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2019 (5) TMI 180 - AT - Income TaxReopening of assessment u/s 147 - addition u/s 69 - as alleged agreement to sell found from third party, assessee has given ₹ 1 crore in cash to M/s. Sabh Infrastructure Ltd., on account of purchase of property - HELD THAT:- Copy of the seized agreement to sell which is unsigned by any of the party to the agreement and even there is no witness to the said agreement. It was just a typed copy like photo copy as found during the course of search may be an electronic document found in search. Since it is not signed by the assessee or any other person on behalf of M/s. Sabh Infrastructure Ltd., therefore, it has no evidentiary value and cannot be read in evidence against the assessee. Similarly, the case of M/s. Sabh Infrastructure Ltd., was reopened by the A.O. for assessment year under appeal i.e., 2010-2011, but, no adverse inference has been drawn against the said Company and no addition on account of any amount received from assessee have been made in the case of their assessment u/s 147. There is no other tangible material on record to justify if assessee has paid any cash amount to M/s. Sabh Infrastructure Ltd., on account of purchase of any property. Therefore, in the absence of any tangible material and in the absence of any legally enforceable agreement found during the course of search, it is difficult to believe that assessee has paid any amount in cash to M/s. Sabh Infrastructure Ltd., as is mentioned in the reasons. No reason for the A.O. to record that there is an income escaped assessment on account of the fact mentioned in the agreement to sell. Also See SHRI KRISHAN GOPAL, PROP. M/S. KAY PEE LOCK INDUSTRIES VERSUS ITO WARD-39 (1) NEW DELHI [2017 (5) TMI 836 - ITAT DELHI] Considering the totality of the facts and circumstances of the case, we are of the view that there was no justification for the A.O. to record reasons for reopening of the assessment and there was no justification for the A.O. to record his belief that income chargeable to tax has escaped assessment in the matter. In view of the above discussion, we set aside the Orders of the authorities below and quash the reopening of the assessment u/s 147/148. Resultantly, the entire additions shall stand deleted. Appeal of Assessee is allowed.
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