TaxTMI 
TaxTMI 
2007 (3) TMI 226
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. Vide the impugned order, the Tribunal has deleted the addition of Rs.26.05 lakhs made on account of unexplained loans advanced by the assessee and the interest earned thereon. 3. The facts in brief are that the residence of the assessee at K-101, Hauz Khas Enclave, New Delhi, was searched under section 132 of the Act on April 21, 1998. During the course of search, certain documents containing details of certain monetary transactions such as advancement of loan of Rs.22.50 lakhs by the assessee and also income by way of interest thereon at Rs. 3.55 lakhs were found. The Assessing Officer vide questionnaire dated January 27, 2000, required the assessee to explain the expenditure. The explanation given by the assessee that the account be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....enue has not been able to adduce evidence to show that the assessee earned income relating to the entry or earned interest thereon. There is no evidence to show that the assessee was advancing any money on interest or had any funds for lending. It is further contended that the document in this case is a dumb document and it does not lead to any conclusion and in support of his contention, learned counsel for the assessee cited a decision of the Delhi High Court reported as Mahavir Woollen Mills v. CIT [2000] 245 ITR 297. 8. Another contention is that since the documents seized in this case are dumb documents as per the finding of the Commissioner of Income-tax (Appeals) and the Tribunal and this conclusion is a factual one and, thus, no su....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ounts promptly and regularly. Certain markings with the pencil also shows that he never delays in recording the amounts that are paid and received. A perusal of this account also shows that a detailed account of the amounts that are given on interest against various names like Kharbanda etc. are mentioned and the dues taken back are recorded in Hindi as ' all dues taken March 31, 1998' . The interest for the 1st of April was also calculated and recorded adjacent to the account of all dues taken back. Therefore, is clearly evident that the assessee had earned income from undisclosed sources and have cir culated amongst various persons and earned interest on them. These payments and receipts are not shown in the returns filed by the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e utilized against him. In the present case, the Assessing Officer has taken into account the state ment of Smt. Sarla Gupta and has utilized the same against the asses see but the fact remains that this statement was recorded behind the back of the assessee and no opportunity was given to him to cross- examine her. We have ourselves examined the contents of the document and are unable to draw any clear and positive conclusion on the basis of figures noted on it. The letters ' H.S.', ' T.2' and ' D-Shop' cannot be explained and no material has been collected to explain the same. Likewise, the figures too are totally unexplained and on the basis of notings and jottings, it cannot be said that these are the transacti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....authorities, i.e., the Commissioner of Income-tax (Appeals) and the Tribunal. 13. In Mahavir Woollen Mills case [2000] 245 ITR 297 (Delhi), during the course of search and seizure proceedings, certain slips were found, which, the Assessing Officer concluded, contained details of payment beyond those which were made by cheques and drafts and were duly reflected in the books of account. The assessee' s stand before the Tribunal was that the documents were "dumb documents" which did not contain full details about the dates of payment and its contents were not corroborated by any material and could not be relied upon and made the basis of addition. The Tribunal considered this aspect and observed that on comparison of the seized documents ....