#retracted statement

The ITAT Guwahati has ruled that an addition under Section 69 for unexplained investment cannot rest solely on a statement from a survey that has been formally retracted, even if initially supportive. This sets a vital safeguard for taxpayers, requiring independent corroborative evidence and a fair opportunity to present valuation and source documentation before any adverse inference is drawn.

ITAT Delhi rules that additions under Section 69A for unexplained investments cannot rely solely on retracted statements of third parties without independent evidence. The tribunal emphasizes the need for corroborative proof to uphold tax additions, setting a precedent for burden of proof in search and seizure cases.