INCOME TAX ACT, 1961

Section 143(3) Section 147 Section 132

Assessment - Additions to income - Entry found in loose papers during search and seizure carried out in case of third party -

A search and seizure operation was carried out in the companies of 'S' group and in one of companies assessee's name was found on the loose papers seized from that company disclosing certain advancement of loan by allegedly assessee along with interest. AO made addition in hands of assessee on that basis. Both the lower appellate authorities dismissed revenue appeal and deleted the said addition in assessee's hands.Held:Apex Court had taken into account in similar circumstances the incriminating materials in form of random sheets, loose papers, computer prints, hard disk and pen-drive, etc., and had held that they were inadmissible in evidence, as they were in the form of loose papers. In the present case also entries were found during search and seizure which were on loose papers were being made the basis to add income of assessee. Resultantly, in light of the Supreme Court judgment, no case for interference was, therefore, made out with the order passed by the Tribunal.

Followed:Common Cause (A Registered Society) v. UOI (2017) 77 Taxmann.com 245 (SC) : 2017 TaxPub(DT) 0209 (SC) 22, 24 and 27.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

SUBSCRIBE FOR FULL CONTENT