2023 (7) TMI 906 - HC - Income Tax

Unaccounted land transactions - Treating incriminating documents in the form of duly written and signed Sauda Chithhi found and seized during the search action taken u/s 132 carried out by the department as dumb documents - HELD THAT - It is pertinent to note at this stage that this Court in Tax Appeal 2021 (7) TMI 747 - GUJARAT HIGH COURT and after considering various decisions rendered by the Hon ble Supreme Court, this Court has discussed what is the meaning of substantial questions of law. We have gone through the observations made by the Tribunal while passing impugned common order. We have also considered the submissions canvassed by learned Standing Counsel for the revenue. If the facts of the present case are examined on touch stone of the decisions rendered by the Hon ble Supreme Court as observed hereinabove, we are of the opinion that the present appeals do not involve any substantial question of law.

Summary

Issues Involved:
1. Deletion of addition based on incriminating documents.
2. Treatment of "Sauda Chithi" as dumb documents.
3. Valuation Report of DVO.
4. Explanation of "Sauda Chithi" by the assessee.
5. Retraction of statement.
6. Opportunity for cross-examination.

Summary of Judgment:

1. Deletion of Addition Based on Incriminating Documents:
The Tribunal deleted the addition of Rs.13,86,85,279/- made by the Assessing Officer, which was based on incriminating documents showing unaccounted land transactions found and seized during search proceedings. The Tribunal's decision was contested by the revenue, arguing that the documents carried solid evidentiary value.

2. Treatment of "Sauda Chithi" as Dumb Documents:
The Tribunal treated the incriminating documents, specifically the "Sauda Chithi," found and seized during the search action under Section 132 of the IT Act as dumb documents. The revenue contended that the documents had complete evidentiary value, and the person from whom they were seized admitted their possession and explained their contents as pertaining to unaccounted transactions.

3. Valuation Report of DVO:
The Tribunal did not properly appreciate the fact that the Valuation Report of the DVO was a mere estimate based on sale instances of the locality as per their Jantri Value. The revenue argued that the Tribunal failed to consider the incriminating and corroborative evidence found and seized during the search proceedings and the overall development of the area.

4. Explanation of "Sauda Chithi" by the Assessee:
The Tribunal did not appreciate that the assessee failed to bring on record any cogent explanation regarding the "Sauda Chithi" not being a live evidence. The revenue emphasized that the admission of Shri Manoj C. Patel regarding the entirety of the transaction and involvement of 'on money' in the land transaction should be given full credence.

5. Retraction of Statement:
The Tribunal did not consider that the subsequent retraction of the statement was for the convenience of the parties involved in the land transaction. The revenue argued that this retraction should not guide the appellate authority to ignore the clinching evidence brought on record.

6. Opportunity for Cross-Examination:
The Tribunal emphasized that an opportunity for cross-examination was not granted to the assessee. The revenue countered that ample opportunity was provided by the Investigating Officer and the Assessing Officer, which the assessee chose not to avail. The demand for cross-examination was argued to be self-serving and should have been rejected.

Conclusion:
The High Court, after considering various decisions rendered by the Hon'ble Supreme Court on the meaning of substantial questions of law, concluded that the present appeals do not involve any substantial question of law. Therefore, all the appeals were dismissed.