TaxTMI 
TaxTMI 
2016 (10) TMI 160
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....acts in annulling the assessment made u/s 153C. ii. Whether on the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals) has erred in law and on facts by holding that the seized documents on the basis of which proceedings were initiated do not belong to the assessee. iii. Whether on the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Appeals) has erred in interpreting section 153A/153C of the IT Act. iv. The order of the Commissioner of Income Tax (Appeals) is erroneous and not tenable in law and on facts. v. 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....
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....of Income-tax (Appeals) came to the conclusion that in the circumstances, proceedings under section 153C of the Act were not justified and, hence, he annulled the assessment. Aggrieved, the Revenue is before us raising the grounds as reproduced above. 3. Addressing the grounds raised, the learned Commissioner of Income Tax (Departmental Representative) submitted that the connotation "documents belongs to" is a wide enough which include even the entries pertaining to the assessee and, therefore, the learned Commissioner of Income-tax (Appeals) was not justified in annulling the assessment. 4. On the other hand, learned Authorized Representative of the assessee, relying on the order of learned Commissioner of Income-tax (Appeals), submi....
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....ocuments /books of accounts seized from his residential and business premises as also seized from the residence of Shri Ram Avtar Singhal, Accountant of Shri Brij Mohan Gupta (Annexures A-5, A-50 & A-79 of party H-4), it has been noticed that there are entries (cash advanced on loans) in the names of the following persons: S. No. Name Asstt.Year Cash Amount Advanced Interest received Commission paid 1 Shri Rajeev Gupta 2000-01 21 2,16,000 2 Ms. Abha Gupta 2002-03 10 1,33,067 3 -do- 2003-04 25 88,967 4 Shri Sandeep Gupta 2000-01 70 1,72,703 5 -do- 2002-03 20 2,52,805 6 -do- 2004-05 5 95....
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....nd earned interest income thereon as indicated against the name of each persons. Notice u/s 153C of the I.T.Act, 1961 may issue for the block asstt. years 1999-2000 to 2004-05 in cases of above assessees." 6. The learned Commissioner of Income-tax (Appeals) has annulled the assessment with following observations: "3.4 Adverting back to the facts of the case, it is observed that search and seizure operations u/s 132 of the Act were undertaken on the business as well as residential premises of Sh Brij. Mohan Gupta and his Accountant Sh. Ram Avtar Singhal. During the course of the search operations, documents seized indicate the name of the persons who have given cash loans with dates, period of loan, interest and commissi....
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....en against such other person. In the instant case, the documents seized do not belong to the appellant and the Assessing Officer was not justified in initiating action u/s 153A r.w.s. 153C of the Act. It is, therefore, held that the proceedings initiated u/s 153C of the Act are not as per the law. The assessment made u/s 153A r.w.s. 153C of the Act cannot stand of its own and hence, the same is cancelled." 7. The assessee has submitted copy of the decision of the Tribunal in the case of Sh. Ankit Gupta, in ITA No. 37 to 40/Del/2010 and Smt. Abha Gupta in ITA No. 43 and 44/Del/2010. We find that the name of both Sh. Ankit Gupta and Smt. Abha Gupta are appearing in the satisfaction note along with the assessee, in whose name the entries we....