9911796707
Advanced Search 
TMI Blog2018 (1) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... age disallowed expenditure of Rs. 55,923. The A.O. also found that assessee had received share application money amounting to Rs. 1,25,00,000 from Kolkata based companies. The A.O. after giving opportunity of being heard to the assessee, made the addition of Rs. 1.25 crores on account of unexplained share application money and treated the same as unexplained cash credit under section 68 of the I.T. Act, 1961. The A.O. passed the assessment order dated 30th March, 2015 under section 143(3) r.w.s.153A/153C of the I.T. Act, 1961. 3. The assessee challenged the addition before Ld. CIT(A). The submissions of the assessee are reproduced in the appellate order. The Ld. CIT(A) found that assessee has proved the identity, creditworthiness and genuineness of the share applicants by submitting their name, address, PAN, bank statements and balance confirmations and ITR/acknowledgments. It was, therefore, noted that assessee proved the conditions of Section 68 of the I.T. Act. The addition of Rs. 1.25 crores was deleted and appeal of assessee allowed. 4. The Revenue, in its appeal, challenged the deletion of addition of Rs. 1.25 crores under section 68 of the I.T. Act. The assessee in the cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the Assessee in the rejoinder relied upon the submissions made before the Ld. CIT(A) and submitted that assessee produced sufficient documents before A.O. to prove ingredients of Section 68 of the I.T. Act. Therefore, addition was correctly deleted by the Ld. CIT(A). 8. We have considered the rival submissions. The Revenue Department made a case under section 153C of the I.T. Act against the assessee on the basis of the search conducted in Aryan Sainik Group of cases. According to Section 153C of the I.T. Act, the A.O. should be satisfied that any money, bullion, jewellery or other articles or things or books of account or documents seized or requisitioned belongs or belong to the person other than the person referred to in Section 153A, then the books of account or documents or assets seized are requisitioned, shall be handed-over to the A.O. having jurisdiction over other person and that A.O. shall proceed against each such other person and issue such other person notice and assess or re-assess the income of such other person in accordance with the provisions of Section 153A of the I.T. Act. 8.1. It is clear from the language of Section 153C of the I.T. Act that before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in CIT v. Sinhgad Technical Education Society [2015] 378 ITR 84 (Bom) affirmed. (ii) That the assessment order passed by the Assessing Officer covered eight assessment years. For six assessment years the assessment was under section 153C of the Act. The assessment order was set aside only in respect of four of those assessment years and on a technical ground. The objection pertaining to the four assessment years in question did not relate to the other tax assessment years, namely, 2004-05 and 2005-06. Nor did this decision have a bearing in respect of assessment for assessment year 1999-2000 or assessment year 2006-07. The necessary consequence would be that the conclusions of the Assessing Officer in his assessment order regarding the activities of the trust not being genuine and not carried out in accordance with the trust deed or cancellation of registration, denial of benefits of sections 11 and 12 would not be affected by this judgment." 8.3. Considering the facts of the case in the light of above decisions, it is clear that additional ground being legal in nature and all material facts are available on record and it being the jurisdictional issue, we admit the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he primary condition that has to be fulfilled is that the money, bullion, documents, etc., seized should belong to such other person. If this condition is not satisfied, no proceedings could be taken under section 153C. The JC group was a partner in the Mumbai Special Economic Zone and Navi Mumbai Special Economic Zone projects of India. This group had floated various companies to purchase large chunks of land in the vicinity of the special economic zones. The group's real estate operations were being handled by V, G and D. D was also the managing land transactions outside the Mumbai Special Economic Zone. The assessee was one of the companies floated by this group to purchase land outside the Mumbai Special Economic Zone. During search of D's residence, certain incriminating documents were seized and his statement was recorded. A show cause notice was issued to the assessee informing it that Rs. 38.45 crores, which was a sum reflected from the documents seized from D's residence and Rs. 4 crores in addition, which was evidenced by loose documents in the form of cash receipts, were found during search and seizure proceedings. The assessee was called upon to explain a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gains. The Commissioner (Appeals) and the Tribunal held that the notice under section 153C was not valid. On appeal to the High Court : Held, dismissing the appeals, that the Assessing Officer did not have the benefit of the seized material while issuing the notice under section 153C. In the light of the fact that the Revenue did not produce any material to show that the materials were available at the hands of the Assessing Officer at the time of issuing notice, the Tribunal rightly came to the conclusion that he assumption of jurisdiction under section 153C was not valid." 12.. The ITAT, Agra Bench in the case of ACIT, Circle-I, Gwalior vs. Global Estate (2013) 142 ITD 740 (Agra) held as under : * The assessee had a case for quashing of proceedings under section 153C. No material is produced to prove that the Assessing Officer in the case of person searched was satisfied that any money, bullion, jewellery or other valuable article or things or books of account or documents seized or requisitioned belongs to or belong to a person other than the person referred to in section 153A. * No material is produced before to show if any satisfaction was recorded by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
