The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition based on ‘dumb documents’.
The bench of Satbeer Singh Godara (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that as per the assessment findings some rough jottings and alleged map was seized from the searched person, which was in the nature of dumb document . The seized dumb document merely indicated some rates rather than pinpointing any specific on-money payment or receipt involving the assessee.
The department carried out a search action on 05.12.2007 in M/s. Kohinoor Foods Ltd. and its group of cases which allegedly led it to seizure of various incriminating documents “belonging” to the assessee.
The department initiated section 153C’s proceedings in assessee’s case vide satisfaction note in the former twin assessment years 2006-07 and 2007-08. There is no dispute between the parties that the last assessment year before assessment year 2008-09 in fact involves an assessment framed under section 143(3) of the Income Tax Act.
The department contended that the Assessing Officer had rightly added the on-money sum of Rs.8.99 crores going by the contents of the seized material compiled in the paper-book. The seized document forms part of the case records.
The ITAT noted that neither the assessee’s name was mentioned in the seized documents nor the same could be held as satisfying the corresponding criteria of “belongs” to the taxpayer so as to trigger section 153C proceedings resulting in the impugned addition.
The ITAT while upholding the deletion of the addition held that seized document merely indicates some rates than pinpointing any specific on-money payment or receipt; as the case may be, involving the assessee.
Case Details
Case Title: ACIT Versus New World Buildcon
Case No.: ITA No.5051/Del/2012
Date: 28.02.2025
Counsel For Appellant: Salil Kapoor
Counsel For Respondent: Baljeet Kaur
