ACIT, CC-14, DELHI vs. MAYFAIR RESORTS INDIA LTD., NEW DELHI

ITA 2008/DEL/2021Status: DisposedITAT Delhi17 August 2023AY 2010-1118 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that no addition can be sustained solely on the basis of an unsigned draft agreement found with a third party without corroborative evidence of cash payment. The presumption under Section 292C is rebuttable and cannot be drawn against the assessee for documents found with a third party.

What were the facts?

During a search, an unsigned Agreement to Sell (ATS) was found on a third-party deed writer's computer, suggesting a cash transaction of Rs. 1.50 crore. Both the assessee and the other party denied the existence of this ATS and any cash exchange.

What were the issues?

Whether an addition can be made based on an unsigned document found with a third party, and if the presumption under Section 292C can be invoked in such circumstances.

Which sections of the Income-tax Act were involved?

Section 69A,Section 292C,Section 69

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Income Tax Appellate Tribunal, DELHI BENCH: E: NEW DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

Pronounced: 17.08.2023

PER CHANDRA MOHAN GARG, J.M.

This appeal has been filed against the order of CIT(A)-26 New Delhi dated 26.08.2021 for AY 2010-11. 2. The grounds of revenue are as follows:- i. Whether the Ld. CIT(A) has erred in law and on facts of the case by deleting the addition of Rs. 1.50 Cr. Made as unexplained money u/s69A of the IT, 1961 by ignoring the established facts that seized document found during search has permissibility as per the provision of presumption u/s292C of the IT Act, 1961. ii. Whether the Id. CIT(A) has erred in law and on facts by ignoring facts that the contents of ATS where all other details like past ownership of plot, details of director of these

The order continues below.

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