Suresh Kumar Banthia Vs DCIT (ITAT Kolkata)
Loose Sheets Are Dumb Documents – Suspicion & Dumb Documents Cannot Replace Evidence- ITAT Kolkata Deletes Rs. 11.35 Cr Addition; Retracted Survey Statement Cannot Justify 69A Addition
Assessee, a key person in the Citizen Group, was subjected to survey u/s 133A on 19.02.2020. AO relied on documents seized during search on finance brokers ‘Kasera’ & ‘Sanwaria’ in November 2018, as well as on nothings impounded during survey, to conclude that Assessee advanced large cash loans outside the books. Based on alleged admissions in survey statement, later retracted, AO added Rs. 7.47 crore u/s 69A, which was further enhanced by CIT(A) to Rs. 11.35 crore by treating the peak figure as unexplained money.
Before the Tribunal, Assessee argued that (i) the search on brokers was conducted on 30.11.2018, i.e., before start of FY 2019-20 relevant to AY 2020-21, hence seized materials could not be linked to the year under appeal; (ii) his survey statement admitting cash loans was retracted within five days citing coercion, & no corroborative material was found; (iii) no receipts, vouchers, or borrower confirmations were seized; & (iv) jottings in loose sheets were “dumb documents” without evidentiary value. It was also emphasized that key persons allegedly involved, such as Gajraj Choraria & Pawan Mundhhra, were never examined by AO despite their details being available.
