DCIT Vs Metrocity Home (ITAT Nagpur)
ITAT Nagpur held that addition merely on the basis of dumb documents, loose paper containing scribbling, rough/vague notings without any corroborative material, evidence on record and finding that such dumb documents had materialized into transactions giving rise to income is not sustainable in law. Accordingly, appeal of revenue dismissed.
Facts- The assessee is a Partnership Firm. A search and seizure action u/s. 132 of the Income Tax Act, 1961 was conducted on 25/06/2019, in the case of Shri Prashant Bongirwar. During the course of search and seizure operation, several incriminating documents related to the assessee were found and seized from the residential premises of Shri Prashant Bongirwar. AO completed assessment by making various addition under section 69A and 69C towards unexplained money and unexplained expenditure.
CIT(A) granted full relief to the assessee. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that addition to the income cannot be made by the Assessing Officer based on the dumb documents, loose paper containing scribbling, rough/vague notings in the absence of any corroborative material, evidence on record and finding that such dumb documents had materialized into transactions giving rise to income of the assessee which had not been disclosed in the regular books of account by the assessee.
