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2023 (4) TMI 464 - ITAT DELHIAssessment u/s 153A - Addition on account of unsecured loans taken during the years under section 68 - HELD THAT:- Addition made was devoid of any incriminating material found and seized during the search. The date of search was 10.01.2012. The due date for issue of notice u/s 143(3) for the A.Y. 2011-12 has not expired. No appeal by the revenue for the A.Y. 2011-12. With regard to the earlier assessment years, the due date for issue of notice has been expired. Completed assessments can be interfered with by the AO while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. Hence, we decline to interfere with the order of the ld. CIT(A) and the appeal of the Revenue on the issue of addition u/s 68 for the Assessment Years 2007-08 to 2010-11 stands dismissed. Addition on account of alleged plots buy back, sale and interest earned - Addition based on noting in loose papers found during search - Revenue made the addition holding that the assessee could not file any evidence to substantiate the claim that the loose papers do not belong to him - HELD THAT:- The contents reveal that there has been a house which has been sold and also purchased 16 plots. The revenue has not even proved that the notings on the loose papers found, were written by the assessee nor his handwriting has been tested for. Further, inspite of conducting a search, no documents pertaining to purchase of the said house or sale of said house and purchase of 16 plots were found. Even in the post search inquiries none of the 17 properties could be traced out. There was no evidence in any of the bank statement with regard to the dealings. The inferences drawn were not backed by any tangible evidences or corroborative evidences. The revenue failed to establish the person to whom these documents belong, name or details of the persons from whom the alleged income was earned, any type of correlation with the business of the assessee. The statement recorded u/s 132(4) on the date of search has also not pointed to any reasonable evidence to come to a conclusion that the figures mentioned on the loose sheets infact constitute income of the assessee. In the instant case, the documents do not meet any of the criteria envisaged in Section 292C. Hence, we hold that an assessment carried out in pursuance of search, no addition can be made simply on the basis of uncorroborated noting in loose papers found during search because the addition on account of alleged receipts made simply on the basis of uncorroborated noting on loose papers made by some unidentified person and having no evidentiary value, is unsustainable. With regard to the interest earned, in the absence of any corroborative material and in the absence of non-taxing of the principle amount, the same is directed to be deleted. Addition u/s 68 - HELD THAT:- Before us, as submitted that the ITR, balance sheet has been submitted, the loan was confirmed by the lender, audited financial statement for the concerned year was filed which duly reflected the advance given to Shri Gurmeet Singh of Rs.50,00,000/-. The lender has a capital of Rs.77.53 crores and total advances given were to the tune of Rs.1.72 crores. The said amount has been lent from the regular account of Corporation Bank A/c - The confirmation is also on record and the revenue has not disputed the fact that this said account was not an undisclosed account. Hence we hold that no addition is called for on this account. As owing to the proof of identity, genuineness and creditworthiness of the loan party and the confirmation, the same stands deleted. Assessee appeal allowed.
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