2013 (12) TMI 197 - HC - Income Tax

Lack of proper investigation - Held that - The A.O. didnot examine the person who made the unsigned agreement - The Assessing Officer did not make addition of the amount mentioned in the draft agreement to sell but addition of Rs.1.15 crores was made - The draft agreement to sell could have been the starting point of investigation and further detailed verification was not been carried out - In the absence of the said investigation and evidence - Decided against Revenue.

Summary

The Delhi High Court dismissed the appeal in a case where the Assessing Officer relied on an unsigned agreement found during a survey. The tribunal found the draft agreement was not executed and implemented, with separate transactions involved. The Assessing Officer did not thoroughly investigate the matter, leading to the dismissal of the appeal.