Indian Kanoon - Search engine for Indian Law

-Computation of undisclosed income - Assessment years 1986- 87 to 1996-97 - Based on loose papers found during survey after search as well as subsequent statement of assessee recorded under section 131, giving nature and details of transactions indicated therein in regard to money-lending business, Assessing Officer made addition of entire borrowings received from certain persons even though confirmation letters were produced by them - Whether since said loose papers did not indicate name of assessee, from list of persons given in loose papers it could not be inferred that either any loan or any advance was given to or received from those persons, and since total amount on those loose sheets indicated a very small amount, those loose papers alone would have to be considered as dumb papers having no evidentiary value and no addition could be sustained - Held, yes Assistant Commissioner of Income-tax v. Dr. Kamla Prasad Singh [2010] 3 ITR (TRIB.) 533 (PAT.) I. Section 158B of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income - Block period 1991-92 to 2000-01 Where documents found and seized and relied upon for making addition under appeal by revenue had neither date nor name of assessee, it could not be assumed or presumed as to when and by whom noting were recorded: no addition could be made on basis of such dumb documents [In favour of assessee] Neither any enquiry report nor any document procured either before or after the search can be considered while computing the undisclosed income. Similarly, it is also settled law that any document found during the course of search has to be interpreted literally and nothing can be added or subtracted.