The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) has held that no addition could be made under Section 153C of the Income Tax Act 1961 as the dumb documents found from the third party were not containing the assessee’s name.
Atul Kumar Gupta, there was search upon the assessee on 21/3/2017 and during the search conducted upon Atul Kumar Gupta cash, jewellery and some foreign currency was found. The AO treated payments made on account of credit card as income of the assessee u/s 153A assessment. During the course of the search of Agson group and Rajiv Gupta was seized, it contained a ledger account of Dildar (Atul sir) which contains payment received by the assessee during the year under consideration in cash.
The AO held that Rajiv Gupta and the assessee were common directors and therefore it could be said that this paper had been found during the search for the assessee. The AO has held that any paper found either in the hands of Rajiv Gupta or in the hands of the assessee was immaterial. Rejecting the arguments of the assessee the AO had treated the amount as income of the assessee.
Ajay Wadhwa on behalf of the assessee submitted that No material had been found from the assessee, and no addition under section 153A could be made. He also contended that the assessment had been done on the basis of dumb documents and these documents did not contain the name of the assessee but had only mentioned Dildar (Atul sir).
The Division Bench of Shamim Yahya, (Accountant Member) and Astha Chandra, (Judicial Member) allowed the appeal filed by the assessee observing that,
“In the present case, material found at the premises of Rajiv Gupta has been taken as if they are material found during a search at the assessee, Atul Kumar Gupta, which is not at all correct. the assessee’s plea that the assessee’s name is nowhere directly mentioned in these documents found at Rajiv Gupta place whereas it is mentioned as Dildar (Atul sir) which ipso facto cannot mean the assessee.”
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