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2017 (9) TMI 1515 - AT - Income TaxAddition on the basis of an entry found in the books of third party - entry found in the "bahi" of third party - Held that:- The word "Cosmos" cannot ipso facto be interpreted to represent the name of the assessee which is "M/s. Cosmos Infra Engineering Ltd". There may be any party, company or firm with the initial name "Cosmos" and it does not show in any manner that the said entity belongs to the assessee-company only. Further, that there was no evidence that the assessee has involved into any transaction with any entity of M/s. Mahesh Mehta group. The entire addition has been made on assumption and presumption basis. CIT-A made an observation that it was not on record that as to what was the version of M/s. Mahesh Mehta group about this entry recorded in the "bahi" found at his residence. Under such circumstances when even the third party from whose premises the alleged documents were found, has not confirmed that the said entry belong to the assessee, there was no question of any assumption or belief that the entry belonged to the assessee. any entry found on loose papers in the premises of the third party without any corroborative evidence, cannot be made basis for addition in the case of the assessee. During the course of search at the premises of the assessee, no incriminating material relating to the above stated entry had been found. We, therefore, do not find any justification on the part of the lower authorities to make addition - Decided in favour of assessee.
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