Case Law Details
Ajit Singh Melhotra Vs ACIT (ITAT Indore)
We find that the addition was made on the basis of admission of assessee’s son during the course of search. It was contended before us, that all these documents were properly recorded in the regular books of accounts of the persons to which these documents actually pertained. However, we find that the assessing officer did not establish the fact that any of the documents as found and seized was not recorded in the books of accounts of the persons to which these documents actually pertained. Therefore, we find force in the contention of the assessee that without referring to any of the documents was not binding on the assessee and the same cannot be used against the assessee as an evidence and that too in search assessment proceedings.
Income Tax Act, 1961, Section 132(4)
Search and seizure–Statement under section 132(4)–Evidentiary value
Conclusion: Where AO made addition merely on the basis of statement of assessee’s son under section 132(4), wherein some additional income on account of loose papers was accepted, however, the AO did not establish the fact that any of the documents as found and seized was not recorded in the books of account of the persons to which those documents actually pertained, therefore, without referring to any of the documents, the same could not be binding on the assessee and the same could not be used against the assessee as evidence and that too, in search assessment proceedings. Accordingly, the AO was rightly directed to delete the said addition.
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