2018 (3) TMI 462

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....ent year 2007-08. 2. Briefly stated, the facts as culled out from the records, are that the assessee is a partnership firm. A survey u/s 133A was conducted on 19/03/2007 at the business premises of the assessee. E-return was filed on 13/07/2009 declaring income of Rs. 2,22,400/-. The assessee derives income from sale of oil and lubricants. During the course of survey, partner Shri Anil Rathi surrendered Rs. 3.50 lakhs as income for purchase of items for which bills were not available. There was no incriminating material found in the course of survey supporting the surrender of Rs. 3.50 lakhs. This amount was not shown in the return of income filed by the assessee. Accordingly the Assessing Officer made the addition for Rs. 3.50 lakhs for....

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....y the partner of the assessee firm during the course of survey towards unaccounted purchases. It is not disputed that there was no incriminating material found during the course of survey which could substantiate the basis of the alleged addition. We further find that during the course of assessment proceedings the assessee had fully explained the purchase of oil and lubricants. The Assessing Officer has not referred to any corroborative evidence to substantiate that there was in fact any unaccounted purchase of oil and lubricants. 5.1 We further observe that it has been consistently been held by Hon'ble Courts that the statement recorded during the course of survey are not sacrosanct and cannot be relied against the assessee for mak....