TaxTMI 
TaxTMI 
2014 (10) TMI 216
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....e Ld. CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 35,08,525/- made by the Assessing Officer on account of unexplained purchase u/s. 69C of the I.T. Act, 1961 and in directing the Assessing Officer to consider only the addition of the peak of financial transactions. 2. That the Ld. CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 1,64,550/- made by the Assessing Officer by way of disallowance of 50% of expenses claimed and in directing the Assessing Officer to consider only the addition of the peak of financial transactions. 3. That the Ld. CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 98,000/- made by the Assessing Officer on account of increase in share capital u/s. 68 of the I.T. Act, 1961 and in directing the Assessing Officer to consider only the addition of the peak of financial transactions. 4. (a) The order of the Ld. CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any / all of the grounds of appeal before or during the course of the hearing of the appeal." 3. The grounds raised in the Assessee's Cross Objection read ....
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.... cannot be justified by any material on record and the same are highly excessive. 11. That the appellant craves the right to amend, append, delete any or all grounds of appeal." 4. Briefly stated the facts are that a search and seizure action u/s 132 of the I.T. Act, 1961 was carried out in the cases of Sh. BK Dhingra, Smt. Poonam Dhingra and M/s Madhusudan Buildcon Pvt. Ltd. on 20.10.2008 and during the course of search at their residential premises at F-6/5, Vasant Vihar, New Delhi certain documents belonging to the assessee were seized. On the basis of documents so found belonging to the assessee company, proceedings were initiated in the case of the assessee company u/s. 153C read with section 153A of the I.T. Act. The case initially centralized with the ACIT, Central Circle-17, New Delhi and subsequently transferred to Central Circle-21 by an order dated 19.10.2010 u/s. 127 of the I.T. Act, 1961. In response to notice u/s. 153C, the assessee filed a return for assessment year 2003-04 on 8.9.2010 declaring its income. Thereafter, notices u/s. 142(1)/143(2) dated 1.11.2010 alongwith the detailed questionnaire were issued and served upon the assessee fixing the case for 10.11.20....
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....submitted that the same has already been accounted for in the books of accounts by the assessee. He also draw our attention towards the decision dated 29.3.2012 of the Hon'ble Delhi High Court delivered in the case of SSP Aviation Ltd. vs. Deputy Commissioner of Income Tax [2012] 346 ITR 177 (Delhi) in support of its case. Ld. Counsel of the assessee also submitted that the view taken by the Hon'ble High Court is fortified by the Legislative amendment made by the Finance Act, 2014 in section 153C of the Income tax Act, 1961. Accordingly, Ld. Counsel of the assessee requested that the issues involve in the assessee's cross objections and in the Revenue's appeals may be set aside to the Assessing Officer to verify whether the seized documents mentioned in the Satisfaction Note dated 5.7.2010 relating to the assessee on which notice u/s. 153C has been issued to the assessee and if these documents namely the cheques have already been accounted for in the books of accounts of the assessee and are not relating to the period i.e. asstt. year 2003-04 to 2008-09, then the proceedings u/s. 153C may be cancelled, otherwise, the Assessing Officer may take action, as per law. 8. On the other h....
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....nted for. In support of this contention, he had relied upon the decision of Hon'ble Jurisdictional High Court in the case of SSP Aviation Ltd. - 346 ITR 177. At page 189 of the report in paragraph 17, their Lordships held as under:- "The section merely enables the Revenue authorities to investigate into the contents of the document seized, which belongs to a person other than the person searched so that it can be ascertained whether the transaction or the income embedded in the document has been accounted for in the case of the appropriate person. It is aimed at ensuring that income does not escape assessment in the hands of any other person merely because he has not been searched under section 132 of the Act. It is only a first step to the enquiry, which is to follow. The Assessing Officer who has searched the satisfaction that the document relates to a person other than the searched person can do nothing except to forward the document to the Assessing Officer having jurisdiction over the other person and thereafter it is for the Assessing Officer having jurisdiction over the other person to follow the procedure prescribed by section 153A in an attempt to ensure that the inco....