TaxTMI 
TaxTMI 
2023 (4) TMI 464
X X X X Extracts X X X X
X X X X Extracts X X X X
....i [briefly "the CIT(A)"] has erred in upholding the addition of Rs.75,00,000/- made on account of sale of an house by raising the presumption under section 292C of the Income tax Act, 1961 ("the Act"). 1.1 That on the facts and circumstances of the case, the CIT(A) did not appreciate that except for the undated and unsigned loose paper, no other document, paper, agreement or any other material indicating sale of the house property by the Appellant was found during the course of search. 2. That on the facts and circumstances of the case, the CIT(A) has erred in upholding the addition of Rs. 13,00,000/- made on account of interest earned by raising the presumption under section 292C of the Act. 2.1 That on the facts and circumstances of the case, the CFT(A) did not appreciate that except for the undated and unsigned loose paper, no other document, paper, agreement or any other material indicating outstanding loan / advance to any person or receipt of any interest by the Appellant was found during the course of search. 3. That on the facts and circumstances of the case, it was not appreciated that the unsubstantiated seized paper can lead to the add....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w tax effect) 2008-09 5756/Del/2016 CIT(A) deleted Revenue in appeal (GR-2) 2009-10 5757/Del/2016 CIT(A) deleted Revenue in appeal (GR-2) 2010-11 5758/Del/2016 CIT(A) deleted Revenue in appeal (GR-2) 2011-12 CIT(A) deleted No appeal by the Department 2012-13 5565/Del/2016 CIT(A) partly confirmed Assessee in appeal 9. We have perused the Assessment Order and order of the ld. CIT(A). It is clear that the addition made was devoid of any incriminating material found and seized during the search. The date of search was 10.01.2012. The due date for issue of notice u/s 143(3) for the A.Y. 2011-12 has not expired. No appeal by the revenue for the A.Y. 2011-12. With regard to the earlier assessment years, the due date for issue of notice has been expired. Completed assessments can be interfered with by the Assessing Officer while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the co....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ITA No. 5559/Del/2016 : A.Y. 2006-07 ITA No. 5560/Del/2016 : A.Y. 2007-08 ITA No. 5561/Del/2016 : A.Y. 2008-09 ITA No. 5562/Del/2016 : A.Y. 2009-10 ITA No. 5563/Del/2016 : A.Y. 2010-11 ITA No. 5564/Del/2016 : A.Y. 2011-12 ITA No. 5565/Del/2016 : A.Y. 2012-13 2. Interest Earned: 14. During the course of search & seizure operation u/s 132 of the Income Tax Act, 1961 at the residential premises of the assessee at C-168, Anand Vihar, New Delhi, incriminating documents were found and seized. Pages 17 to 19 of Annexure A2, Party - DR6, contains notings of various financial transactions, which is reproduced as under: April, 2004 -2006 House sold 7500000 1100000 16 plots bought 6400000 1100000 Earning from interest 109000X24=2600000 2600000" 15. During the course of assessment proceedings, the assessee was asked to explain the above seized documents. The assessee has replied that: "It does not belong to me and not even aware its belong to whom. Apparently someone who had taken my car or his personal use might have left these papers and found by the search party." ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lding exclusively only one residential house property situated at C-168, Anand Vihar, Delhi-92, which is a joint property alongwith his wife Mrs. Ranjit Kaur, wherein he has been living since 2001 and continuing to reside in this house also till this date. As such, there is no sale/purchase deed of any such property presumed to have been sold during the period from April 2004 to 2006 nor any document or corroborative evidence has been found inspite of a detailed search. 19. It was argued that on perusal to the statement of affairs as on 31.3.2006, there is no such interest bearing loans advanced, which could fetch him in monthly interest of Rs. 1.09 lakhs. Since, all the loans and advances held by the appellant as per statement of affairs as at 31.3.2006 stand duly confirmed by the respective cash creditors. 20. It was argued that merely on the basis of loose papers found during the course of search, having no relevant date thereon and not even in the assessee's own handwriting, unsigned papers, which are nothing but dumb documents. It was further submitted by the ld. AR that in the absence of any other document about receipt or payment, it could not be held that the appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cuments pertaining to purchase of the said house or sale of said house and purchase of 16 plots were found. Even in the post search inquiries none of the 17 properties could be traced out. There was no evidence in any of the bank statement with regard to the dealings. The inferences drawn were not backed by any tangible evidences or corroborative evidences. The revenue failed to establish the person to whom these documents belong, name or details of the persons from whom the alleged income was earned, any type of correlation with the business of the assessee. The statement recorded u/s 132(4) on the date of search has also not pointed to any reasonable evidence to come to a conclusion that the figures mentioned on the loose sheets infact constitute income of the assessee. 26. The provisions of Section 292C reads as under: "Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search under section 132 or survey under section 133A, it may, in any proceeding under this Act, be presumed- (i) that such books of account, other documents, m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted an unaccounted transaction and Tribunal held that entries in question belonged to some company, inasmuch as assessee could explain from books of such company that these projects were undertaken by it, and Tribunal held that loose sheet did not represent any expenditure incurred by assessee, deletion of addition based on loose sheet, treating it as unexplained expenditure in assessee's hands was justified. 31. Assistant Commissioner of Income-tax vs. Sharad Chaudhary [2015] 55 taxmann.com 324 (Delhi - Trib.) Held that a loose paper found during search standalone could not be used as a basis for making impugned addition without the company of any other supportive material and evidence more so when contents of main three parts of the notings were not interlinked and the Assessing Officer had deleted decimal from noting of the figure of Rs. 4,47,000.00 for reading and accepting the same as Rs.4,47,00,000 which was not permissible in absence of other supportive evidence. The addition was, therefore, deleted. 32. Hence, we hold that an assessment carried out in pursuance of search, no addition can be made simply on the basis of uncorroborated noting in loose papers found....