TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 719
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....rcumstances of the case and in law the proceeding under s. 153A of the IT Act, 1961 is not legal and is void ab initio and the impugned assessment u/s.153A r/w.143(3) of the Incometax Act, 1961 is liable to be annulled as department has not carried out search operations over the assessee at its business place at Plot No. 25, Tulsi Villa, Purnavad Nagar, Nr. Akashwani Tower, Off Gangapur Road, Nashik 422 013. Therefore, it is prayed to annul the assessment order, passed u/s 153A in the case of appellant. 2. The learned CIT(A) erred in upholding the initiation of legally untenable proceedings u/s 153A and in issuing legally untenable Notice u/s 153A in absence of any incriminating material or unexplained asset found during search action at 7, Thakkers, Near Nehru Garden, Nashik 244 001. Therefore, it is prayed to annul the assessment order, passed u/s 153A in the case of appellant. 3. The learned CIT(A) erred in upholding the assessment made u/s 153A, in spite of the fact that, the assessment for AY. 2014-15 had attained finality, as on the date of search & no incriminating material or unexplained asset was found in the search conducted against appellant. Therefore, it is praye....
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....he provision of section 132(4A) incorporates the rule of evidence relating to material found during course of search. On plain reading of said provision, it is evident that it has application in the case of searched person, in whose hands the material was found and seized. The presumption envisaged under said provision cannot be extended to assessment of third party. The CBDT also recognized the principle that no addition can be made on mere statement made u/s 132(4) without bringing any corroborative evidence. The CBDT Circular reads as under :- "Admissions of undisclosed income under coercion/pressure during search/survey - Instances/ complaints of undue influence/coercion have come to notice of the CBDT that some assessees were coerced to admit undisclosed income during Searches/Surveys conducted by the Department. It is also seen that many such admissions are retracted in the subsequent proceedings since the same are not backed by credible evidence. Such actions defeat the very purpose of Search/Survey operations as they fail to bring the undisclosed income to tax in a sustainable manner leave alone levy of penalty or launching of prosecution. Further, such actions show t....
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....Counsel for the assessee further submitted that the amount involved also is same for this year also. The Ld. DR fairly conceded that the issue is covered in favour of the assessee. 6. In view of the above discussion, respectfully following the Tribunal's order in assessee's own case for the same parity of reasoning, we allow the appeal of the assessee. 7. In the result, appeal of the assessee in IT(SS)A No.64/PUN/2017 for the assessment year 2014-15 is allowed. IT(SS)A Nos. 70 & 72/ PUN/2017 ( By Revenue) Assessment Years : 2011-12 & 2013-14 8. The Ld. DR for the Revenue submitted at the outset that the appeals of Revenue are liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs. 20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs. 20 lakhs to Rs. 50 Lakhs. Thus, the ....
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....ng of addition made by the AO on the basis of his findings that the members of Kokani family involved in sale transaction of Savargaon land have received 50% consideration in cheque and 50% in cash showing unaccounted cash amount of Rs. 65,21,25,992/- which is including the amount of Rs. 11,94,19,700/- declared by the Kokani Group initially in the statement u/s 132(4) in the search action on the premises of Kokani Group. 3. Any other ground that may be urged at the time of hearing." 14. In IT(SS)A No.73/PUN/2017, the Revenue has raised following grounds of appeal : "1. On the facts and in the circumstances of the case and in law the Ld. CIT(A) has erred in deleting the addition of Rs. 10,06,60,053/ - made by the AO for A.Y.2014-15 in the case of the assessee without appreciating the facts that the addition made by the AO are based on the strong corroborative evidences in the form of the seized materials with logical and justifiable reasons to arrive at the addition of Rs. 10,06,60,053/ - pertaining to the assessee in the A.Y.2014-15 out of the total undisclosed cash transaction worked out at Rs. 65,21,25,992/- in respect of the land dealing of the Savargaon plots of land by Th....