Whether statement under Section 132(4) constitutes incriminating material for carrying out assessment?

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Whether statement under Section 132(4) constitutes incriminating material for carrying out assessment?

 

 

Delhi high court dismisses pending batch of appeals and fully approved the  ITAT orders argued on the following question .
The preliminary question under consideration before us is whether a
statement under Section 132(4) constitutes incriminating material for
carrying out assessment under S. 153(A) of the Act.
 A reading of the impugned order reveals that the statement of Mr. Jindal recorded under Section 132(4) forms the foundation of the assessment carried out under Section 153A of the Act.
Itbhas been held that statement alone cannot justify the additions made by the AO.
It is held that, even if we accept the argument of the Revenue that the failure to cross-examine the witness did not prejudice the assessee, yet, we discern from the record that apart from the statement of Mr. Jindal, Revenue has failed to produce any corroborative material to justify the additions.
Further directed on mandatory use of sec 153c vis a vis searched person and highlighted and approved  cross examination importance delhi itat order fully approved.

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