Sh. Purushttam Lal Soni Vs ACIT (ITAT Delhi)
153A Additions Upheld on Seized Electronic Data, But Income Restricted to 8% on Accommodation Entries
Delhi Bench of the ITAT partly allowed the Assessee’s appeals arising from search assessments u/s 153A r.w.s. 143(3). The Tribunal rejected the Assessee’s core jurisdictional challenge based on Kabul Chawla, holding that substantial incriminating electronic material in the form of seized hard disks and Tally data was found during search, attracting the presumption u/s 292C. The plea of inadmissibility of electronic evidence for want of Section 65B certificate was also negatived, reiterating that strict rules of the Evidence Act do not apply to income-tax proceedings and that seized digital data, duly cloned in presence of witnesses, was validly relied upon.
On merits, the ITAT upheld the principle of additions relating to unexplained cash payments, cash receipts, unsecured loans and commission, noting complete failure of the Assessee to rebut seized material or furnish cogent explanations. However, considering that the Assessee was essentially engaged in accommodation entry business, the Tribunal restricted the quantum of additions to a lump-sum rate of 8% on Section 68-type amounts, clarifying that such estimation shall not be treated as a precedent. The AO was further directed to grant telescoping benefit to avoid double taxation, while other additions under distinct heads were confirmed. Consequently, all seven appeals were partly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
