Income Tax Department cannot make Additions based on Statements Retracted during Search without Incriminating Material: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that the Income Tax Department cannot make additions based on retracted statements during a search unless supported by incriminating material. The case involved an assessee whose statements made during a search were later retracted. The Tribunal emphasized that retracted statements alone are insufficient for additions unless corroborated by other incriminating evidence. This decision reinforces the principle that the department must rely on substantial and corroborative evidence rather than solely on statements that have been subsequently withdrawn.