Without Corroborating Evidence, Addition Can’t Be Made On The Basis Of A Declaration Made U/s 132(4) Of The Income Tax Act: ITAT
Live LawThe Guwahati Bench of the Income Tax Appellate Tribunal has held that without corroborating evidence, an addition ought not to be made on the basis of a declaration made under Section 132 of the Income Tax Act.The bench of Rajpal Yadav and Manish Borad has observed that apart from the disclosure statement, no other document is being referred to. The Guwahati Bench of the Income Tax Appellate Tribunal has held that without corroborating evidence, an addition ought not to be made on the basis of a declaration made under Section 132 of the Income Tax Act. A search under Section 132 of the Income Tax Act was carried out in the residential as well as office premises of the assessee/appellant and its directors. The ITAT stated that in law, a retracted confession may even form the legal basis of an addition if the Assessing Officer is satisfied that it was true and was voluntarily made, but basing the addition or retracted declaration solely on it would not be safe.