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Issues involved: Assessment u/s 153A of Income Tax Act for seized goods, ownership of goods booked by assessee, applicability of Section 132(4A) presumption, liability of booking agent.
Assessment u/s 153A of Income Tax Act: The assessee, engaged in railway parcels/luggage booking business, faced proceedings u/s 153A for the assessment year 2004-05 due to cash, silver, and gold jewellery found in booked parcels. The CIT(A) and ITAT ruled in favor of the assessee, noting the 14 parties who admitted booking the goods and claimed ownership, absolving the assessee of liability. Ownership of booked goods: The ITAT emphasized that the assessee was a mere booking agent for angarias who booked the parcels, with the angarias taking responsibility for conveying the goods. The onus to prove ownership was shifted to the angarias who failed to disclose the real owners, leading to the assessee being cleared of liability as the goods did not belong to him. Applicability of Section 132(4A) presumption: Section 132(4A) presumption was discussed, highlighting that the assessee successfully rebutted the presumption by providing evidence of the 14 angarias who booked the parcels. The ITAT held that the assessment should have been on the angarias, not the booking agent, as the ownership was claimed by them. Liability of booking agent: The High Court concluded that the assessee, acting solely as a booking agent, was not responsible for the seized goods and should not be taxed for their value. The court dismissed the appeal, stating that no substantial question of law arose as the assessee had proven the goods did not belong to him.
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