TMI Blog2015 (9) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the said seized documents. - Decided against the revenue. Addition of capital gains received on surrender of tenancy right under section 55(2)(a) - ITAT deleted the addition - Held that:- As found by the Tribunal, in view of section 158BB in the absence of any corroborative evidence the addition cannot be made on the basis of presumption. The judgement in CIT vs. Ashim Krishna Mondal (2004 (7) TMI 80 - CALCUTTA High Court) very succinctly lays down the principle of law that computation is different from estimation and computing an income under section 158BB cannot be on the basis of conjecture and surmise. In the case in hand, as the addition of ₹ 25 lakhs was made in violation of section 158BB which stipulates that computa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lkata in Income Tax Appeal bearing IT (SS) A. No.33/Kol/2000 for the block assessment period from 1st April, 1987 to 12th December, 1997 whereby the appeal filed by the department was dismissed. The facts, which are relevant for consideration, are as under:- On 12th December, 1997 there was a search and seizure under section 132(1) of the Act at 20 Manohar Lal Street, Kolkata. The Assessing Officer, on scrutiny of the seized books of K.K.Mahipal, assessee s brother, found that the assessee and his family members had advanced a sum of ₹ 8,45,247 on 11th May,1996. As the assessee failed to explain such advance in cash, the Assessing Officer treated the same as undisclosed income of the assessee under section 69 of the Act for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first question is concerned, we find that the Assessing Officer has made the addition of ₹ 8,45,247 merely on the basis of papers seized from the possession of K.K.Mahipal, the assessee s brother. Save and except the said papers, the Assessing Officer did not bring any corroborative material to prove that the assessee and his other family members had advanced the said amount to K.K.Mahipal. In order to saddle the assessee with such addition of income, in our view, the materials sought to be relied on have to be corroborated. In the instant case, it was neither corroborated nor the assessee, at any stage of the proceedings, was confronted with the said seized documents. Therefore, the first question is answered in the negative, in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax : (2012) 347 ITR 420 (Cal) relied on by Mr. Agarwal is distinguishable on facts as therein the appellant s statement was corroborated by the paper seized which is lacking in the case in hand. The judgement in CIT vs. Ashim Krishna Mondal : (2004) 270 ITR 160 (Cal) very succinctly lays down the principle of law that computation is different from estimation and computing an income under section 158BB cannot be on the basis of conjecture and surmise. In the case in hand, as the addition of ₹ 25 lakhs was made in violation of section 158BB which stipulates that computation has to be made on the basis of material or information available with the Assessing Officer which is lacking in the instant case, and as in our view, the statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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