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of <h1>ITAT rules for assessee, deletes Rs. 1,01,00,000 addition based on seized docs. Interest income addition also deleted.</h1> <h3>Suresh Virji Thakkar Versus DCIT, Central Circle-1, Thane</h3> Suresh Virji Thakkar Versus DCIT, Central Circle-1, Thane - TMI Issues:1. Addition of Rs. 1,01,00,000 based on seized documents2. Confirmation of addition of Rs. 38,217 as interest income3. Deletion of additions in appeals for AYs 2010-11 & 2011-12Issue 1: Addition of Rs. 1,01,00,000 based on seized documentsThe assessee appealed against the addition of Rs. 1,01,00,000 made by the AO and confirmed by the CIT(A) based on entries found in seized documents during a search. The AO concluded that the assessee had advanced unrecorded cash as interest-bearing loans. However, the assessee denied ownership of the documents, claiming they may belong to individuals seeking dispute resolution through charitable trusts he was associated with. The documents did not specify if the amounts were loans given or taken. The ITAT observed that the AO's presumption lacked substantiation, as no incriminating material was found during the search. The ITAT ruled in favor of the assessee, directing the AO to delete the addition.Issue 2: Confirmation of addition of Rs. 38,217 as interest incomeThe second ground of appeal challenged the addition of Rs. 38,217 as interest income based on seized documents. Since the main addition of Rs. 1,01,00,000 was deleted in the first issue, the addition of interest income was automatically deleted. Consequently, this appeal was allowed in favor of the assessee.Issue 3: Deletion of additions in appeals for AYs 2010-11 & 2011-12As the main addition for AY 2008-09 was deleted, the interest additions for AYs 2010-11 & 2011-12 were also deleted. Therefore, all three appeals by the assessee were allowed. The ITAT pronounced the order in favor of the assessee on 01.10.2018.This detailed analysis highlights the challenges faced by the assessee regarding additions based on seized documents, the arguments presented, and the ultimate decisions by the ITAT in favor of the assessee by deleting the additions in all appeals.
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