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TMI Blog2024 (5) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... tely come to record a factual finding that the material which was gathered in that search had no co-relation with the respondent/ assessee. It is in the aforesaid basis that tested either on the anvil of belong / belongs to or pertains / pertain to , the view as ultimately expressed would not merit any interference. No substantial question of law. - HON'BLE MR. JUSTICE YASHWANT VARMA AND HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV For the Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC. For the Respondent Through: Mr. Gautam Jain, Mr. Shaantanu Jain Mr. Manish Yadav, Advs. ORDER 1. The Principal Commissioner of Income Tax impugns the order of the Income Tax Appellate Tribunal [ ITAT ] dated 02 August 2017 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat person? 2. The ITAT has while examining the validity of the action initiated in terms of Section 153C of the Income Tax Act, 1961 [ Act ] has observed as follows: 7. We have considered the rival submissions and perused the material on record. The satisfaction note which has been made the basis for initiating the proceedings under Section 153C of the Act as recorded by the ACIT, Central Circle, Dehradun who was the Assessing Officer of the searched person namely Batta group of cases reads as under: A search under section 132 was initiated in the case of Batta group of cases on 4.3.2009. The business premises covered u/s 132 is situated at 7-Saharanpur Road, Dehradun. During the course of examination of the seized material, it has been fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the sale deed is only Rs. 1,50,00,000/-. Thus an amount of Rs. 3,16,01,800/- has been paid by Shri Vinod Kapur on behalf of the company to Shri Ramesh Batta over and above the amount disclosed in the sale deed. Appropriate additions have been made in the case of the seller Smt. Kavita Ahuja, NRI through her agent Sh. Ramesh Batta in the relevant asstt. Year. The copy of receipt and the copy of registered sale deed have been signed by Shri Ramesh Batta, the attorney holder of Smt. Kavita Ahuja, the seller and Shri Vinod Kapur, Director M/s Divine Developwell Pvt. Ltd., H. No. B-52, Greater Kailash, Part-I, New Delhi in respect of the sale of the land at above mentioned Khasra and as such these documents belong to the company. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deed dated 30.10.2007 between the assessee company and Smt. Kavita Ahuja has been discharged in the following manner: (a) Cheque No. 37574 dated 8.9.2007 of Rs. 5,00,000/- (b) Cheque No. 82501 dated 24.09.2007 of Rs. 50,00,000/- (c) DD No. 264756 dated 29.10.2007 of Rs. 54,00,000/- (d) Cheque No. 660423 dated 30.10.2007 of Rs. 41,00,000 7.2 None of the aforesaid cheques find mentions in the agreement to sell entered between Shri Vinod Kapur and Smt. Kavita Ahuja. The only cheque stated in the agreement to sell is of Rs. 1,00,000/- by cheque no. 37569 dated 31.8.2007 which does not find mention in the sale deed. Thus, an unsigned agreement to sell having no name of the assessee company and neither shown in any manner linked with the sale de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act were initiated by the Assessing Officer on the basis of these documents without being satisfied that these documents belong to the appellant and contain the details of the income which is not disclosed to the Department by the such other person. The Assessing Officer placed reliance on the photocopy of unsigned agreement to sell dated 8th September 2007 between Ramesh Batta (Power of Attorney holder of Mrs. Kavita Ahuja) and Sh. Vinod Kapoor. The appellant company was incorporated on 28 th of February 2007 by Sh. Peyush Narain Gupta and Sh. Amit Kumar Aggarwal Sh. Vinod Kapoor was in no way connected with the company on 8th of September 2007. The documentary evidence adduced during the appellate proceedings makes it clear that Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ially different from the language used in section 158BD of the Act. As per section 158BD if any undisclosed income relates to other person, then action against such other person can be taken provided such undisclosed income is referable to the document seized during the search. However, section 153C of the Act says that if valuable or books of accounts or documents belonging to such other person are seized then the proceedings u/s 153C of the Act can be initiated against such other person. On the touchstone of the ratio laid down in the decisions of the Hon'ble ITAT, Hyderabad in the case of M/s Shouri Constructions and Hon'ble Gujarat High Court in Vijay Bhai N Chandrani Vs. ACIT reported in 333 ITR 436 discussed in earlier paras, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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