If any document find in search of income tax, that will presumed as original

In view of Sec. 292C, if any document is found during the search, such document shall be presumed to be depicting the true position. Even in that case, assessee would be under obligation to prove the 'source' and 'nature' of receipts to avoid the additions envisaged under provisions of Sec. 68, 69A, etc.
In the instant case, the assessee-partnership firm was subject to survey action under section 133A of the Act. Incriminating documents were recovered from its premises. During assessment, the AO had made certain additions based on certain computer printouts. During appellate proceedings before ITAT, the assessee relied on Section 292C, which contains a statutory presumption as to truth of documents found during survey/search, and argued that addition made by AO under Sec. 69A was not justified as the document which was presumed to be true showed that the amount came from the partner and hence, it could not be treated as unexplained money under sections 68, 69A etc.
The Tribunal held in favour of revenue as under:
1) All that section 292C provides for a presumption as to the truth of any document found during search or the moneys recovered from assessee is belonging to the assessee;
2) The same does not contradict, rather compliments and supports the rule of evidence as enshrined in sections 68, 69A, etc. The two, therefore, have to be read in conjunction and as complimentary, and not as disjunctive or de hors each other.
3) Sec. 68, 69A etc. casts an obligation on assessee to explain both the nature and source of the money, and not its source alone;
4) It was revealed during proceedings that the basic facts had been withheld by the assessee. Therefore, the deeming fiction of section 69A validly applied by the Revenue in the facts and circumstances of the case as the assessee's explanation was silent as to the nature of receipts - ALLIANCE HOTELS v. ACIT [2012] 28 taxmann.com 277 (Mumbai - Trib.)
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About Nitin Aggarwal

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