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2015 (9) TMI 229 - HC - Income TaxAddition u/s 69 - Unexplained investments - ITAT deleted the addition - Held that:- AO has made the addition merely on the basis of papers seized from the possession of K.K.Mahipal, the assessee’s brother. Save and except the said papers, the Assessing Officer did not bring any corroborative material to prove that the assessee and his other family members had advanced the said amount to K.K.Mahipal. In order to saddle the assessee with such addition of income, in our view, the materials sought to be relied on have to be corroborated. In the instant case, it was neither corroborated nor the assessee, at any stage of the proceedings, was confronted with the said seized documents. - Decided against the revenue. Addition of capital gains received on surrender of tenancy right under section 55(2)(a) - ITAT deleted the addition - Held that:- As found by the Tribunal, in view of section 158BB in the absence of any corroborative evidence the addition cannot be made on the basis of presumption. The judgement in CIT vs. Ashim Krishna Mondal (2004 (7) TMI 80 - CALCUTTA High Court) very succinctly lays down the principle of law that computation is different from estimation and computing an income under section 158BB cannot be on the basis of conjecture and surmise. In the case in hand, as the addition of ₹ 25 lakhs was made in violation of section 158BB which stipulates that computation has to be made on the basis of material or information available with the Assessing Officer which is lacking in the instant case, and as in our view, the statement made on 20th February, 1998 by the respondent was incomplete and thus as the addition of ₹ 25 lakhs was solely on the basis of surmise and conjecture - Decided against the revenue.
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