No addition on the basis of loose papers in absence of corroborative material

Narsinga RAO Vs ACIT (Telangana High Court) Conclusion: Revenue had placed no material on record to show that the loose papers were in the hand-writing of assessee and there was no corroborative material on record to prove that the expenditure recorded in the said loose papers was incurred by assessee. Therefore, no addition could be made on account of undisclosed expenses. Held: Appellant was engaged in distribution of ‘Four Square’ cigarettes in Hyderabad city. During the course of search, certain incriminating material in the form of loose papers/slips was found and seized, which indica...