Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 359 - AT - Income TaxReopening of assessment u/s 147 - Unaccounted income - Onus to prove - Addition based on seized loose papers - assessee obligation to explain the entries found in the seized documents - HELD THAT:- The assessee by furnishing the documentary evidence can rebut the presumption specified under section 292C We find that the assessee has furnished the necessary details such as ledgers, confirmation from the clients stating that the cash received from these parties were for certain expenses to be incurred on behalf of the clients - amount of fees received by the assessee in the form of cheque was only the income of the assessee. Now, the onus shifted upon the AO disprove the contention of the assessee. For this purpose, the AO has been given enough power under the provisions of law especially under section 133(6)/131(1) of the Act. But we find that no such power was exercised by the authorities below. We find in the case of CIT vs. Paeveen Juneja [2017 (7) TMI 1172 - DELHI HIGH COURT]. As seized document is a piece of evidence which play a vital role to determine the income of the assessee. But such document cannot give absolute power to the authorities below to work out undisclosed income of the assessee without bringing corroborative evidences. The seized document give the information to the AO to dig out the facts in more detail that too in a particular direction. The seized documents must be supported based on other materials indicating that cash received by the assessee was either available or it was utilized in some other manner. Thus, based on piece of lose paper, nothing adverse can be drawn against the assessee without verifying or bringing other corroborative evidences to support the case of the revenue. We are not inclined to confirm the order of the authorities below. Hence, we set aside the order of the learned CIT (A) and direct the AO to delete the addition made by him. - Decided in favour of assessee.
|