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TMI Blog2023 (12) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee nor to Sh. Buti Singh (seller) which demonstrates that neither the assessee nor the seller was the author of the document. The loose paper did not belong to the assessee or to the seller, there is no description or comment explaining the hand written jottings-whether it represented a proposal for purchase or construction by the builder or payment between assessee and right seller, there is no date of receipt or payment mentioned against any figure, the content of the paper was incorrect as the total sales consideration did not match to the sales consideration as per the agreement. Further, the sales consideration as per the loose paper did not even match to the handwritten jottings which raise serious doubts on its validity and accuracy. Thus, the above said loose paper was not speaking document and it is a dumb document which can be used as a basis for making the addition u/s 69 of the Act in the absence of any substantive enquiry to validate the content of the paper with any supportive and corroborative material and evidence. The evidentiary value of loose paper which is unsigned, undated and unverified has been held to be highly questionable and has not been accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition of Rs.24,04,399/-. The information received from Audit party does not warrant rectification, but only a fresh assessment proceeding can be initiated, if required. The scope of rectification proceedings are limited to correction of mistakes apparent from records only. 4. That the addition of Rs.76,75,000/- is based on the basis of seized material found during the course of search proceedings in another case, to which the appellant is in no way connected. All the transactions with the said party are fully disclosed and recorded in the books of accounts of the appellant. 5. That both the assessment and appellate proceedings have been disposed off in a summary manner, without any discussion and assigning any reason which formed the basis of such addition. 6. That detailed statement of facts shall be furnished at the time of hearing of the appeal." 2. The brief facts of the case are that a search and seizure operation u/s 132 of the Income Tax Act, 1961 ('Act' for short) was conducted on 09/10/2013 on the premises of the assessee comprising Shubhkamna Buildteck Pvt. Ltd group of cases wherein certain incriminating documents were found & seized relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is recorded stands incorrect. Satisfaction recorded by the Assessing Officer is reproduced here-in-under: • Satisfaction Note for initiation of proceedings u/s 153C of I.T. Act-Rishi Agarwal-PAN:ACKPA4796P • During the course of search and seizure operation in the case of M/s. Subhkamana Buildtech Pvt. Ltd. at 102 Star House, Sector-4, Noida. Incriminating documents were found and seized. On pages 37 to 49 of Annexure LP-2 there is an agreement between Shri Rishi Agarwal, S/o Shri Rajendra Agarwal R/o C-64, Sector-47, Noida and Shri Buti S/o Shri ....R/o Village Momna Thal Pargana Dankaur Tehsil and District Gautam Budh Nagar on 01.03.2012. The agreement pertains to sale of land area of 343 sq. meters and the total consideration mentioned in the agreement is Rs.30,87,000/-. Shri Rishi Agarwal made the payment of advance of Rs.27,80,000/- through cheque no.148488 on 20.03.2012. Further on page 36 of Annexure LP-2 paper/document was seized as per which Shri Rishi Agarwal made cash payment of Rs.76,75,000/- for purchase of the said land. These seized documents pertain to Shri Rishi Agarwal and the information contained therein....Shri Rishi Agarwal. • The cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which are (i) a copy of the agreement between Late Sh. Buti Singh and the assessee for transfer of right on future plot of land of 343 sq. meter to be allotted by NOIDA authority for Rs.30,87,000/- to the assessee. In the said agreement the assessee is stated to have paid a cheque of Rs.27.80 lakhs (ii) an unsigned and undated loose paper/ a computer generated sheet which contained a list of different properties with the name of farmer (owner) and the purchaser. As per AO one of the entries pertaining to the copy of the agreement is between late Buti Singh and the assessee for transfer of rights on future allotment of 343 sq. mtr. but with distorted sales consideration. In the computer-generated sheet, the total sale consideration was stated to be Rs.10,29,000/-, whereas as per agreement the total sale consideration was Rs.30,87,000/-. Further, certain handwritten jottings were made on the margins of the paper "Ch.27.80 and cash 76.75(74.15 +2.60)". The loose paper found during search which is reproduced as under: 13. It can be seen from the above paper found during the search placed at page 30 of the Paper Book that: It is neither dated nor signed/stamped, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company of other material found on investigation and/or in the search. The document should be clear and unambiguous in respect of all four components of charge of tax. If it is not so, the document is only a dumb document and no charge of tax can be levied on the assessee on the basis of a dumb document." Further it has been held that in absence of any supportive and corroborative material and evidence, a loose paper found during search containing rough notings of proposals/offers could not be a basis for making addition u/s 69 of the Act. 16. It is further observed that the Ld. AO did not consider the need to summon the seller or the person searched, or to record the statement of the author/searched person/seller by giving an opportunity to assessee to cross examine the said person. The AO has not even made any enquiry about the value of the property purchased by the assessee. Considering the above facts and circumstances, we find merit in the Ground Nos. 2, 5 to 10 and, accordingly, we delete the addition of Rs.76,75,000/- made u/s 69 of the Act. 17. Ground No.3 is regarding by addition by Rs.24,04,394/- on account of audit objection and passing the order u/s 154 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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