Statement Recorded - Survey case

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Cindhan

Student

67 Points Posted on 14 September 2025

The Assessee was an accounting professional and during the course of survey, he has given wrongful statement i.e he admitted Rs.2500000 instead of Rs.1500000. The assessee later only realised this and his bank statement reflected only Rs.15lakhs. Whether the assessee can disclose Rs 15lakhs in the return filed in response to 148 notice. Or he should disclose Rs.25 lakhs as per his statement. Note that he has detailed breakup of this Rs.15 lakhs. Whether the statement Recorded in survey is conclusive and is final OR based on the evidence,the initial statement stands inoperative.

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211643 Points Posted on 14 September 2025

The assessee is not legally bound to disclose the higher amount of Rs. 25 lakhs admitted during the survey if the true and supported income is only Rs. 15 lakhs, as reflected in the bank statement and detailed records. Statements made during a survey under section 133A are not conclusive evidence and are not binding if contrary evidence is available. The law and settled case precedents make clear that such survey statements are only one piece of information and can be rebutted by the assessee with relevant documents and explanations.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211643 Points Posted on 14 September 2025

The Delhi High Court, ITAT, and other authorities have held that admissions during a survey may be retracted or corrected if the assessee can substantiate the correct facts through documentary evidence.

Supporting records such as books of accounts, bank statements, and other relevant documents take precedence over a mistaken admission in a survey if these establish the actual state of affairs.