TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 1217
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....action was conducted under section 132 on 11.01.2012 in case of M/s Mandhana Industries Ltd. A survey action was conducted under section 133A in case of M/s Golden Seam Textiles Pvt. Ltd. During the course of survey, a Red colour diary was seized vide Annexure A/GST/1 on 11.01.2012. The seized diary belonging to the assessee. In the diary certain cash entries consisting of Rs. 9 Lacs against the names of Radhika, Minal and Ritu and Rs. 6 Lacs against the names of Tej and Sudha was recorded. The statement of assessee was recorded under section 131 on 27.04.2012 wherein the assessee admitted the additional income of Rs. 15 Lacs, received on sale of residential property in Jaipur and the cash component was paid towards purchase of five residen....
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....ortunity of hearing. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the penalty of Rs. 5,09,850/- levied by the AO u/s 271(1)(c) despite the fact that the Ld. AO neither in the show cause notice nor in the assessment order specified under which charge he is contemplating to levy penalty. 2. We have heard the submission of ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the revenue and perused the material available on record. At the outset of hearing, the ld. AR of the assessee submits that he is not pressing the Ground No.1. Considering the submission of ld. AR of the assessee, Ground No.1 which relates to denial of reasonable o....
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....tries Ltd. Notice under section 153C was not valid against the assessee as no incriminating material was unearthed against the assessee in the search carried out on Mandhana Industries Ltd. Though the notice under section 153C was not valid against. The assessee has not challenged the validity of notice under section 153C and that return of income in response to notice under section 153C was filed due to ignorance. The ld. AR of the assessee further submits that the assessee neither furnished inaccurate particulars of income nor concealed any income. The assessee disclosed additional income of Rs. 15 lacks during the survey and offered the same while filing return of income. The Assessing Officer while passing the assessment order has not....
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....enged the validity of notice under section 153C by taking plea that the assessee was covered only on survey and no search action was carried out on the assessee or no incriminating material was found in the search conducted on the group. The ld DR prayed for dismissal of the appeal. 5. We have considered the submissions of both the representatives and perused the record. There is no dispute that a search was conducted on Mandhana Industries Ltd. And a survey on M/s Golden Seam Textiles Pvt. Ltd. Further, there is no dispute that in survey a diary was impounded, wherein certain incriminating evidence was found. Further, there is no dispute that the statements of assessee are recorded only under section 131 and the assessee offered additiona....
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....ing Officer without any variance. There is no evidence against the assessee which may suggest that the case of assessee was covered under section 132, except narration by assessing officer in the assessment order. Rather, the statements recorded by Investigating Team itself clearly suggest that the case of assessee was covered by survey action only. 7. The Assessing Officer while passing the assessment order invoked the provision of Explanation 5A of section 271(1)( c) specifically deals with the search initiated under section 132 and not for survey action under section 133A. 8. We have further noted that before passing the order, the Assessing Officer issued notice under section 274 r.w.s 271(1)(c) dated 27.03.2013 and again on 04.09.201....