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2016 (9) TMI 1577 - ITAT CHANDIGARHReopening of assessment u/s 147 - Addition on photo copy of unsigned agreement found during the course of search and transferred to the AO - HELD THAT:- This unsigned agreement have been forwarded by DCIT, Central Circle-I Ludhiana to the AO on the basis of which the aforesaid reasons have been recorded by AO for re-opening of the assessment. Since the seized document is not found from the possession of the assessee and admittedly the assessee had not signed the agreement in question and since he had not signed the agreement, no liability could be attributed qua that agreement towards him, since he was not a party to the agreement till he had signed the agreement. The decisions in the cases of Kulwant Rai [2007 (2) TMI 185 - DELHI HIGH COURT] and Smt. Darshan Kaur [2009 (12) TMI 1039 - PUNJAB AND HARYANA HIGH COURT] squarely apply to the fact of the case since photo copy of unsigned agreement was found, therefore, it cannot be read in evidence against the assessee It is not a valid document to be considered adverse in nature against the assessee, therefore, there is no reason to believe for the Assessing Officer to have any information that income chargeable to tax has escaped assessment. Authorities below have been holding that the agreement in question is admissible against the assessee because two of the cheque amounts mentioned in the agreement tally with the sale consideration mentioned in the sale deed of Shri Bhagveer Singh dated 21.05.2008. The date of sale deed i.e. 21.05.2008 would not fall in assessment year under appeal i.e. 2008-09 and there is no evidence or material available on record to prove genuineness of the photo copy of the unsigned copy of the agreement. Merely because some cheque amount is same in both these documents, would not prove that addition could be made against the assessee on the basis of photo copy of unsigned agreement - No reason for the authorities below to hold that the contents given in the photo copy of unsigned agreement are correct. Since on the basis of unsigned agreement, no liability could be attached to the assessee and it is not admissible in evidence against the assessee, therefore, there is no valid reason recorded by the AO for the purpose of re-opening of the assessment in the matter. There is also no basis for making any addition on merit on the basis of photo copy of unsigned agreement. AO wholly unjustified in re-opening of the assessment under section 147/148. - Decided in favour of assessee.
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