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| The Tax Publishers2021 TaxPub(DT) 1369 (Del-Trib) INCOME TAX ACT, 1961
Section 132
Loose sheets were not recovered from possession of assessee during search at any point of time. Thus, presumption under section 132(4A) and section 292C no statement was recorded under section 132(4). Later on, AO recorded the statement under section 131 which was the sole basis of making estimated additions against assessee, but, statements, were not corroborated by any evidence or material on record and in the absence of any corroborative evidence, addition could not be upheld.
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Search and seizure - Addition to income - AO relied on statement recorded under section 131 - No corroborative material
AO based on statement of assessee and assessee's employee recorded under section 131 subsequent to search at assessee's premises, and loose slips were also found from possession of employee. Concluded that assessee had received commission on the contract awarded to different contractors and estimated commission income earned by assessee and thus made addition. Assessee challenged this for want of corroborative material. Held: Loose sheets were not recovered from possession of assessee during search at any point of time. Thus, presumption under section 132(4A) and section 292C was not sustainable under law against the assessee. No statement was recorded under section 132(4). Later on AO recorded the statement under section 131 which was the sole basis of making estimated additions against assessee, but, statements, were not corroborated by any evidence or material on record and in the absence of any corroborative evidence, addition could not be upheld.
Relied:Kishanchand Chellaram v. CIT (1980) 125 ITR 713 (SC) : 1980 TaxPub(DT) 1130 (SC) and Andaman Timber Industries (2015) 281 CTR 214 (SC) : 2015 TaxPub(DT) 5186 (SC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10 to 2015-16
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