Survey statement without corroboration cannot justify taxing an advance receipt in an incomplete construction transaction.

A survey statement recorded under section 133A, unlike a sworn deposition, does not by itself have sufficient evidentiary value to sustain an income addition when it is later retracted by affidavit. Where no corroborative material showed completed sales or accrual of income, and the receipt was reflected in the books as a liability or advance in an incomplete construction transaction, it remained an advance receipt and not taxable income for that year. The addition was therefore unsustainable and was deleted in favour of the assessee.

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Issues: Whether the amount of Rs. 25,07,000 received in the course of a survey and later retracted could be assessed as income in the relevant assessment year, or whether it was only an advance receipt not chargeable to tax.

Analysis: A statement recorded during survey under section 133A of the Income-tax Act, 1961 does not by itself carry evidentiary value in the same manner as a sworn statement. The assessee retracted the disclosure by affidavit, and no corroborative material sufficient to show completed sales or accrual of income was brought on record. The business was in construction, the books reflected no completed sales during the year, and the amount was shown as a liability/advance. Income from such transactions arises only when the transaction is complete and title passes; an advance receipt, without completion of the sale, does not become taxable income in that year.

Conclusion: The addition of Rs. 25,07,000 was not sustainable in the relevant assessment year and was deleted in favour of the assessee.

Ratio Decidendi: An amount received as an advance in an incomplete construction or sale transaction cannot be taxed as income until the transaction is completed and the receipt acquires the character of income; a statement recorded under section 133A, without corroboration, does not by itself justify the addition.

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