Pandoo P. Naig v. ACIT

INCOME TAX ACT, 1961

--Search and seizure--Presumption under section 292CLoose papers found from assessee's premises--No other corroborative evidence--Where assessee rebutted initial presumption under section 292C with regard to loose paper found in course of survey conducted at his premises and revenue did not bring any corroborative evidence on record to prove wrong, the assessee's contention, additions made solely on the basis of such uncorroborated loose papers were ordered to be deleted. --Assessee submitted that premises from which loose papers were recovered were not under his control as same were under occupation of 'S' which was proprietary concern of his relative and said concern was carrying on business as share sub broker and assessee was working as manager thereof. 'S' ceased to carry on business a few years back and there were several visitors in the premises and impugned papers might be left by any of such visitor. Neither there was any handwriting of the assessee or his employees as said loose papers nor they bore any signature of the assessee or any of his employees. Assessee had not carried out any transactions as mentioned in the paper and whatever the share transactions were done by the assessee were fully disclosed in his accounts and resulting capital gains were duly offered to tax. AO rejected it and made huge additions relying on provisions of section 292C. Held: Additions were solely made on the basis of initial presumptions under section 292C which stood rebutted by the assessee., There was no corroborative evidence available on record as found in course of survey which might prove wrong the contention of the assessee that said loose papers did not belong to him and assessee offered a plausible explanation regarding recovery of such documents in his premises. Uncorroborated loose papers found during survey could not be taken as a sole basis for determination of undisclosed income and additions made were, therefore, ordered to be deleted.