Ankush Kumar Jain Vs ITO (ITAT Jaipur)
Statement Alone Cannot Tax ₹9.70 Crore: ITAT Jaipur Deletes Protective Addition for Lack of Corroborative Evidence
Jaipur Bench of the ITAT dealt with a case where AO made a protective addition of ₹9.70 crore on the allegation that Assessee had paid this amount in cash to one Shri Mohit Garg for purchase of gold. The foundation of the addition was only the statement of Mohit Garg recorded u/s 132(4) during search, in which he stated that he received the money from “Ankush Kumar Jain” & also mentioned a PAN number that matched the assessee’s PAN.
On receiving notice u/s 148, Assessee consistently denied any such transaction & claimed mistaken identity. He furnished his voter ID, bank details & bank statements to demonstrate that he never had the financial capacity nor any dealings of this nature. He did not deny that the PAN belonged to him, but asserted that PAN alone cannot prove involvement in a massive cash transaction. The Assessing Officer, however, completed assessment u/s 144, holding that substantive addition had already been made in the case of Mohit Garg, & to protect the interest of revenue, made a protective addition u/s 69 in assessee’s hands.
