2018 (4) TMI 1744 - HC - Income Tax

Tax Appeal Dismissed: Lack of Evidence Implicating Assessee. Factual Issue, No Legal Question.

COMMISSIONER OF INCOME TAX, GANDHINAGAR Versus SUVAS HITENDRA BAROT

The Tax Appeal was dismissed as the Tribunal found that the papers discovered during the search did not implicate the assessee in the unaccounted ... Addition on unaccounted investment - block assessment proceedings - HELD THAT:- Tribunal held and observed that in the loose papers found during the search, the name of the assessee nowhere appeared. During the search, the statements of the representatives of Bhavya Group were also recorded, who had denied the contents of the documents impounded. The Tribunal noted that against Bhavya Group, in respect of the notice found in such papers, no account was taken. In view of such facts, the Tribunal concluded that the papers merely contained some notings but, in any case, did not involve the assessee. The issue is purely factual in nature. No question of law arises Issues:Appeal against judgment of Income Tax Appellate Tribunal regarding addition made by Assessing Officer on unaccounted investment in Bhavya Group.Analysis:The main issue in this case is the addition made by the Assessing Officer in the block assessment proceedings regarding unaccounted investment in Bhavya Group. The Tribunal observed that the loose papers found during the search did not contain the name of the assessee anywhere. Additionally, the representatives of Bhavya Group denied the contents of the impounded documents during the search. The Tribunal noted that no account was taken against Bhavya Group in relation to the notice found in the papers. Consequently, the Tribunal concluded that the papers only contained notings and did not implicate the assessee. The Tribunal deemed the issue to be purely factual, with no question of law arising. Therefore, the Tax Appeal was dismissed.In summary, the judgment revolves around the factual aspect of the case, with the Tribunal determining that the papers found during the search did not implicate the assessee in the unaccounted investment in Bhavya Group. The Tribunal's decision was based on the lack of the assessee's name in the papers, the denial of contents by Bhavya Group representatives, and the absence of any account taken against Bhavya Group. Consequently, the Tribunal found no legal basis to uphold the addition made by the Assessing Officer, leading to the dismissal of the Tax Appeal.