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TMI Blog2023 (8) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... ramed was legally unsustainable. Thus we are of the considered view that the additions/disallowance, devoid of any incriminating material found during the course of search, cannot validate the assessment orders framed u/s 153C of the Act. Decided in favour of assessee. - Shri N.K. Billaiya, Accountant Member, And Shri Kul Bharat, Judicial Member For the Assessees : Shri Kapil Goel, Adv For the Department : Shri Sapna Bhatia, CIT-DR ORDER PER BENCH:- ITA No. 674/DEL/2021 to ITA No. 678/DEL/2021 are appeals of Zoom Developers SEZ [Indore] Pvt. Ltd preferred against the order of the ld. CIT(A) 26, New Delhi dated 07.02.2020 pertaining to A.Ys 2012-13 to 2016-17. 2. ITA No. 679/DEL/2021 to ITA No. 683/DEL/2021 are appeals of M/s Startle Constructions Pvt Ltd preferred against the order of the ld. CIT(A) 26, New Delhi dated 07.02.2020 pertaining to A.Ys 2012-13 to 2016-17. 3. ITA No. 688/DEL/2021 to ITA No. 692/DEL/2021 are appeals of Tyagi Portfolio Management Pvt. Ltd preferred against the order of the ld. CIT(A) 26, New Delhi dated 07.02.2020 pertaining to A.Ys 2012-13 to 2016-17. 4. ITA No. 693/DEL/2021 to ITA No. 697/DEL/2021 are appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Other Person i.e. the assessee reads as under: 12. Satisfaction Note in all the captioned appeals are identically worded though the name of the company, under the head Brief Description of Documents may be different with different quantity of shares and the amount thereof. 13. On the basis of the aforementioned satisfaction, the Assessing Officer initiated proceedings u/s 153C of the Act and completed proceedings by making addition on account of commission on accommodation entries on account of bogus purchases and bogus sales being 3% of the accommodation entries provided and further made disallowance on account of assumed expenditure which the assessee must have incurred in running its business of providing accommodation entries. 14. When the matter travelled before the ld. CIT(A), the ld. CIT(A) deleted the addition on account commission on accommodation entries and partly confirmed the disallowance of adhoc expenditure. 15. Satisfaction Note, which triggered the assessment proceedings u/s 153C of the Act, has already been exhibited elsewhere. A perusal of the same vis a vis the assessment completed by the Assessing Officer shows that what is noted in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of such other person, in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year ar years as referred to in sub-section (1) of section 153A except in cases where any assessment or reassessment has abated. (2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person referred to in section 153A of the said Act, then books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assessee or reassess income of such other person in accordance with the provisions of section 153A if he is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in subsection (1) of section 153A of the Income-tax Act. 45.3 Applicability:-This amendment takes effect from 1st October, 2014. 19. In light of the above, we are of the considered opinion that, even after the amendment, the Assessing Officer can proceed only on the basis of incriminating material which has a bearing on determination of the total income of such other person. Nowhere in the Satisfaction Note it has been mentioned that the said description of shares is related to alleged business of providing accommodation entries by the captio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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