark judgment in CIT v. S. Khader Khan Son (300 ITR 157), as affirmed by the Hon’ble Supreme Court, it was reiterated that a survey statement is neither conclusive nor binding.
The Court noted that the assessee had retracted the disclosure, and the Assessing Officer failed to bring on record any independent or corroborative material. Additions made merely on the basis of a retracted survey statement were held to be legally unsustainable. Consequently, the orders of the AO, CIT(A), and ITAT were set aside. The substantial question of law was answered in favour of the assessee and against the Revenue.
The copy of the order is as under:
