Munesh Tyagi Vs DCIT (ITAT Delhi)
ITAT Delhi held that addition merely on the basis of entries found in the seized diary without any corroborative evidence and without any independent enquiry by AO is not sustainable. Accordingly, addition made by AO is deleted.
Facts- A search and seizure operation was carried out u/s. 132 of the Act on 03.11.2016 at the premises of the assessee connected to VVIP & SSG Group of cases. While framing the assessment, the AO inter-alia observed that during the search and seizure operation carried u/s. 132 of the Act, certain incriminating documents in the form of a small diary and other papers found and seized from the premises of the assessee.
The AO concluded that the assessee has made unexplained investment by way of purchase of plot for INR 30 Lakhs and also incurred expenditure of INR 18,04,200/- thereon resulting in overall investment of INR 48,04,200/-. The AO thus invoked the provision of s. 69 of the Act and made an addition of INR 48,04,200/- towards various entries purportedly recorded in relation to purchase of plot.
The AO also took cognizance of small diary on which certain date-wise hand-written entries towards payments made to different parties were found. The entries so found were aggregated and additions of INR 3,47,09,200/- were made u/s. 69C of the Act holding such entries to be unexplained payments.
