9911796707
TMI Blog2023 (7) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... f unexplained cash shortages made by the Ld. Assessing Authority and confirmed by Id. First Appellate Authority is grossly injudicious and bad at law. 2. Under the facts and circumstances of the case, the assessment made u/s 153A of the Act is injudicious and not in accordance with the provisions of the Income Tax Act, 1961 as the case of the appellant for the relevant year is a completed assessment case and during the course of search operation conducted u/s 132 of the Act, the appellant was not found to be in possession of any undisclosed money or other valuables nor any incriminating documents were found which could form the basis for the assessment of undisclosed income of Rs. 4,25,000/- in the case of the assessee. 3. Under the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oup. Assessee is the wife of Sh. Harmender Singh Saran. Search & seizure proceedings u/s 132 of the Act were initiated against the assessee also. Notice u/s 153A of the Act was issued on 02-06-2010 requiring the assessee to file her return of total income. In response thereto, return declaring income of Rs. 2,76,980/- was filed on 22/11/2010. During the year assessee declared income from salary received from M/s HBN Dairies & Allied Ltd. On 16-12- 2011, the AR of the assessee filed a copy of personal cash book of the assessee before the A.O. Unexplained shortage of cash in the cash book has been worked out at Rs. 14,25,000/- on 12-12-2006. Thus, the A.O. made addition of Rs. 14,25,000/- to the total income of the assessee on account of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llows:- "A search and seizure operation u/s 132 of the I.T Act, 1961 was carried out in HBN Group on 20-11-2009. The group is engaged in diverse businesses ranging from dairy development and marketing of dairy products; real estate development, home loan finance, and running a broadcast channel under the brand 'CNEB', through various companies. The group is mainly controlled by Sh. Harmender Singh Saran, who is the Chairman of HBN group. Assessee is the wife of Sh. Harmender Singh Saran. Search & seizure proceedings u/s 132 of the Act were initiated against the assessee also. 2. Notice u/s 153A was issued on 02-06-2010 requiring the assessee to file her return of total income. In response thereto, return declaring income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.03.2011 Ld. AR has filed acknowledgement of Return of Income in support of its claim that return for various Assessment years. These are the returns filed subsequent to issuance of return u/s 153A. The Ld.AR during the appellate proceeding has not filed any evidence of filing original/belated return of income u/s 139. Therefore, it cannot be established that the appellant has filed return & the same was processed u/s 143(1) & no notice u/s 143(2) was issued. Therefore, the same may be treated as closed assessment. In written submission, the Ld.AR has only claimed that return of Income filed was processed u/s 143(1) & no notice was issued u/s 143(2). Ld. AR has not mentioned even date of filing of return of income & date of processing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents does not applies to the facts of the case, as appellant has not proved that as prior to search, the returns were filed and assessment was completed. Without prejudice to the above findings, it may be mentioned here that lot of incriminating documents were found and seized as a result of search and seizure operation u/s 132 of I.T. Act in HBN group of cases which suggested generation and investment of unaccounted money in various property/advances and generation of unaccounted money by way of Purchase and Sale of properties. Unexplained cash of Rs. 26,99,500/- was also seized from locker no. 506 located at HDFC Bank Ltd., B-1, Community Centre, Janakpuri. The Chairman of the group Sh. H.S. Saran has made disclosure of Rs. 140.05 C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed case any incriminating assessments, the AO would assume the jurisdiction to material assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search and the other material available with the AO including the income declared in the returns; and iv) in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material ..... X X X X Extracts X X X X X X X X Extracts X X X X
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