Post-Midnight Search Confession by Non-Accounting Partner Unreliable Without Corroborative Evidence:...

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a confession obtained during a post-midnight search from a partner who is not involved in the accounting affairs of a firm is unreliable. The tribunal stated that such a confession cannot be the sole basis for making a tax addition without any independent, corroborating evidence. The case involved a statement recorded in the early hours of the morning, which the assessee later retracted. The ITAT observed that statements recorded under duress or at unusual hours, especially from individuals not directly responsible for the accounts, carry little evidentiary value. The tribunal emphasized that the revenue department must substantiate its claims with tangible proof and cannot rely on a weak, uncorroborated, and later retracted confession to make an assessment. This ruling protects taxpayers from coercive measures during search operations.