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2022 (9) TMI 1440 - ITAT AMRITSARAddition of on money receipt for computation of long term capital gain - reliance on rough loose paper of diary containing scattered jotting of expenses, seized from the premises of the appellant, during the course of search u/s 132(4) - presumption u/s 292C - HELD THAT:- As rough noting/jotting in the diary, appears to be pertains to some petty expenses, under the head ‘434 Ex’ which stands for ‘Expense’ being incurred on renovation of house no.434, New Jawahar Nagar, by the assessee during the month of October 2009 and these do not pertain to the year under consideration. Actual transaction relating to the said property have duly been reflected by the appellant in the ITR’s along with consequent ‘Capital Gains’ arising there from, being duly been offered for taxes. Nothing has been brought on record, either by the AO or the CIT(A) to establish that purchaser has made any payment over and above the disclosed amount by way of corroborative documentary evidence either from the witnesses end or purchaser end that assessee has received any on money. In our view, such an addition being made purely on the basis of inferences drawn from diary rough noting without any nexus or support of the authentic documentary evidences such as registered deed/ or agreement to sale were being brought on record to prove that assessee has received ‘On money’, cannot be sustained. Thus without substantiating the content of the noting in the diary, the value adopted by way of decoding by the authorities below based on assumption, presumption and guess work is illegal and against the law. Since, the diary jottings have not been corroborated from any relevant material documentary evidence and hence, the jottings in the diary by no stretch of imagination can be accepted as an evidence or conclusive proof of ‘on money’ transaction by the assessee for the purpose of presumption u/s 292C of the Act against the assessee. Addition was being made on the basis of uncorroborated rough noting of paper/diary. CIT(A) has deciphered the figures on the paper by decoding in the form of Indian style and international style at his whim and caprice based on presumption and conjectures without bringing any corroborative material evidence in support for such assumption of the decoded figures is not justified. Accordingly, the addition on account of on money receipt for computation of long term capital gain is deleted. Decided in favour of assessee. Disallowance on account of the cost of improvement expense claimed by the assessee - Respectfully following Coordinate Amritsar Bench decision on the identical facts in the case of “Krishna Kumar Mittal [2019 (3) TMI 1757 - ITAT AMRITSAR] we hold that in the absence of incriminating material, disallowance made on account of the cost of improvement expense is deleted.
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