INCOME TAX ACT, 1961

Section 158BC read with section 132(4A)

Search and seizure - Presumption under section 132(4A) - Linkage of loose sheets found with assessee not established -

Pursuant to order passed under section 158BC read with section 263, AO had made addition towards undisclosed income. CIT(A) gave part relief to assessee, whereas Tribunal reversed finding of CIT(A). Assessee contended Tribunal did not record any finding as to how papers found during search corroborated with findings recorded by AO during search proceedings. Assessee further contended that on basis of presumption available to revenue under section 132(4A), Tribunal had reversed orders of CIT(A), who had given part relief to assessee. Held: Tribunal only on basis of presumption under section 132(4A), reversed finding of CIT(A), without recording any finding as to how loose sheets recovered during search, were linked with assessee. In absence of corroborative evidence, Tribunal was not justified in reversing finding by CIT(A). Thus, order of Tribunal reversing finding of CIT(A) in regard to deletion of addition and restoring order of AO on mere presumption was unsustainable. Accordingly, order of Tribunal was set aside to that extent and matter was remitted back to Tribunal to decide afresh.

REFERRED : CIT v. Shadiram, Ganga Prasad 2010 UPTC 840

FAVOUR : Partly in assessee's favour

A.Y. :

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