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TMI Blog2022 (3) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 45,00,000/- each in A.Y. 2011-12 2012-13 but the factual position was that investment exist only in A.Y. 2011-12 and thus there was no satisfaction of the AO for other year than 2012-13 u/s 153C . Even for A.Y. 2011-12, the satisfaction recorded were not based on incriminating document found as a result of search, all the additions made by the AO were either of the items reflected in the Balance Sheet or Profit and Loss account of the assessee. He has further noted that no addition was made by AO on the basis of any incriminating material found and the addition made by AO did not co-relate with satisfaction noted by him. He thereafter relying on the decision of Sinhgad Technical Education Society [ 2017 (8) TMI 1298 - SUPREME CO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and other business associates concern and other key persons. During the course of search operation at the residence of Shri Abhay Maheshwari at New Delhi, a laptop was found and seized. On scanning of seized data, it was found that M/s. Golf Link Hospitality Pvt. Ltd. has obtained unsecured loan, share application money and share capital from various doubtful entities, assessee being one of them. Accordingly, notice u/s 153C of the Act was issued on 28.06.2016 and in response to which assessee filed the return of income on 29.09.2011 declaring total income of ₹ 4,49,330/-. Thereafter case was taken up for scrutiny and assessment was framed u/s 153C r.w.s 143(3) of the Act and the total income was determined at ₹ 14,57,28,670 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g through various entities including assessee, controlled by them as mentioned in the satisfaction note, therefore the mere fact that the entries were recorded in regular balance sheet of the beneficiary could not by itself allow the treatment of such seized documents as non-incriminating in the context of entities providing accommodation entries i.e. assessee as the expression used in 153C is in relation to person other than the searched person. 3. Whether on facts and circumstances of the case and in law, the Ld. CIT(A) erred in law while holding that the seized balance sheet of Golf Link Hospitality Pvt. Ltd. did not constitute incriminating material on grounds that the balance sheet was part of regular books, without appreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is liable to be set aside and the order of the AO be restored. 7. Similar grounds have been raised by Revenue in ITA No.4949/Del/2018 for A.Y. 2014-15. 8. Assessee in the CO No. 161/Del/2019 for Assessment Year 2011-12 has raised the following grounds: 1. On the facts and circumstances of the case, the order passed by the learned CIT (A) is bad both in the eyes of law and facts. 2. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in not adjudicating and dismissing the grounds raised on merits of the additions made by the AO treating the same as infructuous. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in not adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by AO. 13. Learned AR on the other hand submitted that proceedings u/s 153C of the Act was initiated against the assessee by issuing notice u/s 153C of the Act. He submitted that the reasons for issuance of notice was that assessee had given unsecured loan to the M/s. Golf Link Hospitality Pvt. Ltd. He submitted that assessee had not provided unsecured loan to M/s. Golf Link Hospitality Pvt. Ltd. but the transaction was in fact an investment in share capital of M/s. Golf Link Hospitality Pvt. Ltd. amounting to ₹ 45,00,000/-. He submitted that the amount had already been shown in the books of accounts of the assessee and the AO had accepted the same and no adverse inference was drawn by the AO with respect to the transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no satisfaction of the AO for other year than 2012-13 u/s 153C of the Act. He has further given a finding that even for A.Y. 2011-12, the satisfaction recorded were not based on incriminating document found as a result of search, all the additions made by the AO were either of the items reflected in the Balance Sheet or Profit and Loss account of the assessee. He has further noted that no addition was made by AO on the basis of any incriminating material found and the addition made by AO did not co-relate with satisfaction noted by him. He thereafter relying on the decision of Hon ble Apex Court in the case of Sinhgad Technical Education Society (supra) held the notice issued u/s 153C of the Act to be void ab initio invalid and lega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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