9911796707
TMI Blog2023 (7) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... 31/12/2013 passed by the CIT(A)-XXXIII, (hereinafter referred to CIT(A) )New Delhi for assessment year 2007-08. 2. The assessee has raised the following ground of appeal :- 1. Under the facts and circumstances of the case, the addition of Rs. 14,25,000/- on account of 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 facts and circumstances of the case, the allegation of the ld. first appellate authority that no return u/s 139 was filed by the appellant and the only return filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Appeal by the CIT(A), the assessee preferred the present appeal on the grounds mentioned above. The Ld. Counsel for the assessee argued on the ground No. 2 and contended that there is no incriminating material found during the search and the addition made by the A.O. which has been sustained by the CIT(A) in the absence of any incriminating material found during the search, invoking the provisions of Section 153A for the year under consideration is illegal. Further Ld. AR relied on the judgment of the Hon'ble Supreme Court in the case of Principal Commissioner of Income Tax Vs. Abhisar Build Well Pvt. Ltd. Civil Appeal No. 6580/Del/2021 dated 24/04/2023. 5. Per contra, the Ld. DR vehemently contended that the order of the CIT(A) is well reasoned which requires no interference. 6. We have heard both the parties, perused the material available on record and gave our thoughtful consideration. 7. During the assessment proceedings while making the addition the Ld. A.O. has not referred to any incriminating material found during the search, the addition has been made based on the cash books produced by the Assessee during the assessment proceedings which reads as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07-08 22.11.2010 4. 2008-09 22.11.2010 5. 2009-10 22.11.2010 6. 2010-11 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 of return u/s 143(1) in absence of any evidence of fling when of original/belated return out incising yen the day in written submission, it is concluded that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appellants hand cannot be ruled out as the entire HBN Group of companies are run and controlled by the family members of Sh. H.S. Saran and individuals are closely related to Sh. H.S. Sran. Under these circumstances, nexus deposit of unexplained cash deposit in bank accounts or other assets and evidences with seized material gathered during search and seizure operation cannot be ruled out. 9. Thus, it is evident from the above that the addition made by the A.O. which was sustained by the CIT(A) is without their being any incriminating material found during the search and the addition has been made only based on the personal cash book produced by the AR of the Assessee during the assessment proceedings. The judgment of the Hon'ble Supreme Court in the case of Abhisar Build Well (Supra) is squarely applicable to the present case wherein the Hon'ble Supreme Court has concluded as under:- In view of the above and for the reasons stated above, it is concluded as under: i) that in case of search under Section 132 or requisition under Section 132A, the AO assumes the jurisdiction for block assessment under section 153A; ii) all pending assessments/rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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