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Pullangode Rubber Produce Co. Ltd. vs State Of Kerala And Anr. on 22 September, 1971

95. We further note that, although, an admission in a statement recorded under section 132(4) of the Act is as good as a piece of evidence, but, it is not a conclusive evidence and in 81 ITA.Nos.262 to 268/Hyd./2025, ITA.No.98/Hyd./2025 And C.O.Nos.9, 10 & 11/Hyd./2025 order to make an addition, it is essential for the Assessing Officer to bring on record, corroborate evidence to substantiate the statement recorded from any person and this legal principle is supported by the decision of Hon'ble Supreme Court in the case of Pullangode Rubber Produce Co. Ltd., vs., State of Kerala And Anr. (1973) 91 ITR 18 (SC).
Supreme Court of India Cites 3 - Cited by 278 - K S Hegde - Full Document

Sarwan Singh vs The State Of Punjab(With Connected ... on 10 April, 1957

The Hon'ble Supreme Court in the case of Sarwan Singh vs., State of Punjab AIR 1957 SC 637 held that, "a confession may be treated as voluntary however that by itself may not be suffice. For the confession to be accepted as valid evidence, it is necessary to establish that, the confession is true". In the present case, going by the evidence on record, the statement recorded from the assessee cannot be considered as good evidence. Further, it is very clear from the statement recorded from the Managing Director of the assessee company that, admission given on this account is voluntary. Therefore, in our considered view, on the basis of voluntary admission, further addition cannot be made without any evidence to support the said addition. The learned CIT(A) without considering the relevant facts, has simply sustained the addition made by the Assessing Officer. Thus, we set-aside the Order of the learned CIT(A) and direct the Assessing Officer to delete addition made towards unexplained investment in money lending business for Rs. 6.91 crores.
Supreme Court of India Cites 7 - Cited by 157 - P B Gajendragadkar - Full Document
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