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2019 (5) TMI 886 - AT - Income TaxUnexplained income based on receipt given by the appellant as security - Addition u/s 69 - survey under section 133A - Addition based on 1 memorandum of understanding and 1 receipt was found in survey - HELD THAT:- It is very important to note that had this transaction actually taken place, then along with the memorandum of understanding and the receipt the relevant documents/title deed of the property, should also have been found from the premises. No question has been raised by the AO about the existence of the documents of that property in the form of title deed et cetera. Though the memorandum of understanding and receipt were found from the office of the assessee however in absence of any corroborative material the addition cannot be made. Further the memorandum of understanding that has been found from the office of the assessee was not signed at all by the assessee. Even the property mentioned in that particular memorandum of understanding was never transacted at all. Further on reading of the memorandum of understanding it is clear that Mr. Jayant did not have any right in the property. Preamble of the memorandum of understanding clearly shows that the property is in dispute. The assessee has also explained the other transactions entered into by Mr. Jayant with the assessee. Further the receipt found from the office of the assessee was also not dated and therefore it was not known that on which date the assessee has paid the alleged money to Mr Jayant - there is no signature of another party on the memorandum of understanding itself. Further on the receipt also the signature of these 2 parties have been obtained, however none of the parties confirmed that in fact there witness to the payment of INR 7,500,000 by assessee to Mr Jayant. Thus property did not belong to Mr Jayant, even otherwise he did not have any right to sell this property, property mentioned in the memorandum of understanding remains untransacted, no enquiry by the learned assessing officer with respect to the original title deed of the property mentioned in the memorandum of understanding along with the receipt but not found during the course of search, memorandum of understanding not signed by the assessee,confirmation of both the parties that the transactions have not fructified, version of the witness not confirming the memorandum of understanding and in absence of any corroborative material found during the course of search with respect to the above property, We are not inclined to confirm the above addition. - Decided in favour of assessee.
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