Case Law Details
Vipul Gupta Vs DCIT (ITAT Delhi)
The case of Vipul Gupta vs. DCIT (Income Tax Appellate Tribunal, Delhi) revolves around an appeal filed by the Assessee against an order passed by the Learned Commissioner of Income Tax (Appeals)-IV, Kanpur, concerning the assessment year 2012-13. The original assessment was conducted under section 143(3)/153C of the Income Tax Act, 1961, based on a search and seizure operation carried out at M/s. Shubhkamna Buildtech Pvt. Ltd.
During this operation, certain documents were seized, including Annexure LP-2, which contained an alleged agreement between Vipul Gupta and another individual regarding the sale of land. The assessing officer made additions to the Assessee’s income based on these documents, alleging unexplained investments. However, the Assessee contested these additions, arguing that the documents were not reliable evidence and lacked proper verification.
The Income Tax Appellate Tribunal (ITAT) considered the arguments presented by both parties. The Assessee’s representative highlighted a similar case, Sh. Rishi Aggarwal vs. DCIT, where additions were made based on similar loose papers seized during a search operation. In the Sh. Rishi Aggarwal case, the ITAT had ruled that such documents lacked evidentiary value as they were unsigned, undated, and not clearly related to the Assessee. The ITAT also emphasized the need for corroborative evidence and proper verification before making additions based on such documents.
In the present case, the ITAT noted that the loose papers relied upon by the assessing officer were not conclusively linked to the Assessee. The documents lacked essential details, such as dates, signatures, or clear context, making their validity questionable. Additionally, there was no effort made by the assessing officer to verify the transactions or summon the relevant parties for clarification. Therefore, the ITAT concluded that the additions made solely on the basis of these documents were not justified.
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