Answer

1. F

   Facts

   Yes. A statement recorded on oath under a summons is evidence and can be used in assessment, reassessment and penalty proceedings. Courts also expect officers to support additions with other evidence, not the statement alone.

2. P

   Provisions and law

   • Sec 131, Income-tax Act 1961 (now Sec 246, Income-tax Act 2025)Officers have civil court powers to summon, examine on oath and call for books and documents
   • Sec 270A, Income-tax Act 1961 (now Sec 439, Income-tax Act 2025)Penalty for under-reporting (50% of tax) or misreporting (200% of tax) of income
   • Sec 148A, Income-tax Act 1961 (now Sec 281, Income-tax Act 2025)Show cause procedure before a reassessment notice
3. A

   Analysis

   This is why careful, accurate answers matter. Example: in a statement you say a ₹4 lakh deposit was a loan from a friend; later you produce a gift deed instead. The change damages your credibility. Stick to facts you can prove, and correct any mistake in writing quickly with documents.

4. C

   Conclusion

   1. 1Keep a copy of every statement
   2. 2Make sure later replies are consistent with it
   3. 3Correct any error in writing with documents promptly
   4. 4Raise lack of corroboration in appeal if an addition rests only on the statement

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.