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2020 (9) TMI 1009 - AT - Income TaxAddition on the basis of Central Bureau of Investigation (CBI) report - criminal conspiracy - Assessee being govt officer (treasury officer) - allegation of dishonestly caused withdrawal from the public exchequer against a Letter of Credit (LOC) - AO considering the charge sheet filed by CBI, was of the opinion that assessee was involved in the LOC scam and the assessee might have received pecuniary benefit i.e. a share of the scam - HELD THAT:- Assessee was not even made an accused by the CBI while submitting the offence/charge under sec. 173 of the Cr. P. C. and was not convicted also by the Special Judge, CBI and also taking note of the corroborative evidence which is the certificate issued by the Special Judge, CBI (supra) dated 07.07.2015 showing the assessee was not proceeded against by CBI or Special Court in the case, therefore, there was no basis for the addition. We note that the AO has made the addition only on the basis of the allegation on the part of the Investigative Agency i.e. CBI investigating the LOC scam at the F.I.R. stage where assessee’s name also figured and that event made the AO saddle the assessee with the addition. Now since the foundation of the addition has gone, the addition cannot be sustained. We note that the AO in the second and third round has simply reiterated the addition and there was no other material other than his reiteration of the original assessment. Therefore, taking note that the foundation of the addition since has been removed, the super structure cannot survive and it falls, therefore, the addition made by the AO and confirmed by the Ld. CIT(A) is directed to be deleted. Assessee appeal allowed.
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