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of <h1>Tribunal reduces unaccounted investment claim, validates seized documents, grants partial relief to assessee</h1> <h3>Shri Rajeev Majumdar Versus DCIT (Central) -1, Bhopal</h3> Shri Rajeev Majumdar Versus DCIT (Central) -1, Bhopal - TMI Issues Involved:1. Justification of addition towards alleged unaccounted investment of Rs. 87,60,000.2. Validity of the seized documents as evidence.Issue-wise Detailed Analysis:1. Justification of Addition towards Alleged Unaccounted Investment of Rs. 87,60,000:The assessee contested the addition of Rs. 87,60,000 towards alleged unaccounted investment. The Assessing Officer (AO) made this addition based on seized documents during a search operation, which indicated transactions involving the assessee. The AO added Rs. 32,60,000 as the difference between Rs. 62,60,000 (left side) and Rs. 30,00,000 (capital investment in Regal Samarth Krishna Builders) and Rs. 55,00,000 as the difference between Rs. 85,00,000 (right side) and Rs. 30,00,000 (disclosed investment).The Commissioner of Income Tax (Appeals) [CIT(A)] upheld this addition, noting that the seized documents showed a nexus between the amounts and the projects involving the assessee. The CIT(A) observed that the assessee failed to provide material evidence to support his claim that the amounts were not unaccounted investments.The tribunal examined the seized documents and the assessee's submissions. It was noted that the assessee admitted to introducing Rs. 60,00,000 as capital in the partnership firms, which was duly accounted for. However, the tribunal found that the amount of Rs. 85,00,000 mentioned as 'to be taken from Chitrakoot' could potentially include both capital and income. Given the lack of conclusive evidence from the revenue to prove that the entire amount was unaccounted income, the tribunal concluded that only Rs. 22,40,000 (the difference between Rs. 85,00,000 and Rs. 62,60,000) should be treated as unaccounted investment. Thus, the tribunal partly allowed the appeal, reducing the addition to Rs. 22,40,000.2. Validity of the Seized Documents as Evidence:The assessee argued that the seized documents found at a third party's premises should not be considered as evidence against him. The tribunal, however, noted that the assessee had admitted to some of the transactions recorded in the seized documents, thereby establishing a connection. The tribunal rejected the assessee's reliance on a jurisdictional High Court judgment, as the facts of the case differed significantly.The tribunal emphasized that the documents contained entries related to the assessee's transactions, including capital introduced in partnership firms. Therefore, the tribunal upheld the validity of the seized documents as evidence but limited the addition to Rs. 22,40,000 based on the analysis of the transactions recorded in the documents.Conclusion:The tribunal concluded that the addition towards unaccounted investment should be limited to Rs. 22,40,000, providing partial relief to the assessee. The tribunal upheld the validity of the seized documents as evidence, given the established connection between the transactions and the assessee. The appeal was partly allowed, reducing the addition from Rs. 87,60,000 to Rs. 22,40,000.
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