DCIT Vs Indian Hydro Electric Power Pvt. Ltd. (ITAT Delhi)
No Incriminating Evidence, Only Excel — ITAT Deletes ₹25 Cr Addition in Moser Baer Group Case
Search was conducted on the Moser Baer Group, covering Assessee’s premises. During search, an Excel sheet titled “Funds Position” was found on a group employee’s laptop, showing loan entries. Based solely on this & statements of Rajiv Agarwal & Neeraj Jain (both later retracted), AO treated ₹ 25.05 crore as unexplained loans u/s 68 & ₹ 25.05 lakh as commission u/s 69C.
CIT(A) deleted the additions holding there was no incriminating material & that the alleged statements were retracted, uncorroborated, & obtained under coercion. Assessee had furnished full evidence—PAN, ITRs, audited accounts, bank statements, confirmations, & proof of repayments—proving identity, creditworthiness, & genuineness of lenders.
Tribunal upheld CIT(A), noting that:
- The Excel sheet, found from a third-party laptop, only reflected book entries & was not incriminating.
- Retracted statements without corroboration have no evidentiary value.
- AO denied cross-examination, violating natural justice.
Following Abhisar Buildwell (SC) & Kabul Chawla (Del HC), additions u/s 153A must rest on search-based incriminating material, which was absent.
Held: Additions based solely on retracted third-party statements & unverified Excel data are invalid; deletion of ₹ 25.30 crore sustained.
