TaxTMI 
TaxTMI 
2018 (10) TMI 279
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....Rs. 1 crore, received as share application money from M/s RSM Metals Ltd. and M/s Octamac Software Private Ltd., being Rs. 50 lacs each, treating the same as unexplained. The CIT(Appeals) deleted the additions so made for the reason that no incriminating material was found during the course of search. The Ld.CIT(Appeals) held that at the time of search proceedings, assessments for the impugned year were not pending and had, therefore, not abated. He further found that no incriminating material or evidence was found and seized during the course of search, nor any addition made emanating out of the search proceedings. Therefore, relying on various judicial decisions, the Ld. CIT(Appeals) held that the impugned additions could not have been made in the facts of the present case in the order passed u/s 153A of the Act. The Ld. CIT(Appeals) relied upon the decision of the Coordinate Bench of the Tribunal in the case of M/s Mala Builders Pvt. Ltd. Vs. ACIT in ITA Nos.433 to 437/Chd/2017 ,wherein the Tribunal had further relied upon the decision of the Hon'ble Bombay High Court in the case of CIT Vs. M/s Murli Agro Products Pvt. Ltd. in ITA No.36 of 2009 and in the case of CIT Vs. Kab....
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....r layering through Shri Shaman Jindal, an employee of Steel Strips Group) respectively. These companies had received share capital including share premium from paper companies. 5. M/s RSM Metals Ltd. came into existence during the year with the employees of the group like Shri H.K. Sehgal, Bhagwan Dass Sharma, Sharman Jindal and Bhavnesh Gupta as directors. M/s Apoorva Leasing Finance Company Ltd. and M/s Sunita Securities Pvt. Ltd. purchased 4000 shares of the company at a premium of Rs. 499 per share. M/s Apoorva Leasing Finance Company Ltd. had shown its registered office as the address of Shri S.K. Jain, a known entry provider. A search was conducted on Shri S.K. Jain on 14.09.2010, wherein on the basis of incriminating documents found, it could be reasonably concluded that M/s Apoorva Leasing Finance Company was only a paper concern involved in providing accommodation entries in the form of share capital and share premium. 6. M/s Octomac Softwares Pvt. Ltd. also came into existence during the year with the employees of the group like Shri M.L. Jain, Shri B.D. Sharma and Bhavnesh Gupta as directors. This company had also introduced unaccounted money of Steel Strips Group ....
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....see for the succeeding year as referred by the Assessing Officer in the above letter. The Ld. DR stated that he had gone through all the documents relating to the inquiries made by the Assessing Officer during the assessment proceedings and found no reference to any document unearthed during search relating to the issue on which addition had been made & which was confronted to the assessee. At the same the Ld. DR agreed that though the issues stood covered by the order of the I.T.A.T. in the case of M/s Bharat Net Technology(supra), he relied on his submissions on the issue made in writing as under : "The search u/s 132 was conducted on the premises of M/s Steel Strips Group of Cases on 04.10.2012. Additions were made by the AO under the head Unexplained Credits u/s 68 of the Act. The CIT (A) has dealt with this issue at Paras 5 Pages 24 to 31 of his order. The case law M/s Mala Builders Pvt Ltd vs ACIT ITA No.433 to 437/Chad/2017 relied upon by the CIT (A) is on different footings i.e. related to section 24(b) of the Act. Moreover, the CIT(A) has failed to verify the contention of the Assessee that no incriminating documents have been found and seized during search. It was his d....
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.... 308 (Delhi)/[2017/ 245 Taxman 293 (Delhi)/[2017] 390 ITR 496 (Delhi)/[20161 290 CTR 361 (Delhi) (Though Stayed by the Apex Court) (PAGE NO.32 TO 44 OF ANNEXURE) where Hon'ble Delhi High Court held that Where inferences drawn in respect of undeclared income of assessee were premised on materials found as well as statements recorded by assessee's son in course of search operations and assessee had not been able to show as to how estimation made by Assessing Officer was arbitrary or unreasonable, additions so made by Assessing Officer by rejecting books of account was justified 6. CIT Vs Anil Kumar Bhatia (24 taxmann.com 98, 211 Taxman 453, 352 ITR (493) (Copy Enclosed) (PAGE NO.45 TO 56 OF ANNEXURE) Where Hon'ble Delhi High Court held that jurisdiction of AO under 153A is to assess total income for the year and not restricted to seized material. Post search reassessment in respect of all 6 years can be made even if original returns are already processed u/s 143(1)(a) - Assessing Officer has power u/s 153A to make assessment for all six years and compute total income of assessee, including undisclosed income, notwithstanding that returns for these years have alre....