TaxTMI 
TaxTMI 
2021 (11) TMI 533
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..... During the course of search, documents belonging to the assessee were found and seized. After recording satisfaction u/s 153C of the Act, the case of the assessee was taken up for assessment, and accordingly, notice u/s 153C of the Act was issued to the assessee on 05.02.2015. 5. During the course of scrutiny assessment proceedings, the assessee was asked to furnish details of all the parties in respect of which booking money was received and subsequently cancelled. The assessee was also asked to furnish complete details regarding cancelled bookings i.e., whether the amount was forfeited or refunded to the allottees. 6. The assessee filed detailed reply with names of the persons from whom booking money was received and later on, booking was cancelled. 7. The reply of the assessee is as under: "With reference to your questionnaire, we herewith submitting following details : 1. Name and address of parties in respect of booking money received which were later on cancelled as the parties were unable to complete the formalities and make balance payment demaanded by the company. The said booking money is refundable, however, the company 1is insisting the buye....
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.... 2,55,000 7 D-21SF Sonu Kumar R/ o Village jonapur, Mehrauli, Delhi 5,70,000 10-Jun-08 1,72,000 31-Aug-09 15-Jul-08 1,60,000 13-Nov-0 8 2,38,000 8 D-22GF Virender Singh R/ o Village Kot, Distt. 8,45,500 12 Jun-08 1,75,500 25 Jul-09 16-Sep-08 1,95,000 '31 Jan-09 4,75,000 9 D-23SF Jitender Singh R/ o Village Kusbak, Tebsil 10,75,000 17 Jun-08 2,05,500 25Jut-09 20-Nov-08 2,19,500 15-Feb-09 1,50,000 28-Feb-09 5,00,000 10 A-74FF Pawan Kumar R/....
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.... Kherti Nagar, Rajasthan 11,75,000 1 -Aug-08 2,50,000 31 -Mar-09 10-Sep-0 1,90,000 7-Jun-09 7,35,000 18 D-13 SF Surender R/ o Village Rehlpa, Gurgaon Haryana 7,70,000 10-Sep-08 1,90,000 25-Apr-0 9 27-Dec- 3,90,000 13-Jan- 1,90,000 19 D-17 SF Sanjay R/ o Village Madan Pur, 7,35,000 10-Sep-08 1,90,000 25-Apr-09 29-Sep- 2,10,000 1-Jan-09 3,35,000 20 D-15 SF Ram Kishan R/o Village Gothra, Kherti Nagar, Rajasthan 6,49,000 10-Sep-08 1,90,000 25-Apr-09 21-Sep-08 1,54,000 28-Dec- 3,05,000 ....
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....T as clarified in the Circular No. 24/2015 dt. 31.12.2015 wherein following the judgment of the Hon'ble Supreme Court in M/s Calcutta Knitwears in Civil Appeal No.3958 of 2014 dt. 12.03.2014 it has laid down that the judgment of the Hon'ble Supreme Court would apply to proceedings u/s 153C of the Act as well for the purpose of reassessment of the person other than the searched person and that even if the AO of the searched person and the "other person" is one and the same he is required to record his satisfaction in the case of the "other person". As mentioned herein above, in the case of the appellant no satisfaction was recorded. Therefore, in terms of the above mentioned decisions of the H'ble Delhi High Court, the notices u/s 153C of the Act could not have been issued for the assessment year under consideration, and therefore, the notice u/s 153C of the Act issued cannot be held to be legally valid and the reassessment u/s 153C of the Act in this assessment year is ab initio void and therefore the assessment is liable to be quashed. I hold accordingly." 11. As regards merits of the addition, the findings of the ld. CIT(A) read as under: "4.2 As regards merits of the....
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....ive of unaccounted transactions or concealment of income, and therefore the additions could not have been made in the reassessment u/s 153C of the Act in terms of judgments considered herein above." 12. Before us, the ld. DR strongly contended that the ld. CIT(A) himself has accepted that the document SCO-3 referred to at Para 4 of the satisfaction itself suggests that certain amount was received in cash against bookings which were later on cancelled. It is the say of the ld. DR that this document itself proves that it was incriminating material and, therefore, the findings of the ld. CIT(A) deserve to be reversed. 13. Referring to the list of 21 persons, the ld. DR pointed out that between the date of booking and the date of cancellation, there is a substantial gap and the assessee has not furnished any evidence to justify its claim that the bookings cancelled in this project have been used in some other project. 14. The ld. DR strongly supported the findings of the Assessing Officer. 15. Per contra, the ld. counsel for the assessee vehemently stated that assessment u/s 153C of the Act could be made only in respect of the issue in respect of which incriminating materia....