2025 (12) TMI 1101

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....following grounds of appeal: 1. The order of the Ld. CIT(A) in upholding the order of the Assessing Officer is erroneous in law as well as in facts of the case. 2. The Ld. CIT(A) ought to have observed that the addition was made basing on the draft agreement of sale which is not a valid "document" as it is a dumb document which has no evidentiary value. 3. The Ld. AO has only placed reliance on the sworn statement of a third party which has no basis and does not provide the Ld. AO to confirm the addition on account of capital gains for Rs. 30,82,500/- without going into the facts of the case. 4. There is no separate satisfaction recorded by the Assessing Officer to initiate the proceedings in the case of ....

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.... whereas an unsigned agreement of sale found during the search mentioned consideration of Rs. 37,26,500/-. Relying on the said unsigned agreement of sale, the Ld. AO treated the difference of Rs. 30,82,500/- as undisclosed sale consideration and made an addition under the head "Capital Gains." Accordingly, the assessment was completed by the Ld. AO under section 143(3) of the Act on 09.01.2025 determining the total income of the assessee at Rs. 1,07,65,750/-. 4. Aggrieved with the order of the Ld. AO, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the addition made by the Ld. AO and dismissed the appeal of the assessee. 5. Aggrieved with the order of the Ld. CIT (A), the assessee is in further appeal before thi....

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....be treated as a dumb document and the addition was rightly made. 7. We have heard the rival submissions and examined the material available on record. On perusal of the unsigned agreement of sale (placed at page nos. 38 to 42 of the paper book) and the actual registered sale deed (page nos. 58 to 69 of the paper book), we find that there are significant similarities in both the documents. The name of the vendee, namely Shri Badepally Lakshmaiah, is the same in both documents. The property sold is also the same. Further, the vendor mentioned in the unsigned agreement of sale, namely Shri N. Ajay Reddy, is the son of the assessee and also signed the final registered sale deed as General Power of Attorney holder on behalf of the assessee. W....