Additions Under Section 69C Cannot Be Based Solely on Seized Diary Entries Without Corroborative Evidence

The ITAT reversed additions made by the AO under Section 69C based on entries in a seized diary, finding that the assessee had discharged the primary onus by denying the contents, while Revenue failed to conduct independent inquiries or produce corroborative evidence. The Tribunal held that additions based solely on diary entries without supporting evidence would be contrary to judicial precedent, noting that the presumption under Sections 132(4A) and 292C is rebuttable. The ITAT applied the principle that the burden of proof lies on the person making allegations, and an assessee cannot be required to prove a negative. Similarly, unexplained investment allegations for plot purchase were rejected due to lack of documentary evidence. The assessee's appeals were allowed. .....

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