2004 (1) TMI 345

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....vey on behalf of himself, his wife and his brother Shri Narayan Dass Singhi (appellant). The AO also got the said statement of Shri Daulal Singhi recorded in survey signed by the assessee at the concluding part of the said statement. He submitted that the statement of Shri Daulal was recorded by coercion. Shri Daulal had made a representation before the learned CCIT and also DC (Admn.) after the survey. Moreover, the AO has brought no material on record to prove that the assessee derived any undisclosed income from other business or from dealings in share, etc., as recorded in the said statement of Shri Daulal. He pointed out that 1/3rd of the amount of Rs. 1 lakh surrendered by Shri Daulal was also added as income in the case of Smt. Pushp....

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....ious other documents, submitted in the compilation, to which my attention was drawn during the course of the hearing. 7. The proceedings of survey were conducted on 20th Nov., 1992. The statement of Shri Daulal was recorded on that day. He, inter alia stated in his statement that he, his wife Smt. Pushpa Devi and his younger brother Shri Narayan Dass sometimes carried on the business as brokers, dealing in shares and offered to disclose income of Rs. 1 lakh between all three of them. On the same day, this statement of Shri Daulal Singhi was also got signed by Shri Narayan Dass Singhi (appellant). It would be pertinent to mention that the statement of Shri Narayan Dass Singhi was also recorded on the same day by the officers who conducted....

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....rt of the AO to gather corroborative evidence to support such confession recorded in the statements during survey. The principles of natural justice require that the AO ought to have given a specific opportunity to the assessee to cross-examine Shri Daulal before placing reliance on his statements recorded during survey. The AO also ought to have brought some material on record to prove that the assessee carried out unaccounted activities of dealings in shares or as brokers, as allegedly admitted by Shri Daulal in the said statement. The burden lies on the Revenue under s. 69C before making an addition in respect of undisclosed income. Such a burden has to be discharged by bringing on record some positive material or evidence in accordance ....