Ramesh Rajpal Vs DCIT (ITAT Delhi)
ITAT Deletes LTCG Addition Because Seized Diary Was Held Unreliable in Related Cases; ITAT Allows Appeal After Finding No Fresh Inquiry Conducted Following High Court Remand; ITAT Rejects Addition on Alleged Asola Land Sale Due to Lack of Evidentiary Support; Addition Based on Third-Party Seized Material Set Aside Following Final Relief to Co-Seller.
The appeal concerned an addition of Rs. 39,32,850 made to the income of Ramesh Rajpal (HUF) for Assessment Year 1994-95 on account of alleged long-term capital gains arising from the sale of land at Village Asola. The assessee had originally filed its return declaring income of Rs. 4,21,840. The addition was based entirely on entries contained in a diary seized during search and seizure operations conducted at the premises of Surender Modi, Lalit Modi and others. According to the Revenue, the diary reflected that land owned by the assessee and other co-owners had been sold for a consideration linked to the purchase of a farmhouse by Smt. Manju Rajpal.
The original assessment order dated 28.03.1997 computed the assessee’s share of the alleged sale consideration at Rs. 41,52,450 and made an addition of Rs. 39,32,850 as long-term capital gain. Similar additions were also made in the cases of co-sellers, including Smt. Manju Rajpal and Shri Ramesh Rajpal.
