TaxTMI 
TaxTMI 
2024 (7) TMI 1208
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....5,000/- on account of alleged investment in the immoveable property by just relying upon the statement recorded during search and without any incriminating evidence. 2. That the Ld. CIT(A) has failed to apply the binding judgment of ITAT, Chandigarh Bench that statement recorded during the course of search cannot be an incriminating evidence and further without making any enquiries from the seller, the very basis of making the addition on the basis of oral statement, ignoring the documentary evidence of the valid registration, the CIT(A) was not justified in upholding the addition in view of the judgment in the case of K.P. Varghese, reported in 131 ITR 597. 3. That the Ld. CIT(A) has also failed to appreciate that the documentary evide....
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....ne has evidentiary value." 5. The ld. CIT(A) has stated that the statement of the Assessee was recorded when the Assessee was in a completely healthy state of mind. On this issue, the CIT(A) has further given his finding that during the search, as per Annexure A-6, which is a part of a writing pad on some of the pages amount, name of persons from whom they have taken along with dates are mentioned. The Assessing Officer has taken them as sources of cash component of payment for the purchase of the property and the ld. CIT(A) has confirmed the addition. During the proceedings before us, the ld. Counsel of the Assessee has filed a written submission on this issue which are as under: - "2.... a) It is a fact that the assessee is an illite....
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....ted evidence have been found during the course of search that the assessee has made any payment in cash. viii). The assessee is an uneducated person and his statement as recorded during search, no where proves that cash has been paid. ix). However, the Assessing Officer in a summary manner by relying upon the statements recorded during search has made the addition of Rs. 25,85,000/- as alleged amount paid in cash towards the purchase of property, which is a wrong assumption on the part of the Assessing Officer. x). Our reply as quoted by the Assessing Officer at page 42, is being relied upon and there is no adverse view drawn on the basis of same statement in the case of his wife, Smt. Anita Devi. 3. The assessee filed an appeal bef....
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....der section 69B was to be deleted -Whether SLP against said decision was dismissed -Held, yes". 8. We have considered the findings of the ld. CIT(A) on this issue and we have also considered the written submissions and arguments made by the ld. Counsel of the Assessee during the proceedings before us and the orders of the Hon'ble Supreme court of India on this issue in the case of 'CIT Vs. Mantri Share Brokers (P.) Ltd., (supra) and the Chandigarh Bench of the ITAT in the case of 'Dy. CIT vs. Partap Singh Rajendra Chamola & Co.' In this case, the ITAT Chandigarh Bench has held "No addition in block assessment can be made solely on the basis of statements recorded during search. Such statements cannot be treated as incriminating materia....
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....ch was mentioned. The Assessing Officer asked the Assessee to explain it. In the assessment order, the A.O. has mentioned Assessee's reply as under:- "....in this regard, we have time and again clarified that these are rough notings in round figures without any significance and income repercussion. Further it is submitted that this document is basically a dumb document. There is no date on the said document and neither it indicates whether the amount has been paid or received. Therefore, any Ad-Hoc / Dumb Document without any corroborative evidence /finding that the alleged documents have materialized into transactions cannot be deemed to be the income of the assessee. It is respectfully submitted that even in your SCN, it is not clear as....