Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2111 - ITAT MUMBAIAssessment u/s 153C - Undisclosed investment in payment of consideration towards purchase of land at village Kharigaon, Taluka & Dist. Thane - Held that:- The assessee had filed explanation and its version regarding the first draft agreement which has not been disproved by the Assessing Officer. Once the assessee had explained that the first draft agreement was never executed and also the reasons as to why it was not executed and also proved that the second draft agreement was made which was further corrected and improved and was finally acted upon, the burden shifted upon the A.O. to disprove the explanation offered by the assessee, which the A.O. has failed to discharge. The another pertinent fact is that the second draft agreement was also found during the search action and cannot be said to be an afterthought of the assessee. The Assessing Officer has failed to prove that any cash transaction had been undertaken between the assessee and the sellers of the land in question. No such evidence has been brought on record before us by the authorities below. In our view, the addition on the basis of unsigned, undated draft agreement, the figures written on which had been struck off, cannot be a basis of addition in this case, especially in the absence of any other incriminating or corroborating evidence of exchange of cash. So far as the addition on the basis of loose paper in relation to payment made to Sh. Mukund keni is concerned, the notable fact is that it has been mentioned in the lose papers that ₹ 60 lakh was paid by cheque and the other figures mentioned were ₹ 20 lakh by cheque and ₹ 1.50 crore by cash. The stand of the Assessing Officer has been that the amount of ₹ 1.50 crore was paid in cash. However, the Assessing Officer even could not prove the payment of ₹ 20 lakh which was also mentioned to be paid by cheque. Whereas, the assessee has explained that the originally ₹ 60 lakh were paid by cheque and out of which ₹ 40 lakh was received back by the assessee from Shri Mukund Keni and that the deal has not been finalized till date. When there is no evidence about the payment of amount of ₹ 20 lakh by cheque about which the investigation wing /search party has made thorough investigations, then the presumption about the payment of cash cannot be drawn under such circumstances. The additions solely on the basis of suspicion, how strong it may be, in our view, are not sustainable in the eyes of law. We therefore set aside the impugned additions made by the lower authorities. - Decided in favour of assessee.
|