Law:

Section:

[2008] 307 ITR 137 (GUJ.) HIGH COURT OF GUJARAT Commissioner of Income-tax v. Maulikkumar K. Shah Y.R. MEENA, CJ. AND AKIL KURESHI, J. Tax Appeals Nos. 1938-40 of 2006 JULY 20, 2007. Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income Mere entries in seized material are not sufficient to prove that assessee has indulged in such a transaction in which 'on money' has been received. [Assessment Year 1995-96] (In the favour of assessee) CIT v Mauli Kumar K. Shah [2008] 307 ITR 137 (Guj.) The assessee had constructed certain shops. There was a search at the assessee's premises and a diary was seized in which the assessee had estimated rates of these shops. The assessee had booked/sold 35 shops as on date of search. Because of the difference in rates as mentioned in the seized paper and the books of account, the Assessing Officer calculated the 'on-money' and made addition accordingly. Held that notings in the seized diary found from the premises were the only material on the basis of which the Assessing Officer had made the impugned additions. The Assessing Officer had not brought any corroborative material on record to prove that such sales were made and 'on-money' was received by the assessee outside the books of account. The Assessing Officer had not examined any purchaser to whom the sales of shops were effected. Onus heavily lay on the revenue to prove with corroborative evidence that the entries in the seized diary actually represented the sales made by the assessee. Such onus had not been discharged by the revenue. Mere entries in the seized material were not sufficient to prove that the assessee had indulged in such a transaction. The inference of the Assessing Officer that the assessee has received 'on-money', was merely based on suspicion and surmises and there was no material whatsoever to support the conclusion of the Assessing Officer that the assessee had in fact received any 'on-money'. The addition as made by the Assessing Officer being based on mere presumptions and assumptions and without any corroborative evidence, could not be sustained. Manish R. Bhatt for the appellant. JUDGMENT The following question has been proposed…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492