9911796707
TMI Blog2024 (6) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... f this statement was to be construed as an incriminating material belonging to or pertaining to a person other than person searched (as referred to in Section 153A), then the only legal recourse available to the department was to proceed in terms of Section 153C of the Act by handing over the same to the AO who has jurisdiction over such person. Here, the assessment has been framed u/s 153A on the basis of alleged incriminating material (being the statement recorded under 132(4) of the Act). As noted above, the Assessee had no opportunity to cross-examine the said witness, but that apart, the mandatory procedure u/s 153C has not been followed. No perversity in the view taken by the ITAT. In the present case, assessment proceedings must be i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) has erred in enhancing the net profit rate of 6% on disclosed turnover reflected in the ITR and accepted by the AO. 3. The CIT(A) has erred in reducing the gross income declared under the head PGBP at Rs. 486163/- against Rs. 649217/-. 4. The Ld. CIT(A) has erred in not giving the benefit of contra entries and CC bank interest to determine the undisclosed income. 5. The Ld. CIT(A) has erred in confirming the addition of Rs. 1602829/- ignoring the fact that the credits in the saving account represent sale proceeds from bakery business and as such, the addition has to be restricted to profit element and entire sales cannot be added. 6. That the Ld. CIT(A) has erred in confirming the addition of Rs. 1602829/- without appreciating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he premises of the company M/s Golden Tulip Hospitality Pvt. ltd during search operation conducted u/s 132 of the Income Tax Act 1961. That assessment so framed is bad in law in as much as appropriate section is section 153C of the Income Tax Act 1961. 5. At the outset, the Ld. AR submitted that the assessment was framed u/s 153A on the basis of material seized from the premises of the company M/s Golden Tulip Hospitality Pvt. Ltd during search operation conducted u/s 132 of the Income Tax Act 1961 is bad in law in as much as appropriate section is section 153C of the Income Tax Act 1961. Since this is a legal ground of appeal, the permission may, please, be granted in view of the judgment of M/s National Thermal Plant Co. Ltd vs CIT as rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tedly, the Ld CIT(A) upholds the addition of Rs. 21,03,912/- without acknowledging the fact that the document relied upon by the Assessing Officer was discovered on the premises of M/S Golden Tulip Hospitality, which underwent a search under Section 132. Consequently, the assessment proceedings should have been initiated by the AO through a notice under Section 153C of the Income Tax Act. Further, the CIT(A) did not consider the vital fact that the searched premises from which the certificate being treated incriminating material was discovered do not belong to the assessee. 9. In the case of PCIT (CENTRAL) - 3 VERSUS ANAND KUMAR JAIN (HUF), SATISH DEV JAIN, SAJAN KUMAR JAIN [2021] (3) TMI 8 the Hon ble Delhi High Court held that the AO has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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