2026 (4) TMI 39

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....ssessee is addition of unexplained investment for Rs. 156.51 Lacs. The appeal arises out of the order of learned Commissioner of Income Tax (Appeals)-3, Gurgaon dated 29-01-2025 in the matter of an assessment framed by Ld. AO u/s 153A(1)(b) r.w.s. 143(3) of the Act on 31-12-2018. 2. The aforesaid appeals were heard along with other appeals of the assessee-group. The lead order has been passed by us in the case of Shri Arvind Kumar Aggarwal (ITA Nos. 343/Chandi/2025 & Ors.). It was admitted position that facts as well as issues, qua this addition, are pari-materia the same and therefore, our adjudication therein would equally apply to all these appeals. Having heard rival submissions, the appeal is disposed-off as under. 3. The impugne....

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....aterialize. The Ld. AO made filed enquiries which revealed that Project No.1 was not physically found by the field inspector. With respect to Project-2, it transpired that the said project was carried out on ancestral land owned by Shri Shiv Charan Singh. The land was sold to Shri Mewa Singh starting from May, 2016 and transfer was completed only on 01-08-2017 which is much after the date of search. The whole consideration was paid by Shri Mewa Singh through cheques only. Thereafter, Shri Mewa Singh plotted shops and sold the same through property dealer Shri Gurvinder Singh. The Ld. AO alleged that Shri Mewa Singh was man of no means to carry out such transactions. The investments were made by other persons including the assessee. The said....

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....nce to corroborate the entries found noted in the seized material. The court, thus, concluded that loose sheets / papers are not admissible as evidence. Further, even if same are held to be admissible, additions could be made only if the entries were corroborated by any evidence. The corroboration of entries is completely missing in the present case. Therefore, the documents as found are to be considered as dumb documents only, which, on standalone basis, could not sustain the additions as made by Ld. AO. We also concur that the statement made by the assessee u/s 132(4) stood retracted subsequently by way of elaborate explanation and accordingly, unless corroborative evidences were brought on record to support the allegation, the retracted ....

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....the residence of Shri Arvind Kumar Aggarwal. The Ld. AO alleged payment of unexplained expenditure by the assessee and made impugned addition. Since, we have discarded the addition made by Ld. AO on the basis of loose sheets in the case of Shri Arvind Kumar Aggarwal in captioned appeals, taking the same view, the impugned addition stand deleted. The legal grounds have been rendered academic in nature. The appeal stands partly allowed. 6. In AY 2016-17, Ld. AO has disallowed bank interest for Rs. 23,01,664/- while framing an assessment u/s 153(1)(b) r.w.s. 143(3) of the Act on 30-12-2018. The assessee filed regular return of income u/s 139(1) on 30-09-2016 which apparently attained finality. In response to notice u/s 153A, the assessee fi....