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2024 (4) TMI 924 - ITAT DELHIAddition in assessment u/s 153C - Addition u/s 69 - addition on basis of loose papers on which name of the appellant was mentioned along with some other parties - HELD THAT:- The appellant agreed to purchase plot having size of 300 sq. meters for a total consideration of Rs. 27,00,000/-. Out of the total consideration of Rs. 27,00,000, a payment of Rs. 24,30,000 was already made by the appellant. Annexure LP-2 is a sheet which mentioned name of those farmers who have sold the land/plots to certain individuals (including the appellant) along with the plot size purchased. This page also has information of amount but there is no evidence to show what is the context for mentioning these amounts. In the impugned assessment order, the addition is made by the assessing officer solely based on this loose sheet. The AO had inferred that amount of Rs. 9,00,000 mentioned against the name of Sh. Vipul Gupta actually represents 10% of the total consideration i.e. Rs. 90,00,000/-. Against the said alleged value, the assessing officer held that amount of Rs. 27 lacs has been paid by the appellant through banking channel and the balance amount was alleged to have been paid in cash merely on the basis of surmises and conjectures and but same is mere work of speculation. As observed in the case of Sh. Rishi Aggarwal [2023 (12) TMI 1304 - ITAT DELHI] there is no corroborative evidence. AO did not consider the need to summon the seller or the person searched, or to record the statement of the author/searched person/seller by giving an opportunity to assessee to cross examine the said person. AO has not even made any enquiry about the value of the property purchased by the assessee. Since the document relied as incriminating material to make addition in assessment u/s 153C of the Act, is not one which is kept in ordinary course of business, and the author of the document is not identified and disclosed to the assessee and the transaction is not verified by any enquiry, then only on the content of the documents the addition is not justified. Thus after taking into consideration, the decision of Sh. Rishi Aggarwal (supra) as such nothing is required to be determined on first principle basis. Thus, the grounds raised by the assessee are sustained. The appeal of the assessee is allowed.
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