Devaram Srinivasa Reddy Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that addition under section 69 of the Income Tax Act towards unexplained investment sustained since documents seized is incriminating in nature. Accordingly, appeal of assessee dismissed.
Facts- The assessee is an individual and proprietor of M/s. Srinivasa Infrastructures. A seizure and seizure operation was conducted in the case of M/s. RK Infracorp Private Limited and others on 06.02.2020 including M/s. Srinivasa Infrastructures and certain documents were found and seized. Based on the loose sheets, AO initiated the proceedings u/sec.153C of the Act and determined the total income of the assessee at Rs.37,56,070/- by making addition of Rs.25 lakhs [being 50% of assessee’s share] as unexplained investment u/s.69 of the Act as against the returned income of the assessee at Rs.12,56,070/- vide order dated 13.03.2024 passed u/s.153C of the Income Tax Act, 1961.
CIT(A) sustained the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that as per the sale agreement, the assessee has paid Rs.50 lakhs through cheque and an amount of Rs.50 lakhs on 27.01.2020 by way of cash for purchase of property. Therefore, the argument of the assessee that addition made by the Assessing Officer is not supported by any incriminating material found as a result of search and further, the material relied upon by the Assessing Officer is a ‘dumb document’ and cannot be treated as incriminating material is devoid of merit and thus, rejected.
