MILAN KUMAR BASANT,RAMGARH vs. DCIT/ACIT, CIRCLE-1, HAZARIBAGH

ITA 419/RAN/2025Status: DisposedITAT Ranchi28 July 202611 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that additions cannot be sustained solely on the basis of documents found in the possession of a third party without corroborative evidence. The revenue failed to prove that the assessee received the additional salary, and the assessee's records showed otherwise. Therefore, the addition was deleted.

What were the facts?

The assessee, an individual, declared salary income of Rs. 70 lacs from a company where his family members are directors. The Assessing Officer (AO) made an addition of Rs. 1.20 crores based on documents found during a search of the assessee's Chartered Accountant, alleging additional salary income. The assessee contended that the addition was solely based on third-party documents without corroborative evidence and that his actual salary and bank accounts did not reflect this additional income.

What were the issues?

Whether an addition can be made solely on the basis of documents found during a search of a third party (the assessee's CA) without corroborative evidence? Whether the presumption under Section 132(4A) and 292C can be drawn against the assessee for documents seized from a third party?

Which sections of the Income-tax Act were involved?

Section 132(4A),Section 292C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri Devesh Poddar, AR
For Respondent: Shri Sandipan Khan, Sr. DR
Hearing: 28/07/2026Pronounced: 28/07/2026

PER: BENCH

1.

This is the appeal filed by the assessee against the order of the ld. CIT(A), NFAC, Delhi in Appeal No. NFAC/2021-22/10370528 dated 12/09/2025 for the A.Y. 2022-23. 2. Shri Devesh Poddar, ld. A.R. is represented on behalf of the assessee and Shri Sandipan Khan, ld. Sr.DR is represented on behalf of the revenue.

3.

It was submitted by the ld. AR that the assessee is an individual and his family members are Director in Shree Nanak Ferro Alloys Private Ltd.. It was the submission that the assessee had received salary of Rs. 70.00 lacs from the said company during the impugned assessment year 2022-23. The assessee had disclosed the same in its return filed. TDS had also been deducted in respec

The order continues below.

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