INCOME TAX ACT, 1961

Section 69B

Income from undisclosed sources - Validity of addition under section 69B - Alleged undisclosed investment in land - No statement of sellers along with witnesses recorded by revenue

Assessee was aggrieved by addition made under section 69B for undisclosed investment of Rs 25 lacs in land. Based on search action under section 132 and seized incriminating documents including a document in question pertaining to purchasing of three bigha land wherein assessee's son had signed document with one of sellers out of two sellers who owned land. It was alleged by revenue authority that on same document thumb impression of one of sellers and two witnesses were also there and assessee's son signed on behalf of assessee. Held: Case of revenue could not be believed because no statement of sellers were recorded by revenue department. If there was some doubt, revenue ought to have recorded statement of seller along with statement of witnesses. Department did not have any other evidence other than so-called banachhitti wherein assessee's son made an agreement to purchase land. On the basis of aforesaid so-called banachhitti, addition could not be made. Revenue ought to have collected more evidences and should have recorded statement of other concerned parties. Thus, in view of inadequate/insufficient evidence and enquiry addition was deleted.

Followed:Jawaharbhai Atmaram Hathiwala v. ITO (2010) 128 TTJ 36 (Ahmedabad) : 2010 TaxPub(DT) 1293 (Ahd-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2006-07

SUBSCRIBE FOR FULL CONTENT