2020 (3) TMI 48

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....onvenience, facts from ITA No. 497 of 2018 are taken. Following substantial questions of law have been claimed: "(i) Whether in the facts and circumstances of the case, the ITAT has erred in law on facts in upholding the orders passed by the Lower Authority and in confirming the action of Ld. A.O. in making the addition of Rs. 78,88,222/- as undisclosed income allegedly being profit on sale of plot merely on the basis of conjecture and surmises and without of any basis? (ii) Whether in the facts and circumstances of the case, the ITAT has fallen in error in sustaining the additions made by the A.O. and CIT (A) on the basis of loose papers which were even not being the documents within the meaning of Section 32 of Indian Evidence Act, ....

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....ain documents and loose papers were seized from his residential premises. Notice under Section 153A of the Income Tax Act, 1961 (for short, 'the Act') was issued, return was filed declaring income of Rs. 4,13,720/-. Apart from other additions, the Assessing Officer made addition on account of undisclosed earned profit on sale of industrial plots at village Jharsentli, Tehsil Ballabgarh, District Faridabad. The land was owned by M/s Indo American Electricals Limited (hereinafter described as 'the seller'). Manmohan Singh was the Managing Director of the company. It was noted that M/s Reliance Estate Agency was appointed by the seller to advertise and procure bids for sale of the land. M/s TML Investments (P) Ltd. showed inter....

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....s of the appellant and the said deletion is of no help to the appellant. 6. There is no dispute that on the basis of the loose sheet seized during the search, the addition was made on the buyer and the same has been deleted. Learned counsel for the revenue is not in a position to dispute the averment that no addition was made in the hands of the seller. 7. The Tribunal while dealing with the averment that there is deletion of addition made on buyer stated that the same is of no consequence, as it was deleted only on technical ground. The reason recorded is against record and not plausible. The relevant portion of the order of the Tribunal in the case of ITA No. 4802/Del/2009-- ITO v. M/s Dua Auto Components P. Ltd., which was followed i....

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.... sale deed the plot was sold on 23.5.2002. Under the circumstances, these additions have been made on the basis of documents found during search at the place of a third party which at best only showed the tentative/ projected purchase consideration. It is not the case that the Circle Rate or the value as per stamp registration authorities of the impugned property is more than what has been disclosed. It is also not the case that unaccounted cash has been found to be paid by the assessee or received by the seller. There is also no statement of the seller on record that he has obtained on money. Under the circumstances, the additions made in this regard is not sustainable. 6.3 In this regard, we place reliance upon the Hon'ble Apex Cou....