Case Law Details
UNSIGNED AND UNDATED PAPER FOUND DURING THE SEARCH WITH NO CORROBORATIVE EVIDENCE. NOT RECORDING OF THE SATISFACTION BY AO: WHETHER ADDITIONS TO THE INCOME CAN BE MADE?
Recently, in Samta Khinda vs. ACIT [I.T.A. Nos. 336/DEL/2012 and 5515/DEL/2013, decided on 29/11/2016], some of the grounds raised were that the CIT (A) had grossly erred in law and on the facts of the case in confirming the addition of Rs. 96 lacs in the hands of the assessee as unaccounted income from undisclosed sources in terms of Sec 69/698/69C of the Income Tax Act, 1961(herein referred to as ‘the Act’) where there was no corroborating evidence of the figure of Rs 96 lacs mentioned on the loose paper and in applying Section 292C of the Act merely because some papers were found from the premises of the assessee while ignoring vital facts and contentions of the assessee and in confirming the addition of Rs 5.67 lacs in the hands of the assessee as unexplained jewellery under section 69B of the Act.
The assessee/appellant against the order of the AO dated 31.12.2010, filed an appeal before the CIT(A), who vide order dated 28.11.2011 had partly allowed the appeal and confirmed the addition of Rs.96 lacs on account of unaccounted income from undisclosed sources in terms of Section 69/69B/69C of the Act and Rs. 5.67 lacs as unexplained jewellery under section 69B of the Act.
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Very nice decision, each A.O. requires to learn while dealing with impounded or seized or incriminating document in any action under Income Tax Act and Rules.