The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has deleted an income tax addition made against former Chief Minister of Karnataka for want of documentary evidence supporting the addition.
Last year, a five-day search operations conducted by the Income Tax department in Karnataka and three other states have resulted in the detection of a huge amount of undisclosed income. The raids were carried out in 47 locations, including at the house of a close aide of former Karnataka chief minister BS Yediyurappa.
According to the income tax department, search and seizure operations were carried out against three major Bangalore-based contractors engaged in the execution of irrigation and highway projects. Reportedly, the searches began on 7th October and were conducted by more than 300 officials.
The Tribunal bench comprising Shri Chandra Poojari, AM & Smt. Beena Pillai, JM pronounced the order on April 7th and has held that the payments are within the knowledge of the person, who written it.
Deleting the addition, the Tribunal added that “However, the said person denied the payment in the cross-examination and finally there is no evidence to suggest as to what they stand for and whom they referred to. Since the seized material is neither the regular books of account nor kept in the regular course of business of the assessee. They were not sufficient enough to fasten the liability on the present assessee, against whom they were sought to be used. The seized document collected by the department did not raise a reasonable ground to believe that there is a valid payment to the present assessee so as to award contract to the KNNL and the payment is relating to for awarding the contract of UBP. The seized material itself would not furnished evidences of the truth of their contents and that was not corroborated by any further evidence so as to hold that the assessee has actually received the said payment.”
Shri V. Srinivasan, Advocate appeared for the assessee.
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