TaxTMI 
TaxTMI 
2018 (3) TMI 594
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....ved in the first and second floor of the same premises, namely, S-511, Greater Kailash Part-II. The assessee and that brother lived separately, but in the same building. Two panchnamas were drawn in the course of the searched premises listing out the material seized separately from both the premises. On 21.04.2010, a notice under Section 153A of the Act was issued and the assessee filed his return declaring a total income of Rs. 3,80,610/-. The Assessing Officer (AO) completed the assessment, at Rs. 1,94,62,172/- by adding amounts that were based upon documents seized from the premises of S.K. Gupta, from his residential and office premises at Daryaganj. The AO was of the opinion that in the overall facts and circumstances of the case, percentage of the income based on the statements made, were attributable to the income of the assessee. This amount included Rs. 1,97,30,929/- on account of undisclosed interest income made in the case of S.K. Gupta. A portion of the income was added to the assessee's income. An additional amount of Rs. 92,16,098/- on account of unaccounted expenditure on the marriage of the son and daughter of the assessee was made. 3. The assessee appealed ....
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.... in the assessee's paper book- I from pages 196 to 221, it is vivid that these consolidated balance sheets reflect the assets in the shape of bank balance, investment in properties in the names of various group members and companies relating to the present assessees i.e. Shri S.K. Gupta and Shri V.K. Gupta. We further observe that the debtors, stock, loans, advances and creditors of various group companies belonging to the present assessees and ' bank borrowings show that the loans have been taken in the names and Smt. Madhu Gupta wife of Shri S.K. Gupta and Smt. Veena Gupta wife of Shri V.K. Gupta. Therefore, the income arising on account of these assets cannot be exclusively attributed or held as belonging to late Shri Suraj Bhan Gupta only. The charging section 4 of the Income Tax Act provides that the tax is to be charged on the income of a person to the extent it belongs to him. In the present case, the income belongs to various individuals and group companies from the assets, investments, etc. which cannot be held as exclusively belonging to late Shri Suraj Bhan Gupta and the same belongs to various family members including the present assessees, their wives and child....
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....reasonable assumption that the incriminating documents seized from the possession and control of S.K. Gupta belonged to the assessee. 7. It is argued that in terms of Section 153C of the Act (as it existed upto 31.05.2015) the AO of S.K. Gupta had to record his "satisfaction" that the documents seized under Section 132 of the Act, from the possession and control of S.K. Gupta, belonged to the assessee, before they could have been handed over to the AO having jurisdiction over him. In terms of Section 153C of the Act the AO of the assessee could not have proceeded against him with respect to the said seized documents from the possession and control of Sh. S.K. Gupta, without the mandatory recording of the satisfaction and subsequent handing over the same by the AO of the searched person, i.e. Sh. Suresh Kumar Gupta. 8. It was also argued that the Tribunal's conclusion that when there is a search and seizure operation against two persons simultaneously then the material documents, etc. seized therefrom can be used validly against both the searched persons without taking the aid of Section 153C of the Act is contrary to law. Reliance is placed on the decision of the Su....
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....e was no necessity of issuing notice under Section 153C; the fact of the matter was that the search was a joint one, carried out in one continuous proceeding, even though at site both the assessee and his brother lived in separate apartments. 11. It was argued that the findings of the lower appellate authority are based upon an overall appreciation of the circumstances and cannot be called as findings of law. Whilst the incriminating material that led to the adding of assessee's income were found in the premises of S.K. Gupta, since the documents were recovered in the course of one search proceeding, there was no impediment to treat it as part of one composite search. That the assessee was issued notice under Section 153A is not in dispute. In the circumstances, the attribution of amount of interest was done correctly. It was stated that as far as the marriage expenditure of assessee's children is concerned, the addition made i.e. Rs. 92,16,098/-, was derived from the books of account seized from the assessee's premises. In fact, the assessee did not even urge this aspect and rather gave it up. Reasoning and Conclusions 12. The assessee's principal submission with ....