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2020 (2) TMI 845 - HC - Income TaxAdditions made on the basis of loose papers found and impounded from the premises of the assessee - Presumption u/s 292C - CIT(A) applying the telescoping reduced the addition giving partial relief to the assessee - ITAT confirmed the order of CIT(A) - HELD THAT - There is nothing on record to come to the conclusion that the Tribunal has ignored the material which is required to be considered or has taken into consideration the material which is not relevant. Moreover, it is not the case of the Revenue that the Tribunal has arrived at the aforesaid finding of fact without any evidence. Therefore, the application of Section 100 of the Indian Evidence Act cannot be said to be ignored by the Tribunal, as canvassed by the Revenue. In the facts of the case, the Tribunal has considered in detail in respect of each of the additions deleted by the CIT(A) and after analysing the material, the Tribunal has confirmed the order passed by the CIT(A). As such there are concurrent finding of fact as stated hereinabove, it cannot be said that the order of the Tribunal is perverse in upholding the order passed by the CIT(A) deleting the additions made by the Assessing Officer on the basis of loose papers found and impounded from the premises of the assessee. The Tribunal has also upheld the inference drawn by the CIT(A) under Section 292C of the Act, 1961 so as to sustain the additions made by the CIT(A). Tribunal has given cogent reasons and arrived at conclusion on the basis of the materials and the fact found on record, which cannot be interfered in absence of any material on record to show the contrary fact on record. - Decided against Revenue.
Issues Involved:
1. Application of Section 292C of the Income Tax Act, 1961. 2. Addition on account of unaccounted loans, advances, and interest. 3. Addition on account of unaccounted income. 4. Addition on account of unaccounted on-money receipts. 5. Addition on account of unexplained expenditure under Section 69C. 6. Application of Section 110 of the Indian Evidence Act. Detailed Analysis: Issue 1: Application of Section 292C of the Income Tax Act, 1961 The Tribunal upheld the application of Section 292C, which presumes that documents found during a survey belong to the assessee and their contents are true unless proven otherwise. The Tribunal referenced the case of Asstt. CIT v. Vatika Greenfield (P) Ltd. and Hiren Vasantlal Shah to support this presumption. The Tribunal confirmed the addition of ?4,72,000 based on impounded documents indicating loans and interest, applying the principle of telescoping to reduce the addition by ?4 lakhs. Issue 2: Addition on Account of Unaccounted Loans, Advances, and Interest The Tribunal dismissed the Revenue's appeal, noting that the impounded sheet contained names of probable lenders with blank interest columns. Six individuals listed denied financial transactions with the assessee. The AO failed to provide contrary evidence, leading the Tribunal to uphold the CIT(A)'s deletion of the ?4,82,56,000 addition. Issue 3: Addition on Account of Unaccounted Income Sub-issue (a): ?1,50,00,000 Addition The Tribunal found that cheques listed in the impounded documents were not linked to the assessee's bank accounts. The AO's remand report confirmed this, leading to the deletion of the ?1,50,00,000 addition. Sub-issue (b): ?12,63,96,132 and ?40,27,600 Additions The Tribunal noted that inquiries during remand proceedings revealed no connection between the assessee and the transactions listed in the impounded documents. The Tribunal upheld the CIT(A)'s deletion of these additions due to lack of corroborating evidence. Sub-issue (c): ?34,82,000, ?1,42,60,000, and ?5,43,49,000 Additions The Tribunal upheld the CIT(A)'s partial allowance, restricting the addition to ?1,34,86,000. The CIT(A) decoded entries in the impounded documents, confirming the assessee received ?74,66,000 as advances for plot sales and paid ?60,20,000 as interest. The Tribunal found no infirmity in the CIT(A)'s order, dismissing the Revenue's appeal. Issue 4: Addition on Account of Unaccounted On-Money Receipts The Tribunal upheld the CIT(A)'s deletion of the ?40,27,600 addition. During remand proceedings, it was confirmed that the assessee had no financial dealings with Sarjan Co-operative Society, mentioned in the impounded documents. Issue 5: Addition on Account of Unexplained Expenditure under Section 69C The Tribunal upheld the deletion of the ?97,24,958 addition. It was established that the assessee acted as a Panch in resolving a dispute and retained a copy of the decision, with no financial dealings involved. Issue 6: Application of Section 110 of the Indian Evidence Act The Tribunal found no merit in the Revenue's argument regarding the application of Section 110, which pertains to the burden of proof of ownership. The Tribunal confirmed that the CIT(A) and AO had appropriately applied Section 292C of the Income Tax Act. Conclusion: The Tribunal's findings were based on detailed analysis and evidence, upholding the CIT(A)'s decisions and dismissing the Revenue's appeals. The High Court found no substantial questions of law warranting interference, leading to the dismissal of both appeals.
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