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Facts
The assessee filed an original return for AY 2019-20. Following a search operation, a notice under Section 148 was issued, and the assessment was completed under Section 143(3) read with Section 147, adding Rs. 20,30,000/- as unaccounted brokerage income. This addition was based on an estimated 20% share of alleged total unaccounted brokerage of Rs. 84,00,000/-, derived from seized documents.
Held
The Tribunal found that the addition was based solely on rough jottings and loose papers without any corroborative evidence. Following a Coordinate Bench decision in a similar case for a partner in the same group, where an identical addition was deleted due to lack of corroboration, the Tribunal deleted the addition. This reasoning was applied to all four assessment years (2019-20 to 2022-23) due to identical facts and issues.
Key Issues
Whether the addition of unaccounted brokerage income based solely on estimated figures from seized loose papers, without corroborative evidence, is sustainable in law.
Sections Cited
250, 139(1), 132, 148, 143(2), 142(1), 143(3), 147, 69A, 115BBE
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
आदेश क� आदेश क� ��त�ल�प ��त�ल�प अ�े�षत अ�े�षत अ�े�षत/Copy of the Order forwarded to : अ�े�षत आदेश आदेश क� क� ��त�ल�प ��त�ल�प 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 5. �वभागीय ��त�न�ध, आयकर अपील$य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड) फाईल / Guard file.