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2015 (5) TMI 677 - ITAT CHANDIGARHUnexplained investment in the purchase of land - copy of agreement was seized from the sister concern of the assessee which shows the rate of land was at ₹ 6,50,000 per bigha instead ₹ 1,25,000 per bigha declared, in the registration deed - CIT deleted the addition - Held that:- The Assessing Officer has relied upon the copy of the agreement to sell seized during the course of search operation, which has admittedly been cancelled by the parties by marking cross on the same. It is also admitted fact that the said agreement in question did not have any proper identification of the land proposed to be sold. No specific property is mentioned in the said agreement for the purpose of sale. No evidence has been brought on record if the said agreement to sell was acted upon by the concerned parties. The seller to the agreement to sell or the witnesses to the agreement to sell have not been examined either by the search party or the Assessing Officer. No evidence has been found during the course of search to prove if any over and above consideration have been paid in respect of any property purchased by the assessee. Since the agreement in question is cancelled document and did not relate to the assessee directly or indirectly, therefore, the Assessing Officer has merely inferred that the assessee might have paid some more consideration over and above what is stated in the registered documents. It was merely the suspicion of the Assessing Officer to make addition against the assessee. However, it is well settled law that suspicion, whatsoever may be strong, cannot take place of legal proof. In the absence of any adverse material against the assessee, we do not find any justification to interfere in the order of CIT(Appeals) in deleting the addition. - Decided in favour of assessee.
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