TaxTMI 
TaxTMI 
2021 (1) TMI 1275
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....ess premises of the assessee group. Another survey operation u/s 133A of the Act was conducted on the issue of pre-arranged bogus 'Long Term Capital Gain' and 'Short Term Capital Loss' on 15/09/2015 at the office premises of Vikram Group. Subsequently, notice u/s 153A of the Act, was issued on 15/12/2014 and served upon the assessee on 19/12/2014 asking for correct return of its total income in respect of which it is assessable for the Assessment Year 2012-13. In response to the notice u/s 153A of the Act, the assessee filed its return for the Assessment Year 2012-13 on 15/01/2015, declaring a loss of total income of Rs.30,44,646/-. Subsequently, notices u/s 143(2) & 142(1) of the Act, along with the questionnaire was issued on 09/02/2015 and the same were duly served upon the assessee. The Assessing Officer passed the assessment order u/s 143(3) of the Act, determining the total income of the assessee company at Rs.52,73,003/- interalia making additions and disallowances on the following issues:- a) disallowance u/s 14A of the Act. b) bogus unsecured loans. c) Commission on un-secured loans. 2.1. Aggrieved the assessee carried the matter in appeal without success. The ld....
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....reful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well as case law cited, we hold as follows:- 6. The Hon'ble Jurisdictional High Court in the case of Pr. CIT vs. Rashmi Infrastructure Pvt. Ltd. in ITAT 99 of 2019, G.A. No. 1211 of 2019 (Calcutta HC), judgment dt. 24/02/2020 has held as under:- "The question is whether the assessee had unexplained cash credit in their books which could be charged to income tax in the previous year in question ? We find on scrutiny of paragraphs 10 and 10.2 of the order of the tribunal that questions of fact and evidence were discussed and adjudicated upon by it. We set out paragraphs 10 and 10.2 of the impugned order of the tribunal is as follows : "10. Coming to the alleged cash trail, none of the material gathered by the Assessing Officer by way of bank account copies of various companies supposed to be part of the chain of companies was not confronted to the assessee. The alleged statements that were recorded from directors of these companies which formed this alleged chain were also not brought on record. Only a general statement has been made. The....
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....eal on ground no. 2 on merit." The tribunal is the final fact finding authority. A plausible adjudication on facts has been made. We cannot reopen the facts any more in this jurisdiction. No questions of law far less any substantial question of law is involved. 7. The Hon'ble Calcutta High Court in the case of CIT vs. Veerprabhu Marketing Ltd. reported in [2016] 73 taxmann.com 149 (Calcutta), held as follows:- "5. He relied upon the following views expressed in paragraph 50 of the judgment in the case of CIT v. IBC Knowledge Park (P.) Ltd. [2016] 69 taxmann.com 108 (Kar.):- "Materials such as books of account, documents or valuable assets found during a search should belong to a third party which would lead to an inference of undisclosed income of such third party. Such an inference should be recorded by the Assessing Officer having jurisdiction over the searched persons and communicated to the Assessing Officer having jurisdiction over such third party along with the seized documents and other incriminating materials on the basis of which the Assessing Officer having jurisdiction over such third party would issue notice under Section 153C. On receipt of the aforesaid mat....
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....gh Court in the case of Principal Commissioner of Income Tax vs. M/s. Salasar Stock Broking Ltd. in G.A. No. 1929 of 2016, ITAT No. 264 of 2016, judgment dt. 24th August, 2016, under identical circumstances, followed the judgment in the case of CIT vs. Veerprabhu Marketing Ltd. (supra) and dismissed the appeal of the revenue. 9. This Bench of the Tribunal in the case of ACIT vs. Majestic Commercial (P) Ltd. [2020] 116 taxmann.com 412 (Kolkata-Trib.), has held as follows:- "12. We find that the Hon'ble Delhi High Court while adudicating the appeal in the case of Kabul Chawla (supra) had judicial note of host of the earlier decisions in the cases of CIT v. Anil Kumar Bhatia [2012] 24 taxmann.com 98/211 Taxman 453/[2013] 352 ITR 493 (Delhi) ; CIT v. Chetan Das Lachman Das [2012] 25 taxmann.com 227/211 Taxman 61 (Delhi); Madugula Venu v. DIT [2013] 29 taxmann.com 200/215 Taxman 298 (Delhi); Canara Housing Development Co. v. Dy. CIT [2014] 49 taxmann.com 98 (Kar.) ; Filatex India Ltd. v. CIT [2014] 49 taxmann.com 465/[2015] 229 Taxman 555 (Delhi); Jai Steel (India) v. Asstt. CIT [2013] 36 taxmann.com 523/219 Taxman 223 (Delhi); CIT v. Murli Agro Products Ltd. [2014] 49 taxmann.co....
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.... but the learned Tribunal deleted those disallowances.' In that view of the matter, we are unable to admit the appeal. The appeal is, therefore, dismissed.' 14. In his written and oral submissions, the ld. CIT, DR relied on several judgments of the Hon'ble High Courts justifying addition made in the order u/s 153A for the AY 2011-12 which on the date of search did not abate. After careful perusal of each judgment relied upon by the Ld. CIT, DR in his submissions but having regard to the specific facts involved in the assessee's case, we find that none of the judgments advance the revenue's case since the factual and legal matrix of the present case is distinguishable. For the following reasons therefore, we find that the Revenue's case is not furthered by the judgments relied upon by the Ld. CIT, DR. (A) In the case of Sunny Jacob Jewellers and Wedding Centre v. Dy. CIT [2014] 48 taxmann.com 347/362 ITR 664 (Ker.), the facts were that the assessee firm conducted business of manufacture and sale of gold jewellery from six business concerns. In the course of search evidence was found that the assessee would make actual sales by issue of estimate slips....
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....ditional income was not given by her. She had categorically mentioned that she did not have her own source of income and that she was a proprietor of a concern only on paper. On these facts the Hon'ble High Court held that it was not in dispute that in course of search, incriminating material in relation to out of books turnover was found and with reference thereto the statement of the assessee's son was recorded in which he had admitted of earning undisclosed income. In the circumstances when the assessee was the owner of the proprietary concern which was carrying on the business, the Court upheld the Revenue's action of making addition on account of profits from such undisclosed business transactions. We however find that in the present case neither the assessee nor any of its directors have admitted of earning any undisclosed income nor in the impugned order the AO has brought on record any tangible incriminating material which was found in the course of search with reference to which the addition made can be justified. For these reasons therefore the judgment of the Hon'ble Delhi High Court is not applicable. (C) In the case of B Kishore Kumar v. Dy. CIT [201....
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....ceedings were simultaneously conducted against the so-called entry operator Shri Anand Sharma nor any documentary evidence supporting assessee's transactions with any of the entry operators was found from the assessee's premises during the course of search. We therefore find that the facts of the present case were materially different from the facts before the Hon'ble Apex Court in the case of S. Ajit Kumar (supra) and in that view of the matter the said judgment does not have any application. (E) As regards the ld. CIT, DR's reliance on the judgment of the Hon'ble Allahabad High Court in the case of Raj Kumar Arora v. CIT [2014] 52 taxmann.com 172/367 ITR 517, we find that in the said judgment, the Hon'ble High Court simply followed the judgment of the Hon'ble Delhi High Court in the case of Anil Kumar Bhatia (supra). The decision of the Hon'ble Delhi High Court in that case was however subsequently distinguished by the same Court in its later judgment in the case of Kabul Chawla (supra). The judicial principles to be applied in the matter of framing of assessments u/s 153A for unabated years have been elaborately laid down in the said later judg....