Shyam Sunder Bang Vs ACIT (ITAT Delhi)
ITAT Delhi held that loose papers cannot be considered as admissible evidence for making an addition unless backed by independent corroborative material. Accordingly, addition made under section 69B of the Income Tax Act liable to be deleted.
Facts- During the search and seizure operation of Navneet Dawar & others Group and Sh. Gurvinder Singh Duggal., certain documents papers ‘belonging to the Assessee’ was found and seized/impounded from the said premises.
Accordingly, a proceedings u/s 153C of the Act was initiated and based on the document found from the premises of Gurvinder Singh Duggal, an addition has been made in the hands of the Assessee u/s 69B of the Act on account of unexplained investment to the tune of Rs. 30,00,000/-. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Co-ordinate Bench of the Tribunal in the case of ACIT Vs. Lata Mangeshkar 97 ITD 53 held that unsigned, unverified papers cannot form the basis for addition u/s 69B of the Act. Further, the Hon’ble Supreme Court in the case of Common Cause Vs. Union of India (2017) 394 ITR 220(S.C) also held that loose papers cannot be considered as admissible evidence for making an addition unless backed by independent corroborative material.
