2007 (3) TMI 226 - DELHI HIGH COURT

Addition on Unexplained loans advanced and the interest earned - dumb document - Tribunal deleted the addition - HELD THAT:- In the present case the Assessing Officer has placed reliance on the statement of Smt. Sarla Gupta, daughter of the assessee while arriving at the conclusion that the entries belong to the transactions of the assessee. This statement made by Smt. Sarla Gupta cannot be said to be relevant or admissible evidence against the assessee, since the assessee was not given any opportunity to cross-examine her and even from the statement, no conclusion can be drawn that the entries made on the relevant page belong to the assessee and represent his undisclosed income.

It is also an admitted fact that the statement of the assessee was not recorded at any stage during the assessment proceedings. The only conclusion which can be drawn about the nature and contents of the document is that it is a dumb document and on the basis of the entry of notings or figure etc. in this document, it cannot be concluded that this represents the undisclosed income of the assessee.

No fault can be found with the view taken by the Tribunal. Thus, the order of the Tribunal does not give rise to a question of law, much less a substantial question of law, to fall within the limited purview of section 260A of the Act, which is confined to entertaining only such appeal against the order which involves a substantial question of law.

Accordingly, the present appeal filed by the Revenue is, hereby, dismissed.