Documents found in possession of any person during search is presumed belonging to such person

Trishul Buildtech Infrastructure (P) Ltd. Vs JCIT (ITAT Bangalore)

ITAT Bangalore held that u/s. 292C of the Income Tax Act, there is a presumption that the documents found in the possession or control of any person in the course of search, belongs to such person and contents of such document are true.

Facts-

The assessee is a partnership firm. There was a search and seizure operation carried out u/s. 132 of the Income-tax Act, 1961 in the case of the assessee. The AO issued a show cause notice asking the assessee to explain the entries in the seized material. The assessee filed a reply disowning knowledge of the seized material. Apart from disowning the entries in the seized diaries, the assessee also submitted that the entries are mere scribblings and they do not result in any income. The assessee also pleaded that the persons who wrote the diary should alone explain the entries. AO rejected the reply and brought undisclosed income to tax.

Conclusion-

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