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TMI Blog2022 (12) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the course of search has held that 153A proceedings are not valid and he has not decided the issue on merit. A perusal of the order of the CIT (A) shows that neither he has decided the appeal on merit, nor has he passed any comments regarding the various incriminating material found during the course of search and he has simply accepted the contention of the assessee that no incriminating material was found during the course of search. We deem it fit and proper to restore the issue to the file of the learned CIT (A) with a direction to give his finding regarding the nature of incriminating material found during the course of search and decide the issue keeping in mind the decision of Gopal Lal Badruka Vs. DCIT [ 2012 (6) TMI 657 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings on the ground that no incriminating material was found during the course of search and the statement recorded u/s 132(4) does not constitute any incriminating material. The assessee before the learned CIT (A) also relied on various decisions. 3.1 Based on the arguments advanced by the assessee, the CIT (A) held the initiation of proceedings u/s 153A of the Act as invalid and therefore, the orders made thereunder are not sustainable. The relevant observation of the learned CIT (A) from Para 6 onwards reads as under: 6.0) I have gone through the facts of the case and the submissions of the appellant. On the issue of validity of initiation of proceedings u/s 153A, where no incriminating material was found during the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st-search enquiry and on the basis of statements recorded u/s 132(4) of the I.T.Act, therefore, the same cannot constitute incriminating material so as to enable the Assessing Officer to assume jurisdiction u/s 153A of the Act I.T. Act Respectfully, following the ratio laid down above, it is held that the statement recorded u/s 132(4) cannot be treated as seized / incriminating material for making addition u/s 153A of the Act for the above two assessment years. Accordingly, the initiation of proceedings u/s 153A is held to be not valid and the orders made thereunder are not sustainable. 6.3 As I have decided that the proceedings u/s 153A are not validly 6.3) initiated in the absence of any seized material, the assessment orders passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation by giving voluntary admission with regard to Capital gains on sale of commercial space, at the time of search. 6. The Ld. CIT(A) erred in not appreciating the fact that the addition made on account of Capital Gains on sale of commercial space is on the basis of statement given by the Executive Director of the Company u /s. 132(4) of the Act on comparison of amounts mentioned as consideration in the Agreement of Sale. 7. The Ld.CIT(A) erred in not relying upon the decision as held by the P H High Court in the case of Charanjit Kumar Vs. CIT (2006) 201 CTR 37: Retraction should be at the earliest opportunity or at least within reasonable time. 8. The Ld. CIT (A) erred in not relying upon the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard Resolution which was seized does not constitute incriminating material. He submitted that the learned CIT (A) has passed a speaking order and therefore, the same should be upheld. 7. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned CIT (A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us by both sides. It is an admitted fact that a search seizure operation took place in the premises of the assessee on 18.02.2016 and certain incriminating documents were found and seized. We find the AO in the order passed u/s 143(3) r.w.s. 153A of the Act determined the total income at Rs.20,78,40,695/- as against the returned inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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