TaxTMI 
TaxTMI 
2019 (6) TMI 988
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....ch which were not produced or not already disclosed. 3. The appellant crave, leave or reserves the right to amend modify, alter add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." The Revenue has also raised additional ground:- "Whether on the facts and in the circumstances of the case the CIT(A) was right in allowing the appeal of the assessee holding that in absence of any incriminating material, the completed assessment cannot interfered with by the AO while making assessment u/s 153A only on the basis of some incriminating material unearthed during the course of search which were not produced or not already disclosed." 2. The assessee company engaged in the business of manufacturing of textiles & home furnishing and trading in bullion. The assessee filed his return of income U/s 139(1) of the Act, on 30.09.2009 declaring total income of Rs. 51,03,870/-. The scrutiny assessment U/s 143(3) of the Act was completed on 23.12.2011 at the total income of Rs. 62,97,619/-. Thereafter a search and seizure action U/s 132 of the Act was carried out on 31.07.2012 in the case of Siyaram (katta) Group, Jaipur to whom the assessee belongs. Dur....
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.... of the Act at that point of time but due to the mandatory nature of the provisions of Section 153A of the Act the AO has proceeded in accordance with the provisions of law. The ld. DR has thus contended that even if the said material which was received by the Assessing Officer was not found and seized in the search and seizure action in case of the assessee however, the same was deducted in the other search and seizure action and therefore, the case would not fall in the category when the said material was already available with the AO at the time of passing of order U/s 143(3) of the Act. The ld. DR has thus contended that the ld. CIT(A) has followed the decision where the additions were made on the basis of the material which was available with the AO at the time of passing the assessment order U/s 143(3) of the Act. He has relied upon the order of the Assessing officer. 4. On the other hand, ld. AR of the assessee has submitted that the assessment was completed prior to the date of search and seizure action on 31.07.2012 and therefore the assessment was not pending as on the date of search. Since, the assessment was not pending on the date of search therefore, it has not got a....
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....53A of the Act would be considered as regular assessment proceeding not reassessment. In the case in hand, the Assessing Officer after initiation of proceeding U/s 153A received the information from Investigation Wing, Mumbai and based on the said information the AO has made the addition of Rs. 65 lacs on account of share application money by treating the same as unexplained of cash credit. The relevant finding of the AO in para 7 and 8 is as under:- "7. It was seen that, during the year under consideration, assessee had received share application money from M/s Ansh Marchandise Pvt. Ltd. (New. Planet Trading Co P. Ltd.) amounting to Rs. 65,00,000/-. Information was received in the case of Shri Praveen Jain Group is a leading entry provider of Mumbai. The group provides accommodation entries of share application money, bogus unsecured loans and advances through various benami concerns operated and managed by Praveen Jain and Others. A search and seizure action was carried out by the Investigation Wing, Mumbai on 01/10/2013. The search revealed various incriminating documentary evidences were seized. In addition, statements of various persons ( who assist Praveen Jain in providi....
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....arly explains the modus operandi of this bogus transactions. 8. In the present case, assessee has received Share Application Money of Rs. 65,00,000/-, from M/s Ansh Marchandise Pvt. Ltd. (New Planet Trading Co P. Ltd.), a benami concern of Shri Praveen Jain Group, and this party is only providing bogus accommodation Share Application Money, unsecured loans and advances for the reasons given in detail in the above para. Therefore, the Share Application Money from M/s Ansh Marchandise Pvt. Ltd. (New Planet Trading Co P. Ltd.) may be treated as unexplained cash credit u/s 68 of the I.T. Act, 1961. I hereby make an addition of Rs. 65,00,000/- to the declared income of the assessee u/s 68 of the I.T. Act, 1961. Penalty proceedings u/s 271(1)(c) of the IT Act, 1961 is initiated for concealment of income/for furnishing inaccurate particulars of income." The question before us is limited about the sustainability of the addition made by the AO based on the material which was received by him subsequent to the search and seizure action in the case of the assessee but gathered during the search and seizure action in case of the Shri Praveen Kumar Jain group. Though technically the AO ca....