TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 1012
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....ppellant. 2. In the facts and circumstances of the case and in law the Ld. CIT(A) has erred in confirming the action of the Learned Assessing Officer while not setting aside assessment order as was not allowed to cross examine of Mr. Viral K. Patel (key person of the developer) who prepared the alleged systematically maintained ledger account. 3. In the facts and circumstances of the case and in law the Ld. CIT(A) has erred in confirming the action of the Ld. A.O. while not considering the objection of the appellant as to when the satisfaction note was recorded by the Assessing Officer. 4. In the facts and circumstances of the case and in law the Ld. CIT(A) has erred in confirming the action of the Ld. A.O. while not allowing the cros....
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....ound. It was noticed that the assessee has paid cash on different dates aggregating to Rs. 48 lacs. Out of such cash payment, an amount of Rs. 17 lacs was paid on 04/08/2012 falling in the previous year relevant to the assessment year under dispute. Based on such information, the Assessing Officer initiated proceeding u/s 153C of the Act in respect of the assessee. In course of assessment proceedings, the Assessing Officer confronted the seized document and called upon the assessee to explain as to why the cash payment made of Rs. 17 lacs towards purchase of flat should not be treated as income of the assessee u/s 69 of the Act. In reply, though the assessee flatly denied of having made any cash payment over and above the cheque payments, h....
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....s no evidence on record that a satisfaction was recorded either by the Assessing Officer of the searched person or the Assessing Officer of the assessee as mandated u/s 153C of the Act. He submitted, despite the assessee taking a specific objection both before the Assessing Officer and learned first appellate authority regarding non recording of satisfaction u/s 153C of the Act, the Departmental Authorities have cleverly skirted the issue. Drawing my attention to the assessment order dated 29/12/2021 passed in the case of the assessee for assessment year 2014-15, the learned counsel submitted, the Assessing Officer has stated that satisfaction was recorded by him on 06/03/2018. He submitted, when the search & seizure operation itself took p....
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....urt) (iii) Canyon Financial Services Ltd. vs. ITO [2017] 399 ITR 202 / 249 Taxman 493/155 DTR 73 (Delhi High Court) (iv) Canyon Financial Services Ltd. vs. ITO 399 ITR 202 (Delhi High Court) 5. Learned Departmental Representative strongly relied upon the observations of the Assessing Officer and learned first appellate authority. 6. I have considered rival submissions in the light of the decisions relied upon and perused the materials on record. At the outset, I proceed to address the grounds raised on merits of the addition made. Undisputedly, based on certain incriminating material found in course of a search & seizure operation in case of a third party, the Assessing Officer has made the disputed addition. It is evident, the incrim....
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.... seized from a third party are genuine and correct. Surprisingly, no statement has been recorded from the third party from whom the incriminating material was seized with regard to the entries in the ledger copy. There is nothing on record to suggest that the third party from whom the ledger copy was seized admitted of having received the cash payment from the assessee. This is so because neither the Assessing Officer nor learned CIT(A) have referred to any such statement or admission by Shri Viral K. Patel with reference to the seized material. Even, assessee's repeated request to cross examine Shri Viral K. Patal have been cold shouldered by the Department Authorities. Thus, as facts on record stand, except the ledger account stated to ha....