TaxTMI 
TaxTMI 
2015 (3) TMI 397
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....Thus, the CIT(A) ought to have deleted the said addition considering the appellant's submission. 4. The CIT(A) ought to have given sufficient opportunity to the Appellant to furnish the details, the Appellant would have satisfied the same. The CIT(A) ought to have refrained from confirming the alleged addition. 5. The CIT(A) erred in confirming the levy of interest U/s 234B of the Act and same is arbitrary & excessive and same is liable to be cancelled or to be reduced substantially. 6. Without prejudice, the CIT(A) erred in confirming the addition is arbitrary, unreasonable and liable to be cancelled." 2. There was delay in filing the appeal and therefore an Affidavit was also filed for the condonation of delay of 19 days stating therein that the Assessee?s tax matters were handled by the Accountant of Shri B.P. Anandkumar Singh, that Shri B.P. Anandkumar Singh was put behind the bars on account of the mining scam and the staff was pre-occupied in attending the legal matters for getting Shri B.P. Anandkumar out from the prison and due to this, delay was caused. After hearing both the parties, we noted that the Assessee was prevented by sufficient cause to file the appe....
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....grounds are that the Assessee is engaged in business of plying/hiring carriages on routes allotted by Government of Karnataka. Search u/s 132 was carried out on 25.3.2008 in the group cases of B.P. Anandkumar Singh of Hospet. The AO was satisfied that certain documents seized belonged to the Assessee and accordingly, notice u/s 153C dt. 31.10.2008 was issued to the Assessee. In response thereto, the Assessee filed his return of income on 19.12.2008 declaring income of Rs. 17,336/- at which the original return was processed u/s 143(1). During the impugned assessment year the Assessee received Rs. 45 lacs gift by way of cheques of Rs. 5 lacs each from Hasim Mod Trading Est. of Dubai. Rs. 45 lacs was received on 7.4.2004. The AO required the Assessee to state her relation with the donor or any business connection with the said person. Vide letter dt. 23.10.2009 the Assessee confirmed that the said money was gift and the same was confirmed by the Donor vide his letter. The AO, as per para 5 of his order, took the view that the said gifts are not genuine by taking into account the circumstantial evidence and human probabilities with a finding that the Donor, an NRI having address at Del....
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....tment, 107 DTR (All) 217 (supra) in our opinion will not assist the Assessee. The issue involved in this case was whether recording of satisfaction is necessary before issuing notice u/s 153C in a case where the AO of both the persons i.e. the person searched and the third party in respect of whom documents were found are same and no handing over of the documents was required, whether recording of satisfaction is necessary. In the impugned case the question is whether any addition can be made in the assessment completed u/s 153C in respect of items which have already been considered in the original assessment and for which no incriminating material was found. The decision of the Hon'ble Supreme Court in the case of Manish Maheshwari vs. CIT, 289 ITR 341 (SC) also relate to recording of satisfaction but in the case of the Assessee no evidence about non-recording of satisfaction was placed before us. The decision in Ingram Micro (India) Exports Pvt. Ltd., (supra) also relates to the mandatory requirement of recording of satisfaction while in the case of the Assessee, no such material was brought to our knowledge that satisfaction was not recorded by the AO. Similar view has been ....
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....ay be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139; (b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made : Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this sub-section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate. (2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (....
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....t 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 and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A.? 12. In our opinion, the Assessing Officer assumed jurisdiction for framing the assessment u/s.153C of the Act where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisi....
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....ssessment u/s 153A will be made on the basis of incriminating material, which in the cont ext of relevant provisions means - (i) books of account, other documents, found in t he course of search but not produced in the course of original assessment, and; ( ii) undisclosed income or property discovered in the course of search?. 15. In view of the decision of Special Bench in the case of All Cargo Global Logistics Ltd(supra), no doubt the addition in the case of the assessee can be made by the Assessing Officer only on the basis of incriminating material found during the course of search but the AO got jurisdiction for initiating proceedings u/s.153c r.w. section 153A against the assessee in view of documents etc, belonging to the assessee are found in the case of the person in whose case search had taken place. Thus, this decision will help the assessee. 16. Similar view has been taken in the cases discussed as under: 17. We noted that Hon?ble Delhi High Court in the case of Chetandas Laxmandas, 254 CTR (Del) 392 has taken similar view. In para 11 of this judgement, the Hon?ble High Court held that "obviously an assessment has to be made under this section only on the basis....