TaxTMI 
TaxTMI 
2016 (10) TMI 879
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....urisdiction and same are liable to be quashed. 3. In any case and without prejudice, the learned Assessing Officer had erred in making an addition or Rs. 75,12,096/- to income of the appellant on account of difference in stock and the learned Commissioner of Income tax (Appeals) has erred in confirming the same. On the facts and circumstances of the case and the law applicable, the addition as made/confirmed being erroneous is to be deleted. 4. The lower authorities have erred in holding that the claim of the appellant is neither reflected either in the books of account of the appellant not in the income ta returns filed by the lenders; The above conclusion is not correct on the facts of case. 5. On proper appreciation of explanation offered by the appellant, the addition as made and sustained is to be deleted. 6. In any case and without further prejudice, the inclusion of Income tax in the year and period being not right, the addition as made/sustained is to be deleted. 7. The appellant denies the liability to pay interest. The interest having been levied erroneously is to be deleted. 8. In view of the above and other grounds to be adduced at the time of heari....
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....nt for the period 01.04.2009 to 31.03.2010. The same is roughly reproduced in English as under; Parties had deposited 4603 grams of gold under Shri MP gold Deposit Scheme. This evidence proves that the entry relating to the MP Gold Deposit scheme was made for the first time in the books of account during FY 2009-10 pertaining to AY 2010-11. 2) It is seen from the stock statements filed alongwith the Form 3CD reports that the above entry is not part of the financial statements filed alongwith the returns of income for AY 2010-11 or earlier year. 3) The assessee claimed such entry of 4603 grams was under M.P. Gold deposit scheme in which gold was deposited from 26 persons who happen to be his relatives. There are no agreements with the alleged depositors of MP Gold Deposit Scheme. 4) The financial statements of the assessee such as Balance sheet were examined. It is found such deposits are no where reflected in the financial statements. 5) As per the claim of assessee, he has accepted the deposits from the said 26 persons. Then as per the accounting standards, same should be reflected as 'Liability' in the statements. But there is no such reflection in the a....
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....ds to be assessed. Hence, please put up notices u/s 153C for A.Y. 2006-07 to 2012-13 As regards merits of the addition, the CIT(A) confirmed the addition. 4. Being aggrieved, assessee is before us in the present appeal. 4.1 Learned AR of the assessee submitted that the original notice u/s 153A dated 01/10/2013 was issued to the assessee. However, the assessment came to be completed u/s 143(3) r.w.s. 153C of the Act. He further submitted that the notice u/s 143(2) issued against original return of income, not against return filed in response to notice issued u/s 153C of the Act. He further contended that no satisfaction as required u/s 153C was recorded by the AO. In support of this contention, he relied on the following decisions: * ACIT v. Global Estate (2013) 142 ITD 740(Agra)(Trib.) * Ingram Micro (India) Exports Pvt. Ltd. V. Dy. DIT (Mum.)(Trib.) ITA Nos.8133, 8137,8138,8136, 8135 & 8132/Mum/2010 Assessment years: 2002-03 to 2007-08 * V.K. Fiscal Services Pvt. Ltd. V. DCIT (Delhi)(Trib.) ITA nos. 5460.5461,5462,. 5463, 5464 AND 5465/Del/2012 AYs 2004-05 to 2009-10 * DSL Properties (P.) Ltd. V. Dy. CIT (2013) 60 SOT 88 (URO)(Delhi)(Trib.) * ACIT. v. Inlay....
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.... with validity of the notice u/s 153C of the Act. It is a matter of record that kartha of the assessee i.e. P.Gouthamchand had given a statement u/s 132(4) of the Act offering income of Rs. 80 lakhs in the hands of the present assessee. Veracity of the statement is not under challenge. Needless to mention that statement given in the course of search and seizure proceedings u/s 132(4) constitutes material or document sufficient to give rise to jurisdiction u/s 153C of the Act. Admittedly as there was no warrant of search against the appellant, provisions of the Act do no authorize the AO to issue notice u/s 153A of the Act. However, in this case, though the notice was issued u/s 153A of the Act, the assessee filed return in response to same and participated in the assessment proceedings. Thus, the assessee has participated in the assessment proceedings and filed certain details and explanation before the AO and the same was considered by the AO at the time of framing the assessment order. Therefore, it cannot be said that any prejudice is caused to the assessee by mere wrong provision of law in the notice issued to him. The Parliament has enacted section 292B to cover this kind of s....