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2023 (4) TMI 498 - AT - Income TaxAssessment u/s 153A - Search and seizure was conducted u/s 132 at the premises of the assessee - addition was being made on the basis of uncorroborated rough noting in a diary - presumption u/s 292C of the act for the purpose of assessing the undisclosed income - Credibility of rough blank figure/jotting in a diary - addition on account of unexplained expenditure on renovation of in cash u/s 69C on the renovation of her house - HELD THAT:- In the present case, the cheques amounts written in the alleged diary have been validated from the bank account statement and such Confirmation of cheque payments supports the fact that these relates to renovation/construction of the house. CIT(A) ought to have brought on record corroborative documentary evidence on record to interpret or decode the alleged notings/jotting as multiple of 100. Meaning thereby, the interpretation of the noting of entries/jotting in the diary by multiple of 100 has no basis therein and such an interpretation made on the basis of assumption, presumption and conjectures in absence of supporting corroborative evidence such application of money for alleged expenditure, renovation/construction material bills, payment of labor or even Department Valuation Officer report in order to estimate the expenditure is not tenable and cannot be approved. Addition was being made on the basis of uncorroborated rough noting in a diary. CIT(A) has deciphered the figures by decoding in the form of Indian style and international style at his whim and caprice based on presumption and conjectures without bringing any corroborative material evidence in support for such assumption of the decoded figures to multiple of 00 (stands 100) is not justified. AO had made no enquiry regarding the alleged disputed expenditure based on rough blank figure/jotting in a diary that what are the renovation/construction material bills, payment of labor or even not referred Department Valuation Officer’s report in order to estimate the expenditure on the said rough noting of the paper of diary which does not fall within the definition of ‘books of account’ or document. If, a rough diary paper seized without being corroborated with relevant documentary evidence to the effect to understatement the alleged renovation expenditure on the house, then it had no evidentiary value and it would not disprove the claim of the appellant that the jottings in the diary were actual figure of renovation expenditure on her house, According, same cannot form the basis for presumption u/s 292C of the act for the purpose of assessing the undisclosed income of the appellant assessee. Thus, without substantiating the content of the noting in the diary, the value adopted by way of decoding by the authorities below based on assumption, presumption and guess work is illegal and against the law. Since, the diary jottings have not been corroborated from any relevant material documentary evidence and hence, the jottings in the diary by no stretch of imagination can be accepted as an evidence or conclusive proof of ‘renovation expenditure in multiple of 00/100 by the assessee for the purpose of presumption u/s 292C of the Act against the assessee. Assessee appeal allowed.
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