The Income Tax Appellate Tribunal (ITAT), New Delhi bench comprising, Sh. Amit Shukla, Judicial Member and Dr B. R. R. Kumar, Accountant Member have held that the addition to income can’t be made unless it was proved with corroborative evidence.
On search and survey operation u/s 132/133A of the Income Tax Act, 1961 in SRM group of eases wherein papers/documents related to M/s Solitaire World Pvt. Ltd. were found and impounded. An impounded which shows transactions and on top of the paper ‘Received A/c’ and ‘Payment A/c’ is written in which the ‘Received A/c’ side property description “62/1 Ajmal Khan Park” was found mentioned. It was submitted that the above property description belongs to M/s Solitaire World Pvt, Ltd. which is a part of the SRM group of companies. The Assessing Officer held that the assessee failed to reconcile the amounts mentioned therein with its books of accounts.
The impounded material reflects receipts and payments and the assessee has already paid the difference of the amounts to taxation after going through the entire set of papers.
It was observed that there should be material on record to show that there was an undisclosed income on the basis of material on hand with the Assessing Officer and guesswork was not possible. Further viewed that the loose paper found on standalone could not be used as a basis for making the addition without any other supportive material and evidence.
The tribunal held that the revenue failed to bring anything on record to prove that the assessee was liable to pay the taxes more than what has been already disclosed and directed to delete the addition. The appeal filed by the assessee was allowed. The appellant was represented by Sh. Nirbhay Mehta & Sh. Hiren Mehta and the respondent were represented by Ms Yagya Saini Kakkar.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
