TaxTMI 
TaxTMI 
2024 (3) TMI 708
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....s erred in confirming the addition of Rs. 673918/- made by the AO ignoring the fact that the assessment framed u/s 153A is bad in law since the same is without mentioning DIN which is a mandatory requirement. 3. That the Ld. CIT(A) has erred in confirming the addition of Rs. 300000/- u/s 69A in respect of bank FDR without appreciating that the said FDR were made out of opening bank balance available with the assessee. 4. That the Ld. CIT(A) has erred in confirming the addition of Rs. 300000/- on account of investment in FDR without considering the submissions of the assessee that the said FDR was made during the FY 2011-12. 5. That without prejudice to the aforesaid, the Ld. CIT(A) has erred in making addition of Rs. 373918/- not appreciating that all the credits in bank are in respect of sales and as such, the addition has to be restricted to profit element @ 8% as per the provisions of section 44AD. 6. That the Ld. CIT(A) has erred in confirming the addition of Rs. 373918/- by not appreciating that the debits in the same bank account represent the amount expended for business purposes and as such, addition made u/s 69A is untenable. 7. That the ld. CIT(A) has erred in c....
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....eafter, a search was conducted at premises of assessee company wherein certain share certificates were found which showed that certain companies had invested in shares of assessee's group of companies including assessee - Further, based on statement of one third party, 'R' Assessing Officer held allotment of shares to investor companies as bogus and made addition under section 68 - Commissioner (Appeals) and Tribunal had given concurrent findings of fact that no incriminating material had been found during search and brought on record by Assessing Officer to sustain additions - High Court held that since lower authorities had given a concurrent findings of fact that no incriminating material had been brought on record by Assessing Officer and said parties had filed detailed replies in response to section 133(6) notices along with requisite details as required by Assessing Officer and moreover, investor companies had sufficient net worth to make investment in assessee's group of companies, said share certificates could not be treated as incriminating - High Court also held that since assessees were denied opportunity to cross-examine despite a specific request, said ....
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....re not based on any incriminating materials/paper seized during search operation and therefore, it deserved to be deleted - Held, yes [Para 5] [In favour of assessee] 6. Per contra, the Ld. CIT(DR) stands by the impugned order. However, he failed to rebut the contentions of the counsel. 7. We have heard the rival contention, perused the material on record, impugned order and case law cited before us. Its undisputed facts from the record, that nothing incriminating material was found during the course of search and that the additions made by Assessing Officer (In short "the AO") were not based on any incriminating materials/paper seized during search operation in ITA No. 282 and 283/Asr/2023 in respect of the assessment year 2013-14 and 2014-15. It is seen that the whole additions have been made on the basis of bank statement submitted in response to questionnaire issued by the AO. In our view, it is settled law that no addition can be made u/s 153A otherwise than on the basis of incriminating document. In view of the judgement of Apex Court in the case of Abhisar Buildwell Pvt Ltd. (Supra) in absence of incriminating material, Assessing Officer would not assume the jurisdiction t....
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....iled the return of income for the year under consideration by applying the provisions of section 44AD . 6. That the Ld. CIT(A) has erred in confirming the addition of Rs. 657790/- merely on the basis of suspicion, surmises and conjecture and without bringing on record any material to prove that the appellant was in receipt of any income other than business income. 7. That the appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off." 9. Apropos ground no. 3 in ITA No. 284/Asr/2023, the appellant challenged on the legal issue that the Assessment Order passed by Ld. AO u/s 153A dated 10.04.2021 and the impugned order passed by Ld. CIT(A) u/s 250(6) dated 10.05.2022 confirming the addition are bad in law in as much as while passing the impugned orders the material relied upon were found from the premises of M/S Golden Tulip Hospitality during search which could have been only imported in assessee's case as per procedure prescribed u/s 153C of the Act. 10. At the time of hearing, the Ld. Counsel reiterated the contention as raised in the ground that order passed by Ld. AO u/s 153A dated 10.04.2021 and that the impugned order pas....
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.... to proceed in terms of Section 153C of the Act by handing over the same to the AO who has jurisdiction over such person. Here, the assessment has been framed under section 153A on the basis of alleged incriminating material (being the statement recorded under 132(4) of the Act). As noted above, the Assessee had no opportunity to cross-examine the said witness, but that apart, the mandatory procedure under section 153C has not been followed. No perversity in the view taken by the ITAT. - Decided in favour of assessee. b) 2019 (3) TMI 1196 - ITAT DELHI - DEPUTY COMMISSIONER OF INCOME TAX, NEW DELHI VERSUS SMT. SHIVALI MAHAJAN, SMT. RINKU MAHAJAN, SHRI JATIN MAHAJAN, SHRI NITIN MAHAJAN, SMT. ANILA MAHAJAN, SHRI LALITMAHAJAN AND (VICE-VERSA)- Assessment u/s 153A - addition based on excel sheet found during the course of search and also the statement of assessee during the course of search - addition in the case of various family members as unexplained investment in the acquisition of space in Indirapuram Habitat Centre - Whether any material found in the search of any other person than the assessee in appeal can be considered in the assessment under Section 153A of the assessee? -....