DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, AGRA vs. SH. SAURABH GUPTA, AGRA

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ITA 37/AGR/2024Status: DisposedITAT Agra13 February 2025AY 2017-18Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)2 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the presumption of correctness of seized material does not extend to a "third" person other than the searched assessee. Without further substantiation, the CIT(A)'s deletion of additions was confirmed.

What were the facts?

The Revenue appealed against the CIT(A)'s orders deleting additions made under section 153C based on seized documents. The seized documents were found during a search of a third party, not the assessee.

What were the issues?

Whether additions made under Section 153C based on seized documents belonging to a third party are valid without further substantiation.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH, AGRA

Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL

Hearing: 13.02.2025Pronounced: 13.02.2025

ORDER Per Satbeer Singh Godara, Judicial Member: These Revenue’s twin appeals & 37/Agr/2022 for assessment years 2015-16 & 2017-18, arise against the Commissioner of Income Tax(Appeals)-4 [in short the “CIT(A)], Kanpur’s separate orders in Appeal Nos. CIT(A)-IV/KNP/10331/2014-15 and CIT(A)-IV/KNP/12059/2016- 17, both dated 30.05.2022, involving proceedings under section 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Heard both the parties at length. Case files perused.

3.

It emerges during the course of hearing with the able assistance of both the parties that there arises the first and foremost question of correctness of the learned assessing officer’s action proceeding against the assessee under section 153C of the Act thereby making the additions in issue based on seized/incriminating documents (at page 144 onwards). We make it clear that the said seized documents have indeed been reflected in the CIT(Appeals)’s detailed discussion forming part of the case records.

4.

Learned CIT(DR) vehemently argued on the impugned additions that seized documents’ entries ought to have been explained in assessee’s case.

We are of the considered view that once it is an instance of a “third” person other than the searched assessee, presumption of correctness of the contents of his seized material would not be extended herein. We, thus, conclude that once there is no further substantiation by the learned authorities below, learned CIT(Appeals)’s orders deleting the impugned additions deserves to be confirmed in very terms. Ordered accordingly.

5.

No other ground has been raised or pressed.

6.

These Revenue’s twin appeals & 37/Agr/2022 are dismissed. A copy of this common order be placed in respective case files. Order pronounced in the open court on13THFebruary, 2025.

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