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Issues involved: Appeal against deletion of addition u/s 132(4A) of Income Tax Act based on seized material.
Summary: 1. The Revenue appealed against the Income Tax Appellate Tribunal's decision to delete an addition of Rs. 30,27,987 based on seized documents, questioning the application of section 132(4A) of the Income Tax Act, 1961. 2. The dispute arose when documents related to oil business were found during a search at the assessee's premises, who disowned them, claiming to be in the transportation business. 3. The Assessing Officer invoked section 132(4A) to presume the documents belonged to the assessee and made the addition, which was upheld by the Commissioner but overturned by the Tribunal. 4. The Tribunal found that the seized documents lacked a connection to the assessee's business activities, citing case laws to emphasize the need for nexus with unaccounted business for additions based on seized documents. 5. The Revenue argued that the Tribunal erred in disregarding the presumption u/s 132(4A) and the assessee's unsatisfactory explanation for the seized documents. 6. The High Court upheld the Tribunal's decision, noting that the presumption u/s 132(4A) is rebuttable, and in this case, the documents did not link the assessee to the oil business, with no further inquiry by the Revenue. 7. The Court found no perversity in the Tribunal's conclusions and dismissed the Tax Appeal.
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