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2016 (12) TMI 456

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..... tion Act contemplates that any immovable property having value of more than ₹ 100/- cannot be transferred unless it is registered. Then, what would be evidentiary value of such document. It appears that authorities have been influenced in the quantum proceedings by the pendency of criminal proceedings for prosecution of the assessee on account of corruption. Allegation against the assessee was that he was accepting ₹ 80,000/- as bribe. This appears to be main reasons for making addition on the basis of circumstantial evidence. AO failed to prove that explanation of the assessee was false. There is no concrete positive evidence against the assessee exhibiting unexplained investment, except unregistered sale deed, which does not c .....

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..... i-Corruption Bureau and ultimately a search was carried out at the residence of the assessee as well as a trap was laid to catch the assessee redhanded for accepting a sum of ₹ 80,000/-. Criminal case bearing ACB No.13/2003 was instituted against the assessee and charge-sheet was framed. It appears that in consequence of the search by ACB at the residence of the assessee, the AO has got information and assessment of the assessee was reopened by issuance of notice under section 148 of the Income Tax Act on 12.5.2004. In the re-assessment order, the ld.AO has made two additions i.e. a sum of ₹ 36,500/- which was found to be deposited in the bank account of the assessee on 30.4.1999. The AO also made an addition of ₹ 1,15,000 .....

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..... peal of the State Government and upheld the acquittal of the assessee vide order dated 7.3.2012. The judgment of the Hon ble High Court was challenged before the Hon ble Supreme Court in CRLMP No.24543/2014. The Hon ble Supreme Court has dismissed the SLP of the State Government vide order dated 18.12.2014. Copy of the Hon ble Supreme Court s order has also been placed on record. On the strength of these documents, it has been contended that no disproportionate assets alleged to be procured by the assessee, was upheld. The Prosecution has failed prove that the assessee has demanded any bribe or has accepted a sum of ₹ 80,000/- from the complainant. 5. The ld.counsel for the assessee further contended that explanation of the assesse .....

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..... on shall pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits: Explanation 1- Where in respect of any facts material to the computation of the total income of any person under this Act, (A) Such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the CIT to be false, or (B) s .....

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..... 1(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT(Appeal); and, (b) where in respect of any fact, material to the computation of total income under the provisions of the Act, the assessee is not able to substantiate the explanation and the assessee fails, to prove that such explanation is bona fide and that the assessee had disclosed all the facts relating to the same and material to the computation of the total income. Under first situation, the deeming fiction would come to play if the as .....

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..... d on the birth-day of his son. Such gifts were received from relatives. As far as second addition is concerned, it is based on a document which was found during the course of search at the residence of the assessee. This document is unregistered sale deed. An unregistered sale deed does not confer any title. There is nothing on record which can conclusively say that title of this land vested with the assessee, more so, it was cancelled. Section 17 of the Registration Act contemplates that any immovable property having value of more than ₹ 100/- cannot be transferred unless it is registered. Then, what would be evidentiary value of such document. It appears that authorities have been influenced in the quantum proceedings by the pendenc .....

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