| Question And Answer | |
|---|---|
| Subject: | Sec. 153C |
| Category: | Income-Tax |
| Querist: | manali |
| Answered by: | KSA Legal Chambers |
| Tags: | dumb documents, Search and Seizure, search assessment, settlement commission |
| Date: | October 20, 2023 |
Assessee is an individual and purchase flat with Builder in FY 2017-18 On the basis of search conducted at Builder on 2018-19 and loose papers found with him as well as his acceptance in settlement Commission about receipt of ON money, assessee has received Notice U/sec 153C .
Noting on Loose papers seized is Surname of Assessee and some calculation of amount and interest . It does not have any date or signature or the place.
Can assessee raise the objection on issuance of Notice U/sec 153 C on following grounds:
1. It is dumb paper
2. There could be 1000 people similar to surname of assessee.
3. Only assesee has purchase flat with Builder does not mean the noting on seized paper belongs to or pertains to assessee.
4. Presumption can be drawn against assessee on the ground Builder has accepted in settlement Commission about acceptance of on money .
Pl guide and legal judicial support on above grounds.
Merely on the basis of documents found in the third premises the addition cannot be made in the hands of assessee. The assessee should request for a copy of the documents and also an opportunity for cross examination . In PCIT v. Vinita Chaurasia (2023) 291 Taxman 362 (Delhi)(HC) the court held that merely based on a seized document alone, without any further investigations the addition cannot be made .In ACIT v. Goyal Developers (2022) 219 TTJ 1041 (Indore )( Trib) , the Tribunal held that excel sheet found in the premises of builder and the builder has offered the income before the Settlement Commission. The addition made in the assessment of the assessee was deleted . The Tribunal relied on the ratio of Supreme Court Judgement in V.C.Shukla v CBI(1998) 3SCC 410 and Common Cause ( A Registered Society v.UOI (2017) 77 taxmann.com 245 ( SC) Also refer Dy.CIT v. Late Smt .Puspa Goyal Through Legal Heir Munna Lal Goyal ( 2022) 217 TTJ 65 (UO) (Jaipur)( Trib)