Dheeraj Chaudhary Vs ACIT (ITAT Delhi)
Additions based on loose sheets deleted – “Dumb documents” without date/name cannot justify 153A additions – ITAT Delhi
In Shri Dheeraj Chaudhary vs ACIT (A.Y. 2015-16), additions exceeding ₹2.10 crore were made u/s 153A based mainly on loose sheets seized during search proceedings. The assessee argued that the documents were merely rough estimates relating to property dealings, contained no dates or signatures, and could not be linked to the relevant assessment year.
The ITAT observed that most seized papers lacked date, handwriting identification, or corroborative evidence and therefore qualified only as “dumb documents.” Relying on the Supreme Court ruling in Common Cause v. Union of India and principles under section 34 of the Evidence Act, the Tribunal held that loose sheets without independent corroboration cannot form the sole basis for addition. Where dates were present, they related to earlier years and not A.Y. 2015-16.
The Tribunal further deleted additions relating to loan from Muthoot Finance and ad-hoc house property income, noting lack of verification by lower authorities. However, it upheld validity of jurisdiction u/s 153A. Accordingly, major additions were deleted and the assessee’s appeal was partly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
