DCIT Vs Yashwant Ajabrao Khodke (ITAT Nagpur)
ITAT Nagpur held that addition under section 69C towards unexplained expenditure is liable to be deleted due to lack of corroborative and strong evidence. Accordingly, appeal of the department dismissed.
Facts- Post search operation and based on loose paper, addition of Rs. 2,17,00,000/- was done towards unexplained expenditure under section 69C of the Income Tax Act. CIT(A) deleted the addition. Being aggrieved, revenue has preferred the present appeal.
Conclusion- The Assessing Officer held that the submission of the assessee that the original receipt remains always in the possession of the person who makes the payment and not in possession of the person who receives the payment and thus the assessee never paid the amount was not acceptable as these transactions are out of books and generally once the sale deed is registered, these types of documents are returned back to the person who has signed it. We decline to accept the observation made by the Assessing Officer in this regard. There is no reason provided by the Assessing Officer behind returning back of the documentary evidences which could establish payment of a sum as huge as Rs. 25,00,000. The addition cannot be made on the whims and fancies without bringing corroborative documentary evidences on the record.
