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2020 (5) TMI 110 - AT - Income TaxLong term capital gain computation - determination of value of the land - whether the assessee has sold the land in dispute as per the Sanakhat found during the course of search under section 132 or as disclosed in the registered document - HELD THAT:- The provisions of section 48 of the Act does not refer to take the fair market value as the sale consideration. Entire thrust of the AO for making the addition was based on Sanakhat found during the course of search. But the AO has not brought anything on record for any movement of the fund received by the assessee over and above the value declared in the registered documents. Regarding the receipt of money of ₹2.65 crores from Rajat Finance private Ltd, we find that such money was returned back by the assessee in the subsequent year and this fact was not doubted by the authorities below. Accordingly, the receipt of such money cannot be treated as consideration received by the assessee against the transfer of the land. Even the value determined by the DVO suggest the fair market value at ₹ 13.87 Lacs only. Thus we are of the view that the value as adopted by the AO for ₹ 4.65 crores treating the sale consideration is not sustainable. The impugned transaction cannot be treated as colourable device adopted by the assessee to escape from the income tax liability. Accordingly we are of the opinion that the principles laid down in the case of McDowells[1985 (4) TMI 64 - SUPREME COURT] cannot be applied in the case on hand. In view of the above, the ground of appeal of the Revenue is dismissed. Addition being the income admitted during the search action - whether the amount mention in the seized documents represents the income of the assessee as alleged by the AO? - HELD THAT:- Information contained in the seized documents are just the information without any support and therefore no credentials can be given to such information until and unless it is based on some materials. As such, seized loose documents found during the search should be read in association with the other materials before reaching to the conclusion that such seized material represent the income of the assessee. We also note that the lose paper found during the course of search did hold evidentiary value unless the same is supported by cogent material. See COMMON CAUSE (A REGISTERED SOCIETY) AND OTHERS VERSUS UNION OF INDIA AND OTHERS [2017 (1) TMI 1164 - SUPREME COURT] Documents seized during the search proceedings is nothing but representing the dumb documents and therefore no additions based on the same can be made in the hands of the assessee. No reason to interfere in the order of the ld. CIT-A and direct the AO to delete the addition made by him. - Decided against revenue.
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