Diary Seized During Search Leads to ₹42.98 Lakh Addition; Tribunal Bars 60% Tax Rate

Kailash Gahlot Vs DCIT (ITAT Delhi)

Delhi Tribunal upheld the addition of ₹42.98 lakh as unexplained expenditure u/s 69C, arising from a diary seized during search showing election-related expenses, but granted partial relief by holding that the 60% tax rate u/s 115BBE was inapplicable for AY 2015-16.

The diary seized from Gahlot’s office contained entries referring to “KG Sir,” his relatives, phone number & website, proving nexus to him. Tribunal held that the presumption u/s 292C applied and that the affidavit of the diary’s

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