Statement Recorded u/s 133A Lacks Evidentiary Value in Absence of Summons u/s 131: ITAT [Read Order]
The bench observed that the AO failed to provide proof of summons issued under Section 131 of the Income Tax Act,which would have given the statements evidentiary credibility.
![Statement Recorded u/s 133A Lacks Evidentiary Value in Absence of Summons u/s 131: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/01/ITAT-Absence-of-Summons-Section-133A-of-the-Income-Tax-Act-CIT-income-tax-income-tax-news-ITAT-news-Mumbai-Bench-of-ITAT-AO-Section-131-Taxscan.jpg "Statement Recorded u/s 133A Lacks Evidentiary Value in Absence of Summons u/s 131: ITAT [Read Order]")
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that the statement recorded under Section 133A of the Income Tax Act, 1961, lacked evidentiary value in the absence of summons under Section 131 of the Income Tax Act. The revenue has appealed before the ITAT against the order passed by the Commissioner of Income Tax ( Appeals ) [ CIT( A ) ] in deleting the addition of Rs....
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that the statement recorded under Section 133A of the Income Tax Act, 1961, lacked evidentiary value in the absence of summons under Section 131 of the Income Tax Act.
The revenue has appealed before the ITAT against the order passed by the Commissioner of Income Tax ( Appeals ) [ CIT( A ) ] in deleting the addition of Rs. 4.50 crores relating to income surrendered during the course of the survey operation and also the addition of Rs. 44.50 lakhs relating to unaccounted cash receipts.
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In this case, a survey was conducted on 13-03-2014 at the business premises of the assessee and the department uncovered unsigned and undated documents purportedly showing unaccounted cash receipts, alongside statements by employees suggesting that the company accepted cash payments for about 30% of the sale value of flats.
It is to note that the company’s director, Ashok Kumar Kothari, admitted during the survey regarding undisclosed income of Rs. 4.50 crores for assessment year 2014-15, agreeing to pay taxes in installments.
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But, the company did not declare this amount in its return, later contesting the validity of the surrender, contending that statements under Section 133A lack evidentiary value.
The Assessing Officer (AO) added Rs. 4.50 crores as undisclosed income based on the director’s statement and Rs. 44.50 lakhs based on alleged unaccounted cash receipts. On appeal, the Commissioner of Income Tax (Appeals) [CIT(A)] deleted these additions, prompting the Revenue to escalate the matter to the ITAT.
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ITAT relied on the judgement of the Supreme Court in S. Khader Khan (352 ITR 480), which established that statements recorded under Section 133A have no evidentiary value unless corroborated by material evidence. The bench observed that the AO failed to provide proof of summons issued under Section 131 of the Income Tax Act,which would have given the statements evidentiary credibility.
The ITAT upheld the CIT(A)'s decision to delete the additions of Rs. 4.50 crores and Rs. 44.50 lakhs, dismissing the Revenue's appeal.
To Read the full text of the Order CLICK HERE
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