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2020 (3) TMI 1196 - AT - Income TaxAssessment u/s 153C - Unexplained cash receipt u/s 69A - HELD THAT:- The only basis of making impugned addition was loose paper found at the premises of the third party. However, no corresponding incriminating material was found from assessee’s premises which would corroborate the same. In fact, each and every document impounded from assessee’s premises was explained during the course of assessment proceedings and no infirmity could be found in the same. It was incumbent upon Ld. AO to make further inquiries in the matter to substantiate the veracity of the loose paper and bring on record cogent material / evidences to establish that cash was received by the assessee. In the absence of any such incriminating material/ evidences, no such addition could be made in the hands of the assessee. It is also evident that booking of flats against which the cash was alleged to be received by the assessee was already cancelled much before the date of search and cheque amount was already refunded by assessee to other party which would further weaken the stand of Ld.AO. Therefore, no fault could be found with the approach of Ld. first appellate authority. Our view find support from the decision rendered in CIT V/s Maulikkumar K.Shah [2007 (7) TMI 267 - GUJARAT HIGH COURT]wherein Hon’ble Court refused to admit revenue’s appeal, inter-alia by noting that Ld. AO had not brought any corroborative material on record to prove that on-money was received. The onus was on revenue to prove with corroborative evidence that the entries in the seized dairy actually represented the sales made by the assessee. Mere entries in the seized material was not sufficient to prove that the assessee has indulged in such a transaction - additions based on mere presumptions and assumptions and without any corroborative evidence could not be sustained. - Decided against revenue.
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