TaxTMI 
TaxTMI 
2022 (10) TMI 852
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....D/2019. 2. In short the facts are that the respondent/assessee firm is engaged in the business of real estate. Upon search and seizure operation conducted u/s 132 of the IT Act, 1961, the assessment order was passed on 28.12.2017 under section 153C r/w section 143(3) of the IT Act for A.Y. 2012-13 to 2015-16 and under section 143(3) of the IT Act for A.Y. 2016-17. 3. Being aggrieved by the order dtd. 28.12.2017 passed by the A.O., assessee preferred appeal before the CIT(A) who vide its order dated 8.2.2019 allowed appeal of assessee in part by holding that the assessee maintained its regular books of accounts supported by bills/vouchers and other record duly subjected to audit. 4. Against the order dtd. 8.2.2019, the Revenue as well as ....
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....d shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years referred to in sub-section (1) of section 153A : Provided that in case of such....
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....e has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A." "69B Where in any f....
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.... AO has made reclassification of income of the assessee simply relying to the provisions of section 69B. I find it necessary to quote the provisions of section 69B which states as under:- "69B. Where in any financial year the assessee has made investments or is found to be the owner of any bullion, jewellery or other valuable article, and the Assessing Officer finds that the amount expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded in this behalf in the books of account maintained by the assessee for any source of income, and the assessee offers no explanation about such excess amount or the explanation offered by him is not, in the opinion of the Assessing Off....
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....y shown in the books of account and the findings of the AO are arbitrary and not subjective and are also not based on relevant material. The AO ought to have stressed upon some independent and arbitrary material which could establish that the income offered by the appellant is not fully recorded in books of account. The only point which lies in the favour of the AO is that he has alleged that appellant failed to provide any satisfactory explanation regarding the investment. Appellant during the course of survey has disclosed additional income on account of construction material. 4.4.2 The AO in his assessment order has simply stated that the explanation offered by the assessee is not satisfactory, which cannot be any basis for reclassific....
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....applicable since it was not found in possession of any bullion, jewellery or other valuable article as stated u/s 69B of the Act. The Ld. Assessing Officer also did not specifically comment whether the additional income declared was a part of regular books of accounts or not more so when section 69B of the Act can be invoked only for income which is not fully disclosed in books of accounts and not in respect of income which is already incorporated in the books of accounts. In view of the detailed findings of the Ld. CIT(A) and reliance placed on the decision of the Hon'ble Jurisdictional Bench in the case of Mukesh Sangla HUF vs DCIT, we do not find any infirmity in the finding of Ld. CIT(A) and the same needs to be confirmed. In the result....