The Surat bench of Income Tax Appellate Tribunal (ITAT) has recently held that no addition could be made in respect of un-signed, unstamped, Satakhat, and it was found from the CD of the computer of a person who was not connected with the assessee.”
The fact of the case was when the assessing officer conducted survey under section 133 of the Income tax act 1961 in the office premises of Turmish B. Kania, Advocate and Meera T. Kania, at A Sai Leela Associates, found certain documents of incriminating nature were recovered from the office along with some hard disc of computers.it was also noticed that satakhats/sale deeds print results and purchase /sale deeds.The satakhats is in the name of the assesee Kal Pesh Mafatlal Patel.
After the incident the assessing officer reopen the assessment procedure of assessee under section 148 of the Income Tax Act, 1961 and After examining the details filed and test checking the details with return income and document furnished, the income returned by the assessee was examined by Assessing Officer and found the satakhats was made by the assessee but the amount of satakhats did not add the book of account of the assessee and make additional amount to assess.against the order assess filed appeal before ITAT.
Urvashi Shodhan, the counsel for the assessee contended that Satakhat is of land at Bamroli Block 45 admeasuring 1 1027 sq. mtr also Kalpesh Mafatlal Patel & Yogesh Mohanlal Patel are purchasers and Chetanbhai Channabhai and Others are sellers therefore in satakhat deed, not mentioned the name of assessee in sale deed as confirming party.
Vinod Kumar,counsel for revenue submitted that “survey was conducted on the premises of the assessee and from whom the incriminating documents were found relating to the assessee.”
After considering the contentions of the both parties the division bench of ITAT comprising Pawan Singh, (Judicial Member) and Dr. A. L. Saini, (Accountant Member) allow the appeal filed by the assessee and observed that “documents, which was found in the possession of other person, did not bear the name of the assessee, that is, the name of the assessee is not mentioned in the statement of another person. Therefore no addition could be made in respect of un-signed, unstamped, Satakhat, which has not been registered and is found from the CD of the computer of a person who is not connected with the assessee.”
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