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TMI Blog2022 (4) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... he searched person - HELD THAT:- As in the instant case before us the assessee has not established that the material found from the search in the case of Sh Shirish C Shah belongs to the assessee. During the course of the search in the case of Sh Shrish Shah, he stated to have been engaged in providing bogus accommodation entries through the companies controlled by him including M/s Secunderabad Healthcare Private Limited. The DCIT, central circle found that said entity has given accommodation entry of the loan to the assessee and accordingly he provided said information to the Assessing Officer. This fact is evident from the reasons recorded by the Assessing Officer reproduced in the assessment order For invoking the provision of section 153C of the Act during relevant time the prime condition of material belonging to third/other person was to be fulfilled as held by the Hon ble Supreme Court above in Sinshad Technical Education Society [ 2017 (8) TMI 1298 - SUPREME COURT ] In view of the above discussion, the cross objection of the assessee accordingly dismissed. - ITA No. 2595/MUM/2019, CO No. 103/MUM/2021, ITA No. 2595/MUM/2019 - - - Dated:- 29-4-2022 - SHRI KULDIP SINGH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Briefly stated facts of the case are that the assessee is domestic company and filed its return of income for the year under consideration on 29/10/2012 declaring total income at nil. In the case of the assessee, the Assessing Officer received an information from the Deputy Commissioner of Income-Tax (DCIT) Central Circle, Mumbai, who was assessing the case of Mr. Shirish C Shah. In the said information, he intimated that a search under section 132 of Income Tax Act, 1961 (in short the Act ) was carried out at the various premises of Sh. Shirsh C Shah, who happened to be engaged in providing bogus accommodation entries for long-term capital gain, share capital/ share premium, turnover, loan etc. through various entities including one company namely M/s Secunderabad Health Care Limited. The DCIT further intimated that the assessee has obtained accommodation entry by way of loan of Rs.25 lakh on 18/03/2011 from said company. In view of the information received, the Assessing Officer in the case of the assessee recorded reasons to believe that income escaped assessment and accordingly, issued notice under section 148 of Act on 31/03/2017. In response, the assessee submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, in response filed certain documents in respect of each parties which inter alia include copy of bank statement of the assessee highlighting receipt of loan through cheque and repayment thereof, ledger account of those entities in the books of accounts of the assessee, Ministry of Company Affairs (MCA) record of those loan parties claiming that those companies were live. The assessee has summarized the documents filed before the Assessing Officer in his reply before the Ld. CIT(A), which is extracted as under: Name of the Party Registered Office PAN of the Party Amountof Loan Accepted Date of Loan Taken Date of Repayment Mode of Acceptance/Re payment Remarks Alishan Estate Private Limited 212, Martin Burn, 2nd floor, R.N. Mukerjee Road, Kolkatta, West Bengal, 700001 AAFCA2670L 25,00,000 08/4/11 12/10/12 Cheque/RTGS Assessee Bank Statement highlighting the transaction of acceptance and repayment Ledger A/c in assessee book M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the unsecured loan parties, returned back of notice under section 133(6) of the Act and background of the information received in the case of Sh Shirish C Shah, he held the unsecured loans under reference as unexplained cash credit in terms of section 68 of the Act. The relevant finding of the Ld. Assessing Officer is reproduced as under: 5.2 It needs no elaboration that through a catena of decisions of the Courts including the Hon ble Apex Court have held that the three fundamental tests which have to be established by the assessee to discharge the burden under section 68 of the Act are (i) Identity of the creditor; (ii) Creditworthiness of the creditor; and ill) Genuineness of the transaction. 5.3 It is imperative to mention here the background of reopening of assessment in the present case before proceeding further. A search survey action was carried out in the case of Shri Shirish Chandrakant Shah at the residence of his key employees and associates at Mumbai. On the basis of the various documents seized/impounded from the various premises, the activities of Shri Shirish Chandrakant Shah is briefly enumerated as under: Shri Shirish Chandrakant Shah manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bank accounts of the beneficiaries as share capital/premium, unsecured loans/payout on sale of shares of the listed companies managed and controlled by Shri Shirish Chandrakant Shah. 5.5 In view of the above discussion and facts of the case, it is clear that the assessee company has not been able to prove the creditworthiness of the concerns advancing the loans and genuineness of the transactions. The assessee company has not offered any satisfactory explanation about the nature and source of the amount credited in its books of accounts. Recently the Hon'ble Supreme Court has in the case of Navodaya Castle (P) Ltd. v. CIT (2015) 230 Taxman 268, upheld the order of the Hon'ble High court, wherein it is held that certificate of incorporation, PAN etc., is not sufficient for purpose of identification of subscriber company when there was material to show that subscriber was a paper company and not a genuine investor. The creditworthiness is not proved by showing issue and receipt of a cheque or furnishing a copy of the statement of bank account, there should be evidence of a positive nature to show that the subscribers had made genuine investment. The onus of proving th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the provisions of section 68 of the IT. Act, 1961. Penalty proceedings under the provisions of section 271(1)(c) of the I.T. Act, 1961 are initiated concealment of income by furnishing of inaccurate particulars in respect of the same. 10. Before the Ld. CIT(A) the assessee filed certain additional documents to substantiate his claim of loans as genuine. The list of relevant documents in the form of a table, reproduced by the Ld. CIT(A) is extracted as under: Name of the Loan Creditors Details Alishan Estate Pvt. Ltd. Confirmation letter in original - Page 31 ITS of the loan creditor -Page 32 Bank statement copy of the loan creditor highlighting the debit entries in their bank statement with immediate sufficient fund available with the loan creditor and Interest payout page no 33., Audited accounts page no 36. Azofen Private Limited Confirmation letter in original -Page 37 38 Pushpanjai Commo Trade Private Limited Confirmation letter in original page no -39, IT acknowledgement of the loan creditor page no 40, Bank stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Ld A.O. 2.4.1.4 The Ld. AR further argued inalit was also brought to the novice of the Ld.O hat Shri Shirish Chandrakant Shah has retracted his statement given during the search and hence no cognizance of the same can be taken and in view of this retraction also the addition made us 68 of the Act was not justified. He has also submitted that the only basis of coming to conclusion that the impugned unsecured loans were not genuine, was the statement of Shri Shirish Chandrakant Shah. 2.4.1.5 During the course of Assessment Proceedings the learned AO asked the Appellant to produce investors before him for verification. As against this the Appellant submitted having filed the requisite details as regards loans, the primary onus that lay upon him to prove the genuineness of the loans was already discharged. However, the AO did not accept the contentions of the appellant and after discussing the modus operandi explained by Shri Shirish Chandrakant Shah. during the course of search proceedings, based on the statement of Shri Shirish Chandrakant Shah his associates recorded in the course of Search Seizure Proceedings wherein they have confessed on oath that the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e validity of such retraction has also been settled judicially that any person who has made any statement can retract from the same with corroborative evidence. 2.4.1.7 This is also settled law that no addition/disallowance can be made solely on the basis of statement made u/s 132(4) of the Act without bringing any corroborative evidence on record. The Hon'ble Andhra Pradesh High Court in its decision dated 09.09.2014 in ITAT No. 112 of 2003 in the case of CIT vs. Naresh Kumar Agarwal has held that 10. Assuming that a statement, which fits into sub-section (4) of Section 132 of the Act was recorded from the respondent, it needs to be seen as to how far that can constitute the basis for the appellant to proceed against the respondent. Subsection (4) of Section 132 of the Act itself, is to the effect that the statements recorded shall be treated as piece of evidence in the proceedings under the Act. That would be so, as long as the statement is not retracted. If the assessee comes forward with a plea that his statement was recorded under threat or coercion, the evidentiary value of the statement suffers a serious dent. 11. The mandate under sub-section (4) gets honou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his employee and this was verifiable from the books of accounts. In the circumstances, it was unsafe for the AO to proceed to make additions solely on the basis of the statement made under Section 132(4) of the Act, which was subsequently retracted. 16. Consequently, the Court is unable to find any legal infirmity in the conclusion reached by the ITAT that the addition of Rs. 86 lakhs to the income of the Assessee was not justified. Question (B) is answered in the affirmative, i.e., in favour of the Assessee and against the Revenue. Similarly, the Hon'ble ITAT, Mumbai vide its decision dated 04 11 2015 in the case of Tribhovandas Bhimji Zaveri in ITA No. 2250 and 2251/Mum/2013 has held as under. 25. The Ld D.R as well as the assessing officer has reiterated that the admission was made in the sworn statement recorded u/s. 132(4) and the same is admissible in evidence. A careful perusal of provisions of sec. 132(4) as well sec. 292C would show that the said provisions state that the statement taken u/s 132(4) may be used in evidence in any proceeding under the Act . Thus, this provision; gives discretion to the assessing officer not to use the statement in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer pursuant to the statement recorded u/s 132(4) of the Act. The assessee has retracted from the said disclosure which has not been accepted by the revenue. It is required to be borne in mind that the revenue ought to have collected enough evidence during the search in support of the disclosure statement. It is a settled position of law that if an assessee, under a mistake, misconception or on not being properly instructed, is over assessed, the authorities are required to assist him and ensure that only legitimate taxes are collected. The Assessing Officer cannot proceed on presumption u/s 132(4) of the Act and there must be something more than bare suspicion to support the assessment or addition. In the present case, though the revenue's case is based on disclosure of the assessee stated to have been made during the search u/s 132(4) of the Act, there is no reference to any undisclosed cash, jewellery, bullion, valuable article or documents containing any undisclosed income having been found during the search. 5.1 In the case of KailashbenManharla/Chokshi (supra), this Court has held as under:- 22. We have heard learned counsels appearing for the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do not find any infirmity in the said order. Learned advocate for the revenue is not in a position to produce any material on record so as to warrant interference by this Court. The deletion of addition on account of household expenses and cloth transaction has been rightly confirmed by the Tribunal. We also find that the Tribunal has rightly applied the principles of telescoping for reducing additions made by the Assessing Officer. We thus find that all the questions raised in the present appeals are required to be answered in favour of the assessee and against revenue. Similar law was laid down by the Hon'ble Gujarat High Court in the case of Chetnaben J Shah vs. ITO in Tax Appeal No. 1437 of 2007, after considering the CBDT Circular in F. No. 286/2/2003-IT(In) dated 10.03.2003 and letter in F.No. 286/98/2013- IT(Inv.I) dated 18.12.2014, wherein the emphasis has been made that no attempt should be made to obtain confession as to the undisclosed income, vide its decision dated 17.07.2016 has held as under. We have heard learned Counsel for the respective parties and perused the records of the case. We are of the view that the C1T (Appeals) has rightly appreciate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the provisions of Section 68 as well Section. Once the onus that lay under Section 68 of the Act is discharged, the addition u/s 68 of the Act cannot sustain. As per the provisions of the section 68 of the Act the appellant is required to establish the identity, genuineness and creditworthiness of the share applicant concerns. Several Hon'ble Courts have settled the issue of onus of the assessee uls 68 of the Act and it has been held that where any assessee submits the details of investors, submit confirmation of share capital from them, submit the assessment details of the investors and prove that the transaction under considerations have been made through proper banking channel it can be said that the assessee has discharged its onus of proving identity,genuineness and creditworthiness of the investors within the meaning of provisions of section 68 of the Act. It is important to note that the Hon'ble Courts have held that the assessee is not required to prove source of the source as held in the case of Tolaram Daga vs CIT reported in 59 IT 632. The Hon'ble High Court in the case of Addl. CIT vs Hanuman Agarawal reported in 151 IT 150 held that it can never ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1872. Section 68 of the Act is the statutory recognition of the said section according to which aperson is in the best position to know the relevant facts related to him. Treating the cash credits as income of the assessee is not a new concept introduced by the Act. The position under the 1922 Act, in respect of income from undisclosed sources was that such income from an undisclosed source could be assessed by making an assessment on the basis that the previous year for such an income would be the financial year. The effect of section 68 of the Act is that asum found credited in the books of the assessee can be charged to income-tax as his income. Over the years law regarding cash credits have evolved and has taken a definite shape. A few important aspects of the law with regard to Section 68 can be enumerated here- (i) Section 68 can be invoked when following three conditions aresatisfied. (a) when there is credit of amounts in the books maintained by the assessee (b) such credit has to be a sum of money during the previous year (c) either the assessee offers no explanation about the nature and source of such credits found in the books or the? explanation offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es on the assessee. Amount appearing in the books of accounts. of the assessee is considered a proof against him. He can prove the identity of the creditors by either furnishing their PANs or assessment orders. Similarly, genuineness of the transaction can be proved by showing that the money was received by an account payee cheque or by draft. Credit worthiness of the lender can be established by attending circumstances. Once the assessee produces evidences about identity, genuineness and credit worthiness of the lender onus of proof shifts to the Revenue. if above referred principles are applied to the facts and circumstances of the case under consideration, it becomes absolutely clear that the CIT(A) had rightly deleted the additions made u/s.68 of the Act by the AO. Assessee had filed PANs, bank statements and return acknowledgements of the creditors. We are of the opinion that by furnishing above details the assessee had discharged his burden of proof. if AO had any doubt about the credit worthiness or identity of the creditors, he had all the rights under the Act to hold further inquiry and confront the assessee with such inquiry. AO did not make any attempt to discharge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied on by the assessee of Hon'ble Bombay High Court in case of Gagandeep (supra) which reads as under:- Being aggrieved the revenue carried the issue in the appeal to the Tribunal. The impugned order of the tribunal holds that the respondent assessee had established the identity genuineness and capacity of the shareholders who had subscribed to its shares. The identity was established by the very fact that the detailed names address of the shareholders PAN numbers bank details and confirmatory letters were filed. The genuineness of the transaction was established by filing a copy of share application form, the form filed with the registrar of companies and as also bank details of the shareholders and their confirmations which would indicate both the genuineness as also the capacity of the shareholders to subscribe to the shares. Further the Tribunal while upholding the finding of CIT(A) also that the amount received on issue of share capital alongwith the premium received thereon would be on capital and not in the revenue field. Further reliance was also placed upon the decision of Apex Court in Lovely Exports P. Ltd. to uphold the finding of the CIT(A) and dismissing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence. Regarding question no. (ii) a) Before the Tribunal the revenue raised a new plea viz that the so called share premium has also to be judged on the touchstone of section 68 of the Act which provides for cash credit being charged to tax. The impugned order of the Tribunal allowed the issue to be raised before it for the first time overruling the objection of the respondent assessee. b) The impugned order examined the applicability of section 68 of the Act on the parameters of the identity of the subscriber to the share capital genuineness of the transaction and the capacity of the subscribe to the share capital. It found that the identity of the subscribers was confirmed by virtue of the AO issuing a notices us. 133(6) of the Act to them. Further, it hold that the revenue itself makes no grievance of the identity of the subscribers. So far as the genuineness of the transaction of share subscriber is concerned, it coucludes as the entire transaction is recorded in the books of accounts and reflected in the financial statements of the assessee since the subscription was done through the banking channels as evidenced by bank statements which were examined by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013) 145 ITD 240, wherein Tribunal has held that it is a prerogative of the Board of Directors of a company to decide the premium amount and it is the wisdom of the shareholders whether they want to subscribe to such a heavy premium. The revenue authorities cannot question the charging of such of huge premium without any bar from any legislated law of the land. The said decision has been affirmed by Hon'ble Jurisdictional High Court in case of Green Infra Ltd. (supra). The various courts have held that if the identity of the creditors proved and the transaction is through cheque and the income tax assessment particulars are provided then it can be held that the assessee has discharged its onus of proving the genuineness of the transactions. In the absence of any contrary corroborative evidence brought on record by the Assessing Officer, I am of the considered opinion that_ the Ld. AO was not justified making addition of Rs.1,75,79,740/- u/s 68 of the Act. Hence, the addition made to that extent is deleted. Accordingly these grounds are allowed. 2.5 In the result, the appeal is allowed. 14. Before us, the Ld. counsel of the assessee submitted that the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts of the assessee. The contention of the assessee that in view of the documents filed before the Assessing Officer and the Ld. CIT(A), identity, creditworthiness and genuineness of the transaction is established but according to the Ld. DR confirmation of the unsecured loan parties have been filed for the first time before the Ld. CIT(A) , and relying on which the Ld. CIT(A) has allowed relief to the assessee, which is in violation to Rule 46A of the Income Tax Rules. 17. We have reproduced summary of the submission of the assessee before the Assessing Officer as well as before the Ld. CIT(A). Before the Ld. CIT(A), the assessee has filed supplementary papers in the form of confirmation of the unsecured loan parties, bank statement of unsecured parties and in some cases audited financial statement of loan parties. Evidently, these documents were filed for the first time before the Ld. CIT(A), however Ld. CIT(A) in para 2.4.1.3 has wrongly recorded that these documents were filed before the Assessing Officer. On this wrong presumption, the Ld. CIT(A) concluded that complete details of investors were available with the assessing officer. Regarding the documents filed first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties as genuine. 20. Further it is not the case that Assessing Officer has only relied on the statement of Sh. Shirish C Shah, but he has asked the assessee to demonstrate, the identity, creditworthiness and genuineness of the transaction. But the assessee has emphasized only on the point that transactions have been made through banking channel and therefore genuineness of the transaction is established, whereas on perusal of the bank statement of Secunderabad Healthcare Private Limited available on page 16 of the paperbook, we find that there is no substantial bank balance and money is received in lakhs of rupees and after a lapse of one or two days same has been transferred out. The said party has filed return of income declaring nil income for assessment year 2011-12 (PB-18). Bank transactions on similar pattern have been observed in the case of Pushanjali Commotrade Private Limited (PB-110 to PB 112). Similarly, the Elgin Sales Promotion Ltd. has also filed return of income declaring nil income (PB-115). On perusal of profit and loss account, we find that small amount of profit of Rs.8,841/- (PB-122) has been declared in the profit and loss account. Thus, above loan pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an probabilities and normal course of human conduct. 14. Certificate of incorporation, PAN number etc. are relevant for purchase of identification, but have their limitation when there is evidence and material to show that the subscriber was a paper company and not a genuine investor. It is in this context, the Supreme Court in CIT Vs. Durga Prasad More [1971] 82 ITR 540 (SC) had observed:- Now we shall proceed to examine the validity of those grounds that appealed to the learned judges. It is true that the apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real. In a case of the present kind a party who relies on a recital in a deed has to establish the truth of those recitals, otherwise it will be very easy to make self-serving statements in documents either executed or taken by a party and rely on those recitals. If all that an assessee who wants to evade tax is to have some recitals made in a document either executed by him or executed in his favour then the door will be left wide open to evade tax. A little probing was sufficient in the present case to show that the apparent was not the real. The taxin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain amount of cash received during the accounting year, the Income-tax Officer is entitled to draw the inference that the receipt are of an assessable nature. The conclusion to which the Appellate Tribunal came appears to us to be amply warranted by the facts of the case. There is no ground for interfering with that finding, and these appeals are accordingly dismissed with costs. (emphasis supplied) Section 68 recognizes the aforesaid legal position. The view taken by the Tribunal on the duty cast on the Assessing Officer by section 68 is contrary to the law laid down by the Supreme Court in the judgment cited above. Even if one were to hold, albeit erroneously and without being aware of the legal position adumbrated above, that the Assessing Officer is bound to show that the source of the unaccounted monies was the coffers of the assessee, we are inclined to think that in the facts of the present case such proof has been brought out by the Assessing Officer. The statements of Mukesh Gupta and Rajan Jassal, the entry providers, explaining their modus operandi to help assessee s having unaccounted monies convert the same into accounted monies affords sufficient mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant details of the address or PAN identity of the creditor/subscriber are furnished to the Department along with copies of the Shareholders Register, Share Application Forms, Share Transfer Register etc. it would constitute acceptable proof or acceptable Explanation by the assessed. (5) The Department would not be justified in drawing an adverse inference only because the creditor/subscriber fails or neglects to respond to its notices; (6) the onus would not stand discharged if the creditor/subscriber denies or repudiates the transaction set up by the assessed nor should the AO take such repudiation at face value and construe it, without more, against the assessed. (7) The Assessing Officer is duty-bound to investigate the creditworthiness of the creditor/subscriber the genuineness of the transaction and the veracity of the repudiation. 17. Nova Promoters and Finlease (P) Ltd. (supra) after referring to the dismissal of SLP against Divine Leasing case (supra) observed as under:- So understood, it will be seen that where the complete particulars of the share applicants such as their names and addresses, income tax file numbers, their creditworthiness, share appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter relying upon CIT Vs. Nipun Builders and Developers, [2013] 350 ITR 407 (Delhi), wherein it has been held that a reasonable approach has to be adopted and whether initial onus stands discharged would depend upon facts and circumstances of each case. In case of private limited companies, generally persons known to directors or shareholders, directly or indirectly, buy or subscribe to shares. Upon receipt of money, the share subscribers do not lose touch and become incommunicado. Call money, dividends, warrants, etc. have to be sent and the relationship remains a continuing one. Therefore, an assessee cannot simply furnish some details and remain quiet when summons issued to shareholders remain un-served and uncomplied. As a general proposition, it would be improper to universally hold that the assessee cannot plead that they had received money, but could do nothing more and it was for the Assessing Officer to enforce shareholders attendance in spite of the fact that the shareholders were missing and not available. Their reluctance and hiding may reflect on the genuineness of the transaction and creditworthiness of the creditor. It would be also incorrect to universally state tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness activity. The share subscribers did not have their own profit making apparatus and were not involved in business activity. They merely rotated money, which was coming through the bank accounts, which means deposits by way of cash and issue of cheques. The bank accounts, therefore, did not reflect their creditworthiness or even genuineness of the transaction. The beneficiaries, including the respondentassessee, did not give any share-dividend or interest to the said entry operators/subscribers. The profit motive normal in case of investment, was entirely absent. In the present case, no profit or dividend was declared on the shares. Any person, who would invest money or give loan would certainly seek return or income as consideration. These facts are not adverted to and as noticed below are true and correct. They are undoubtedly relevant and material facts for ascertaining creditworthiness and genuineness of the transactions. 30. What we perceive and regard as correct position of law is that the court or tribunal should be convinced about the identity, creditworthiness and genuineness of the transaction. The onus to prove the three factum is on the assessee as the facts are with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of the Revenue are accordingly allowed. 24. In the cross objection, the assessee has mainly raised that assessment under section 147 of the Act has been made wrongly in the case of the assessee and assessment should have been made under section 153C of the Act . This objection has been raised by way of an additional ground on oral plea as the Ld. DR did not object for admitting the said plea of the assessee. 25 The contention of the Ld. counsel that assessment is consequent to search in the case of Sh. Shirish C Shah therefore the Assessing Officer was bound to issue notice under section 153C of the Act and thereafter proceed to assess income under section 153A of the Act. He submitted that provision of section 153C contains non-obstance clause, which specifically exclude the operation of section 147 of the Act and therefore, the Assessing Officer has erred in invoking section 147 of the Act. He submitted that if action under section 147 of the Act is permitted on the basis of the material found in the course of the search, then the provision of section 153A would become redundant. 26. In support of his contention he relied on the decision of Tribunal Delhi bench in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer having jurisdiction over such other person and the Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A. 30. On perusal of the above provisions it is evident that for invoking section 153C in the case of other person, prime requirement is that the material found from the searched person should be belonging to the third person. If said condition is satisfied, then irrespective of the provision of section 147, the assessment in the case of other person has to be carried out as per provision of section 153C of the Act. 31. But in the instant case before us the assessee has not established that the material found from the search in the case of Sh Shirish C Shah belongs to the assessee. During the course of the search in the case of Sh Shrish Shah, he stated to have been engaged in providing bogus accommodation entries through the companies controlled by him including M/s Secunderabad Healthcare Private Limited. The DCIT, central circle found that said entity has given accommodation entry of the loan to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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