TaxTMI 
TaxTMI 
2019 (7) TMI 873
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....lidated order. For the sake of convenience, we would take ITA No.109/PUN/2014 as the lead case. ITA No.109/PUN/2014 A.Y. 2003-04 3. The Ld. AR of the assessee has raised legal grounds as well as grounds on merits. In the legal ground, the assessee has challenged the re-assessment proceedings u/s.147/148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). In view of the provision of Section 153C(1)(b) of the Act, it is contended by the assessee that the Assessing Officer instead of resorting to the re-assessment proceedings, should have conducted the proceedings as per Section 153C(1)(b) of the Act. Therefore, in the present circumstances, the reassessment proceedings undertaken u/s.147/148 of the Act is bad in law and shou....
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.... "56. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We have also considered the various decisions cited before us. There is no dispute to the fact that in the instant case the search took place in the residential and business premises of the Chhoriya group on 22-08-2008 during which certain books of account marked as Annexure B item Nos. 1 to 4 were seized. These are rough cash books of the Chhoriya group which contain various entries according to which the various lenders had advanced various amounts during the impugned assessment year. The entries in the rough cash books on one hand reflected the receipt of mon....
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....sons money, bullion, jewellery, books of account or documents are required to be found from the premises of the searched person. 56.3 However, in the instant case as mentioned earlier, no money, bullion, jewellery or other valuable article or thing or books of account or documents belonging to the assessee has been found or seized from the residence/business premises of the Chhoriyas. Only diaries belonging to Chhoriyas containing entries in the name of different persons including that of the assessee were found. It is only the entries relating to assessee recorded in the books of account of Chhoriya were the basis on which the assessment has been completed in the case of Shri Ratanlal C. Bafna. In our opinion the entries in the books of ....
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.... reference to the order of Assessing Officer wherein it is mentioned on record that "the assessee was informed about reasons as well as details of the permission given by the JCIT, Range-1, Jalgaon as per letter dated 28.09.2010. The assesee vide his letter dated 11.10.2010 requested for supply of copy of letter from JCIT, Range-1, Jalgaon under which permission was granted to issue notice u/s.148. The Assessing Officer vide his letter dated 26.10.2010 informed to assessee about the satisfaction made by the JCIT, Range-1, Jalgaon, on the proposal submitted by this office. The assesee vide his letter dated 01.11.2010 requested to inspect the seized documents found from the premises of Shri Kanhaiyalal D. Chhoriya. The Assessing Officer vide....
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....fore the Assessing Officer or before the Ld. CIT(Appeals). The Ld. AR of the assessee fairly conceded that they had not made any prayer before the Revenue Authorities for cross examination since it is a legal ground, the assessee is taking this ground for the first time before the Tribunal. We have also observed from the facts on records that sufficient opportunity to cross examine the seized materials were provided by the Assessing Officer but the assessee was not present for such inspection of these documents neither even at a later date he submitted any further request for such examination of the documents. The assessee has never prayed for cross examination. The decisions of the Hon"ble Supreme Court relied on by the Ld. AR are substant....
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....itted that these are the grounds on merits. The Ld. AR further submitted that whatever entries were found in the diary recovered during the course of search u/s.132 of the Act from the premises of Chhoriya are not concerned to the assessee. In respect of income of all those entries, Mr. Chhoriya has claimed and declared before the Department that they are income of the Chhoriya Group itself and it has got nothing to do with the assessee. The Ld. AR further submitted that Mr. Chhoriya had also filed an affidavit stating no loans were taken from the assessee. Therefore, the Ld. AR prayed that no additions should be made in the hands of the assessee. 12. Per contra, the Ld. DR placed strong reliance on the orders of the Sub-ordinate Authorit....