ACIT Vs Rutuja Projects (ITAT Hyderabad)
Revenue’s Appeal Dismissed Because No Evidence Proved On-Money Payment for Property Purchase; Section 69 Addition Set Aside Because Registered Sale Deeds Were Not Disproved by Independent Evidence; Unexplained Investment Addition Deleted Because Same Seized Document Was Already Held to Be a Dumb Document; ITAT Upholds Deletion of On-Money Addition Because Revenue Produced No Independent Material; Property Purchase Addition Deleted Because Seized Paper Could Not Override Registered Documents; ITAT Affirms Relief Because Alleged On-Money Was Based Only on Unsubstantiated Search Material.
The Revenue filed an appeal against the order of the Commissioner of Income Tax (Appeals) deleting an addition of ₹1,05,96,934 made under Section 69 as unexplained investment. The assessee firm also filed a cross-objection supporting the order of the Commissioner (Appeals). The dispute arose from assessment proceedings initiated under Section 153C based on a seized loose sheet recovered during a search conducted in the case of another person.
Background of the Case
The assessee firm, engaged in the business of construction and development of residential flats, filed its return of income for Assessment Year 2019-20 declaring income of ₹1,000. A search under Section 132 was conducted in the case of Dr. Amidyala Lingaiah, following a search on the Yashoda Group. During that search, Page-24 of Annexure A/LA/RES/01, a loose sheet, was seized. The Assessing Officer of the searched person concluded that the document pertained to the assessee firm and forwarded it to the Assessing Officer having jurisdiction over the assessee. Proceedings under Section 153C were thereafter initiated.
