9911796707
TMI Blog2018 (1) TMI 1567X X X X Extracts X X X X X X X X Extracts X X X X ..... have the satisfaction of the A.O. that money, bullion, jewellery or other valuable article or thing or any books of accounts, documents seized or requisitioned pertains to or relates to the assessee, which means that unless there is an incriminating material belonging to the assessee is found, the action u/s 153C of the Act is not permissible. In the assessee s case there was no incriminating material found and seized from the premises of the group cases. We hold that the notice issued u/s 153C is not sustainable and accordingly quashed. This view is upheld by the Hon ble Supreme Court in the case of CIT Vs. Sinhagad Technical Education Society ( 2017 (8) TMI 1298 - SUPREME COURT ) . Respectfully following the judgement of the Hon ble Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer has recorded a statement u/s 131 of the Act on 2.3.2009 from Shri Kotta Srinivas, wherein, the flat buyer admitted that he had agreed to pay ₹ 11,75,000/- and paid ₹ 11 lakhs for purchase of flat No.S-5 (1075 Sft) as per which the sale price worked out to ₹ 1,093/- per Sft. The A.O. collected the information from the flat buyers and also market information regarding the cost of construction and the sale price of the flats and also recorded the statements from the land owners and determined the sale price at an average rate of ₹ 989/- and the cost of construction at ₹ 650/- and accordingly estimated the undisclosed income at ₹ 11,05,500/- and brought to tax. 3. Aggrieved by the order of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the assessee and there was no material found in the premises of the searched person relating to the assessee evidencing the undisclosed income for the assessment year 2008-09. As per the provisions of section 153C of the Act, the A.O. is permitted to invoke the provisions of section 153C of the Act by issuing notice u/s 153C of the Act, when there is an incriminating material available with the searched person and the satisfaction not recorded by the A.O. In the assessee s case as per the assessment order, the entire assessment order made on estimation basis but not on the basis of any incriminating material. The A.O. has invoked the provisions of section 153C of the Act since the books of accounts were not produced by him during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other methods, such as project completion method. The advantage of the percentage completion method employed by the appellant firm is that revenue cannot be postponed and it is recognised the moment it is received. The assessing officer has given no finding as to why he has rejected the method of accounting followed by the appellant except to say that books of accounts were not available at the time of search. The Assessing Officer was bound to explain why the method of accounting followed by the appellant in preparing its final accounts submitted along with the return of income did not, in his opinion, reveal the true and correct income of the appellant firm. Having failed to do so, I find no basis in the Assessing Officer s rejection of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material found in the premises of the searched person relating to the assessee. Now it is settled issue that for initiating the proceedings u/s 153C of the Act, it is incumbent upon the A.O. to have the incriminating material evidencing the undisclosed income. In the assessee s case no such evidence was found during the course of search in the group cases. As per the provisions of section 153C of the Act, it is mandatory to have the satisfaction of the A.O. that money, bullion, jewellery or other valuable article or thing or any books of accounts, documents seized or requisitioned pertains to or relates to the assessee, which means that unless there is an incriminating material belonging to the assessee is found, the action u/s 153C of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
