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2013 (7) TMI 687 - ITAT MUMBAISearch and Seizure - Whether Documents seized are ‘Dumb Documents’ – Presumption u/s 292C - Held that:- The document seized from the appellant's premises are not dumb documents. Names of the partners and contractors are appearing in seized material. From the words "Extra Bill", "Adjustment Bills", it is clear that the appellant has inflated the expenses. It is the duty of the appellant to explain the nature of the expenses and the sources for such expenses - The decisions relied on by the appellant is distinguishable since those cases are concerned with dumb documents – Decided in favor of Revenue. Documents seized not mentioned in panchnama - Relevant Page-71 appearing in the loose paper of Annexure A-1, which has been placed in the paper book at Page-77 was not found during the course of search and seizure action in case of the assessee from any of its premises – Held that:- In the panchanama prepared in case of the assessee this annexure or document does not find any mention about such kind of annexure or loose paper - The loose papers which have been mentioned in the panchanama are entirely different and the annexure "A-1 / Page-71" on which the Assessing Officer has placed reliance is entirely different - The alleged seized document on which the Assessing Officer has made the addition does not belong to the assessee and, hence, no addition is called for. Further, the said document which contains some entries is not based on double entry system as there is no matching debit / credit side entries. Various instances have been pointed out to show that there is no co-relation between the debit and credit side entries and, hence, it cannot be said that these entries suggest any kind of inflated expenses. Even the Assessing Officer not mentioned as to from where the document was found. If that is the fact, then, there cannot be any presumption under section 292C which postulates that onus is upon the assessee to explain the nature of all the documents and the entries given therein, if found from the possession of the assessee at the time of search. Under these facts and circumstances and without going into the merits of the addition, this matter required to be restored back to the file of the Assessing Officer to verify this fact – Decided against the Revenue.
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