Survey statements under s.133A(3)(iii) cannot justify disallowance of genuine labour and subcontract expenses under s.37

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....ITAT held that additions and disallowance of labour/sub-contract expenses u/s 37, based solely on statements recorded during survey u/s 133A(3)(iii), were unsustainable. The statements, not being on oath, were treated as mere information lacking independent evidentiary value and, in this case, stood retracted and uncorroborated. Revenue failed to produce adverse material regarding four other contractors and relied selectively on two statements, while contemporaneous records, bank withdrawals, and comparative profit ratios across years supported the genuineness of expenses. ITAT found the payments to labour and sub-contractors to be incurred wholly and exclusively for the assessee's civil contract business with a State agency. Consequently, the disallowance of labour/sub-contract expenses was deleted and the assessee's appeals were allowed in full.....