2021 (10) TMI 6

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....revenue read as under: - 1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was right in deleting the addition of Rs. 1,95,20,000/- made in the assessment order on account of "On-Money" paid to the Builder for acquiring the flat, even though the Employee/ Director/Partner have admitted receipt of On-Money in their statements recorded during the search operation on the Builder group?" 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was right in deleting the addition on account of "On-Money" paid to the builder based on the fact that no large cash withdrawals were seen from the bank accounts of the assessee, ignoring the statements recorded during search & seizur....

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.... a presumption that the contents of any document found in possession of the person in the course of a search are true, thereby meaning that the transaction of the assessee with the person so searched is also true? As evident, the revenue is aggrieved by deletion of addition of Rs. 195.20 Lacs as made by Ld. AO in assessment order on account of alleged on-money paid by the assessee to the Builder for purchasing the flat. 2. Having heard rival submissions, our adjudication to the appeal would be as given in succeeding paragraphs. 3.1 The material facts are that the assessee being non-resident was subjected to reassessment proceedings pursuant to receipt of certain information that the assessee paid on-money of Rs. 195.20 Lacs to an e....

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....hich is not corroborated by a single piece of supporting evidence linking the assessee, could not form the basis of addition of unaccounted income under regular assessment on a person not searched. The manner of discharging burden of proof in case of assessee and the searched person would be different. An independent inquiry by Ld. AO would be necessary to support the additions. However, there was no finding regarding flow of cash. The assessee, being non-resident of Spain, could not bring such funds in cash in India from Spain other than through banking channel. Therefore, the additions were to be deleted. Aggrieved, the revenue is in further appeal before us. 5. Upon perusal of assessment order, it is quite evident that except for entr....