2024 (2) TMI 1199

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....rounds both on jurisdictional issue as well as on merits, however, at the very outset we proceed to decide the jurisdictional issue raised in ground No.1, as it goes to the root of the matter. 3. In ground No.1 the assessee has challenged the validity of assumption of jurisdiction u/s. 153C of the Act and has further challenged the additions on the ground that they are not based on any incriminating material. 4. Briefly, the facts are, based on a search and seizure operation conducted u/s. 132 of the Act in case of third parties proceeding u/s. 153C were initiated in case of the assessee. Ultimately, the Assessing Officer (AO) completed the assessment u/s. 153C r.w.s. 143 (3) of the Act making the following additions:- Total income....

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....the AO has recorded his common satisfaction note for all the assessment years and has not identified the assessment year to which the seized material or the undisclosed income relates to. Thus, he submitted that based on such vague satisfaction note proceedings u/s. 153C of the Act could not have been initiated. In support of such contention he relied upon the decision of the Hon'ble Supreme Court in the case of Singhad Technical Society 397 ITR 344. 7. Without prejudice, he submitted that none of the additions made in the assessment order are with reference to any incriminating / seized material as referred in the satisfaction note. Again drawing our attention to the satisfaction note, he submitted, the only incriminating material which....

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.... PAN ASPPD0889B Under Section 153C of the Act A search & seizure operation u/s 132 of the IT Act 1961 was carried out in the case of Maccons, Meenu & Yadav Singh Group of cases. During the search proceedings, it transpired that Shri Yadav Singh and his family members are associated with Golf View Hotel. On analysis of financial result of the company M/s Golf Link Hospitality Pvt. Ltd. it is found that the company was incorporated during the F.Y. 2009-10 in which Smt. Vidya Devi and Sh. Devender Gaggal were shareholders. Later on, during the F.Y. 2010-11, fresh share capital has been introduced in the company at securities premium. Further, unsecured loans amounting to Rs. 1,09,62,682/- and share application mon....

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....ed back unaccounted money of Sh. Yadav Singh in the form of share capital, share application money and unsecured loans. The company M/s Golf Link Hospitality Pvt. Ltd. has raised share application money of Rs. 11 lacs during F.Y. 2009.10 from the assessee Smt. Vidya Devi. During the course of search operation, Incriminating documents were found and seized in Party No. EW-7 Page No. 19-35 of Annexure- LP-1. From the perusal, it was seen that Vidya Devi is one of the trustee of PGP Charitable Trust which is found to be engaged in non charitable activities and during the year, receive donation of Rs. 5,63,71,763/-, which is required to be examined in the view of section 11&12 of the 1.T act 1961. During the post sear....

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....gs u/s 153C of IT Act for proper deep investigation and to plug the la revenue. 10. On careful reading of satisfaction note it becomes very much clear that only incriminating material referred there-in is " Party No. EW-7 Page No.19-35 of Annexure -LP-1". 11. As demonstrated before us by learned Counsel for the assessee, the said incriminating material is the trust deed of PGP charitable trust, wherein, assessee is one of the trustees. Except the aforesaid document, the AO has not referred to any other seized material in the satisfaction note. Admittedly, in the assessment order the AO has not made any addition with reference to seized material annexure -LP-1. In fact, said seized material does not disclose any unaccounted/ undisclose....