2018 (1) TMI 1728

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....epresented by its partner V.Gurunathan, is aggrieved by an order passed by the second respondent rejecting the petitioner's objections for reopening of the assessment for the assessment year 1999-2000 by invoking the power under Section 147 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). The basis for reopening of the assessment is a statement, which is said to have been recorded from one of the partners of the firm by name, Shri S.Balasubramanian, during the course of survey conducted in the business premises of the petitioner on 06.03.2002. The respondent would state that in the said statement, the partner stated that there is an understatement of the cost of construction of a commercial building, which was put up ....

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....tement. If that is so, can the second respondent rely on the said statement and reopen the proceedings. 4.The counter affidavit proceeds to justify the impugned action by placing reliance on the decision of the Hon'ble Allahabad High Court in the case of Dr.S.C.Gupta vs. Commissioner of Income Tax reported in [2001] 248 ITR 782. This judgment was considered by the Hon'ble Division Bench of this Court in the case of Commissioner of Income-Tax v. S.Khader Khan Son reported in [2008] 300 ITR 157 (Mad). Among other things, the Court held that the statement recorded during the course of survey action under Section 133A of the Act shall not have any evidentiary value and solely based on the said statement given by one of the partners of ....