2024 (2) TMI 458

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.... "1. Whether Commissioner of Income Tax (Appeals) erred in law and on facts in upholding the ground of the assessee that provision of section 153A of the Act could not be applied in a case where no material has been found as a result of search and since no evidence or material had been found on search the instant addition made was outside the scope of section 153A of the Act. 2. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs. 4,30,00,000/- made by the AO on account of unexplained cash credit u/s 68 of the I.T. Act. 3(a) The order of the CIT (Appeals) is erroneous and not tenable in law and on facts." 3. Brief facts of the case are that the assesse....

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....d rejected the same. Subsequently, notices u/s 143(2) and 142(1) alongwith a questionnaire were issued and served upon the assessee. In response to the same, the ARs of the assessee attended the proceedings from time to time and filed the requisite replies arid explanations. The Assessing Officer after examining the correctness of the assessee's declared income and after verifying the various claims made during the course of assessment proceedings, completed the assessment in terms of an order u/s 143(3)/153A dated 28.03.2013 at a total income of Rs. 4,30,00,000/- as against nil income declared wherein, the Assessing Officer made an addition of Rs. 4,30,00,000/- u/s 68 of the Act on account of unexplained cash credits. 3.1 The facts lead....

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....ng to the Assessing Officer, the Jain brothers and the companies managed and controlled by them were intimately related to the assessee and its group companies and were indulged in taking accommodation entries for routing their undisclosed income into their books of account in the grab of all sorts of entries i.e. share capital, share premium and unsecured loans etc. In view of these facts and the fact that the assessee failed to establish the identity and creditworthiness of the loan creditors i.e. the above mentioned companies and the genuineness of the loan transactions, the Assessing Officer treated the un-secured loans amounting to Rs. 4,30,00,000/- as unexplained cash credits in the books of account of the assessee and added the same ....

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....e find attached herewith synopsis of case law order of Delhi High Court in the case Chintels India Ltd. Vs DCIT, Circle -8, [2017] 84 taxmann.com 57 (Delhi). Herein, as per para 21 the Hon'ble Court has observed that once an assessee does not received a notice u/s 143(2) of the I.T. Act within the period stipulated then such an assessee can take it that returned filed by him has became final and no scrutiny proceedings are to be started in respect of the return. (means thereto if the period for issuance of notice is still available then the case will not be considered as completed assessment). 3. As per proviso to section 143(2) of the I.T. Act 1961 "provided that no notice under this subsection shall be served on the ....