Income Tax Appellate Tribunal

Shri Vinodchandra Dalsukhram Gokhlani vs.Income Tax Officer

MANU/IB/0370/2023

04.08.2023

Direct Taxation

When there is no doubt on papers and the conduct of the parties, creating doubt cannot be the basis for making addition

The return of income was field on 30.09.2014 declaring total income of Rs.7,52,410 and agricultural income of Rs.6,16,315. The same was processed under Section 143(1) of the Income Tax Act, 1961. The Assessing Officer observed that in this case information was received from Deputy Director of Income Tax (Investigation) and as per the documents found, the assessee was in receipt of on-money on sale of two shops at Radhanpur. Therefore, show cause notice was issued. The Assessing Officer made addition of Rs.21,58,000 as unaccounted sale proceeds. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

The entire revenue's base on addition is of the loose papers found in the diary as well as statements of the partners but the said statement was retracted. In fact, it was not retracted but the statement given at the time of survey did not reveal that there was on-money transaction in respect of sale of shop. From the affidavit of the partners as well as from the registered document of sale deed, it clearly indicates that the purchase price of the shop was Rs.2.21,000 only.

Creating doubt, when there is no doubt on papers as well as to that of the conduct of the parties cannot be the basis for making addition. Thus, the Assessing Officer as well as the CIT(A) was not right in making addition in respect of unaccounted sale proceeds. Appeal of the assessee is allowed.

Tags : Assessment Additions Legality

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