| The Tax Publishers2019 TaxPub(DT) 8342 (All-Trib) INCOME TAX ACT, 1961
Section 69
Merely relying on the receipt, which was seized from a third party, and despite the unrebutted fact that the said receipt had been cancelled by Company, as affirmed by Director, it could not be concluded that assessee had made payment for booking of the flat, therefore, addition so made by AO could not be sustained.
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Income from undisclosed source - Addition under section 69 - Based on a single loose sheet found from third party -
Proceedings under section 153C were initiated and reason for initiating proceedings under section 153C was that upon search & seizure operation under section 132 conducted at the residential & business premises of Mr. H, a third party, a loose paper was found and seized, which was a receipt in the name of assessee, for a sum of Rs. 10 Lakh for booking a flat. AO asked assessee to explain the source of such receipts, in response to which assessee stated that the alleged was not paid by assessee to Company. However, AO did not accept the explanation so furnished by assessee and made addition under section 69. Held: No corroborative evidence was brought on record by Department to indicate that assessee had made cash payment of Rs. 10 lakhs for booking of the flat. Merely relying on receipt, which was seized from a third party, and despite the unrebutted fact that the said receipt had been cancelled by Company, as affirmed by Director, it could not be concluded that assessee had made payment for booking of the flat. Therefore, addition so made by AO was purely on guesswork and conjectures and surmises, could not be sustained.
REFERRED : ACIT v. Katrina Rosemary Turcotte ITA Nos. 3092 to 3097/Mum/2015] : 2017 TaxPub(DT) 4759 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. : 2013-14
IN THE ITAT, ALLAHABAD BENCH
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