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TMI Blog2023 (8) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... edger copy are through Kotak Bank and AXIS Bank. It is observed, from the stage of assessment proceedings itself the assessee has flatly denied its involvement in the transactions recorded in the ledger copy seized from the third party. The assessee has specifically submitted that the bank accounts mentioned in the ledger copy do not belong to him or his wife. It is the specific case of the assessee from the very beginning that he had purchased the flat for a consideration of Rs. 40 lacs and has paid it entirely through banking channel from his bank account held with State Bank of India and ICICI Bank and bank account standing in the name of his wife held with Bank of India. Surprisingly, no statement has been recorded from the third par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000.00 in the income of the appellant. 2. In the facts and circumstances of the case and in law the Ld. CIT(A) has erred in confirming the action of the Learned Assessing Officer while not setting aside assessment order as was not allowed to cross examine of Mr. Viral K. Patel (key person of the developer) who prepared the alleged systematically maintained ledger account. 3. In the facts and circumstances of the case and in law the Ld. CIT(A) has erred in confirming the action of the Ld. A.O. while not considering the objection of the appellant as to when the satisfaction note was recorded by the Assessing Officer. 4. In the facts and circumstances of the case and in law the Ld. CIT(A) has erred in confirming the action of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee towards purchase of a flat was found. It was noticed that the assessee has paid cash on different dates aggregating to Rs. 48 lacs. Out of such cash payment, an amount of Rs. 17 lacs was paid on 04/08/2012 falling in the previous year relevant to the assessment year under dispute. Based on such information, the Assessing Officer initiated proceeding u/s 153C of the Act in respect of the assessee. In course of assessment proceedings, the Assessing Officer confronted the seized document and called upon the assessee to explain as to why the cash payment made of Rs. 17 lacs towards purchase of flat should not be treated as income of the assessee u/s 69 of the Act. In reply, though the assessee flatly denied of having made any cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took place on 06/03/2018. He submitted, there is no evidence on record that a satisfaction was recorded either by the Assessing Officer of the searched person or the Assessing Officer of the assessee as mandated u/s 153C of the Act. He submitted, despite the assessee taking a specific objection both before the Assessing Officer and learned first appellate authority regarding non recording of satisfaction u/s 153C of the Act, the Departmental Authorities have cleverly skirted the issue. Drawing my attention to the assessment order dated 29/12/2021 passed in the case of the assessee for assessment year 2014-15, the learned counsel submitted, the Assessing Officer has stated that satisfaction was recorded by him on 06/03/2018. He submitted, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Officer Others 450 ITR 650 (Orissa High Court) (iii) Canyon Financial Services Ltd. vs. ITO [2017] 399 ITR 202 / 249 Taxman 493/155 DTR 73 (Delhi High Court) (iv) Canyon Financial Services Ltd. vs. ITO 399 ITR 202 (Delhi High Court) 5. Learned Departmental Representative strongly relied upon the observations of the Assessing Officer and learned first appellate authority. 6. I have considered rival submissions in the light of the decisions relied upon and perused the materials on record. At the outset, I proceed to address the grounds raised on merits of the addition made. Undisputedly, based on certain incriminating material found in course of a search seizure operation in case of a third party, the Assessing Officer h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record to establish that the entries in the ledger copy seized from a third party are genuine and correct. Surprisingly, no statement has been recorded from the third party from whom the incriminating material was seized with regard to the entries in the ledger copy. There is nothing on record to suggest that the third party from whom the ledger copy was seized admitted of having received the cash payment from the assessee. This is so because neither the Assessing Officer nor learned CIT(A) have referred to any such statement or admission by Shri Viral K. Patel with reference to the seized material. Even, assessee s repeated request to cross examine Shri Viral K. Patal have been cold shouldered by the Department Authorities. Thus, as fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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