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2021 (10) TMI 1092 - AT - Income TaxUndisclosed capital gain - during the course of search and seizure operation u/s 132 carried out on the residential premises of assessee’s brother, certain documents relating to the assessee were found - Capital gain returned by the assessee on sale of property jointly owned with his brother - HELD THAT:- Only documentary evidence available in the present case is the registered sale deed which records and confirms the sale consideration declared by the assessee of ₹ 68 lacs. No other evidence whatsoever contradicting the sale consideration mentioned in the registered sale deed has been found. Also not denied that no investigation, with regard to the difference in the sale consideration as stated by Shri Surinder Singh Bindra and as recorded in the registered sale deed, was done by the AO. On the contrary, we find, he merely jumped on the oral statement of Shri Surinder Singh Bindra taking it to be a solemn truth merely because it was a statement recorded on oath, totally disregarding the registered documentary evidence being the sale deed. A registered sale deed cannot be summarily dismissed as evidence when juxtaposed with the oral statement alone that too only of one of the parties to the transaction even when made on oath. The statement, to carry weight as evidence needs to be supported with other evidences. The statement at best raises a suspicion about the consideration exchanged in the transaction which should prompt further inquiries, but oral statement even if recorded on oath alone is not sufficient to contradict/displace a duly registered documentary evidence. We agree with the Ld.Counsel for the assessee that the conclusion of the AO that the excess consideration was received, was based on mere surmises and lacked being backed by any evidence documentary or otherwise of any sort. Thus approach of the revenue authorities in treating the oral statement of the searched person as sacrosanct in total disregard to the registered documentary evidence available, is not in accordance with law and the addition made, therefore, by holding that the surplus consideration was received in the impugned transaction in the hands of the assessee is, therefore, directed to be deleted. Ground of appeal raised by the assessee allowed. Addition applying GP rate to contract receipts of the assessee - HELD THAT:- In the present case it is not denied that the husband of the assessee, who was the person searched wherein documents relating to his wife, the assessee before us, were found, had himself stated to the authorities of having earned 8% to 9% profits on the receipts. Moreover, as rightly pointed out by the Ld.CIT(A), even Legislature has considered a net profit rate of 8% to be appropriate for contract receipts in the presumptive scheme of taxation. Therefore, we see no reason to interfere in the order of the Ld.CIT(A) restricting the net profit rate of 8% of the contract receipts.
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