2011 (6) TMI 902

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....r on the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in annulling the assessment. 2. Whether on the facts and in the circumstances of the case, the CIT(A) 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. 3. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in relying on the impugned orders of the ITAT." 3. The ld. CIT(A) has annulled the assessment framed u/s 153 C of the Income Tax Act. While doing so, it has been held that the documents seized did not belong to the assessee and so, the AO was not justified in initiating action u/s 153A read....

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....53C of the Act categorically envisages that it is only where the AO is satisfied with any books of account seized belonged to a person other than a person referred to in section 153A, though the books of account seized shall be handed over to the AO having jurisdiction over such other person and that the AO shall proceed against such other person and issue such other person notice and assess or reassess the income of such other person in accordance with the provisions of section 153A; that the books of account seized during the search in the case of B.M. Gupta group of cases do not belong to the assessee; that the entries in the seized material do not amount to "books of account"; and that therefore, the ld. CIT(A) has correctly a....

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....e about which the AO needs to be satisfied as belonging to a person other than a person referred to in section 153A. In the present case, undisputedly, the books of account were not of the assessee. Action u/s 153C of the Act can be taken in respect of any person other than the one mentioned in section 153A, only if the books of account belonging to such other person are seized during the search. Now, the entries in the name of the assessee, as contained in the books of Shri B.M. Gupta cannot and do not amount to the books of account of the assessee. The Department has not brought anything on record to counter this position. In fact, the documents seized indicated the names of persons, including the assessee, who had given cash loans. 11. ....