Unsubstantiated and uncorroborated seized material alone cannot ...

Uncorroborated seized material alone can't justify additions; presumptions rebuttable. Assessments need adequate evidence, not mere suspicion.

November 29, 2024

Case Laws     Income Tax     AT

Unsubstantiated and uncorroborated seized material alone cannot be considered conclusive evidence for additions u/s 69B. The words "may be presumed" in Section 132(4) provide an option to the Assessing Officer to presume, but it is rebuttable, and the assessee has the right to rebut. Additions cannot be made based on suspicion, conjectures, and surmises. The Assessing Officer must act judicially, fairly, and reasonably, and assessments u/s 153C should be supported by adequate material. Loose sheets, scribblings, and jottings without signatures or authorization from the assessee are unsubstantiated documents and cannot sustain additions. Non-speaking documents without corroborative material and evidence of undisclosed assets or income should be disregarded. Additions based solely on statements recorded u/s 132(4) are inadmissible, as voluntary admissions are not conclusive proof and can be explained or shown to be wrong. The burden lies on the assessee to prove the admission incorrect. Sworn statements cannot be relied upon without corroboration for making assessments. Additions based on agreements or transactions where the assessee is not a party or without examining the concerned parties are untenable. Income from transactions cannot be taxed in the hands of an individual if it pertains to a firm or separate.

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