9911796707
TMI Blog2024 (2) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... h document is invalid. Even, otherwise now it is fairly well settled that in case of unabated assessment no addition can be made in absence of incriminating material found during the search and seizure operation. As discussed earlier, the only incriminating material referred to in the satisfaction note is the trust deed of PGP charitable trust. Though, in the assessment order the AO has made a number of additions, however, none of them are with reference to the incriminating material referred to in the satisfaction note. Whereas, the additions are based on some other material. Thus, case of Abhisar Buildwell [ 2023 (4) TMI 1056 - SUPREME COURT] squarely applies to the facts of the present case. Therefore, considering the totality of facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions:- Total income as per return of income/ system Rs. 25,48,623/- Add : Addition / Disallowance on account of : 16,52,931 (1) Addition on account of capital gain ( As discussed in Para5) 6,00,000 (2) Addition on account of unexplained gift (As discussed in Para6) 8,78,038 (3) Addition on account of unexplained jewellery as discussed in para 7 1,20,00,000 (4) Addition on account of house hold expenses (para 8) 5,07,036 (5) Total income Or Say Rs. 63,06,628/- 5. Assessee challenged the assessment order both on jurisdictional issue as well as on merits. However, learned First Appellate Authority did not find merit in the submissions of the assessee hence, upheld the additions. 6. Before us, learned Counsel appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the AO are with reference to some other materials, which have not been referred to in the satisfaction note. Thus, he submitted, the additions have not been made with reference to any incriminating material. In support, he relied upon the decision of the Hon'ble Supreme court in the case of Abhisar Buildwell Private Limited 454 ITR 212 held and DCIT Vs. U. K. Paints (Overseas) Ltd. Civil Appeal No. 6634 of 2021. 8. The learned Departmental Representatives (DR) submitted that based on the satisfaction note the AO has assumed jurisdiction u/s. 153 C of the Act. He submitted that at the time of recording satisfaction the AO has to form a prima facie view that seized material belongs to the assessee. He submitted, the said condition stands s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admeasuring 533.43 sq. mtrs situated at 14/1, Ambedka Vihar, Chhalera Bangar, Sector-37, Noida for a total purchase consideration mounting to Rs. 64,10,000/- during the F.Y. 2009-10. The assessee company further claimed construction cost aggregating to Rs. 5.18 Cr. approx during the following years. F.Y. Particulars Amount (Rs.) Remarks 2009-10 Capital work-in progress 1,09,92,846/- Capitalized in next year 2010-11 Addition of fixed assets 3,82,45,105/- Capitalized 2011-12 Purchase of fresh land 57,85,020/- Capitalized Cost of development-Addition to fixed assets 89,15,516/- Capitalized Capital work in progress 1,65,02,046/- Not yet capitalized 2012-13 Addition to fixed assets 14,07,324/- Capitalized Capital Wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Smt. Kusumlata herself has accepted "that she often visits assessee's residence being family member/close relative and also discusses her financial planning with her husband being a widow", It is also seen from the bank statement of Smt. Vidya Devi that Sh. Mohan Rathi, the auditor of Sh. Yadav singh, Golf link hospitality Pvt. Ltd and Smt. Kusumlata has withdrawn huge cash from the account of Vidya Devi after search and seizure action. Therefore, it is established beyond doubt that Sh. Yadav singh and her family are associated with Hotel golf view through Smt. Vidya Devi. During the course of post search proceedings, the assessee vide summon has been asked to provide audited financial results of the company along with sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the search and seizure operation. As discussed earlier, the only incriminating material referred to in the satisfaction note is the trust deed of PGP charitable trust. Though, in the assessment order the AO has made a number of additions, however, none of them are with reference to the incriminating material referred to in the satisfaction note. Whereas, the additions are based on some other material. Thus, in our considered view, the ratio laid down by the Hon'ble supreme Court in the case of Abhisar Buildwell (supra) squarely applies to the facts of the present case. Therefore, considering the totality of facts and circumstances of the case, we hold that not only the assumption of jurisdiction u/s. 153C of the Act is invalid, but, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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