TaxTMI 
TaxTMI 
2024 (5) TMI 779
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....mption of jurisdiction under section 153C of the Act was incorrect and ld. ITAT /CIT( A) is justified in cancelling the assessments framed under section 153C read with section 153A of the Act? 2.2 Whether ld. ITAT/CIT(A). erred in law in holding that the documents based on which satisfaction was formed by the Assessing officer under section 153C of the Act did not belong to the assessee? 2.3 Whether ld. ITAT/CIT(A) erred in considering only the agreement to sale dated 08.09.2007 wherein the name of the assessee company did not appear but has failed to consider that the Assessing officer had formed his satisfaction also on the basis of copy off sale deed appearing at Pg. Nos. 1-78 of Annexure LP -157 of the seized material ....
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....Kavita Ahuja, NRI, w/o Shri Pushpendra Ahuja through Attorney Shri Ramesh Batta entered into an agreement to sell dated 8.9.2007 with M/s Divine Developwell Pvt. Ltd. B-52, Greater Kailash, Part-1, New Delhi through its director Shri Vinod Kapur for the sale of 1360 sq. mts. of land in Khasra No. 129-Kha at Mauja Jakhan, Pargana Parwa Doon, Rajpttr Road, Dehradun @ Rs. 35, 000/- per sq. yards. This copy of "Agreement to sell" is appearing in the annexure LP-143 pages 138 to 139 of the seized material. This agreement to sell is unsigned. But the correctness of its contents is further proved from another document appearing at page 137 of LP 143 which is a photo copy of receipt signed by the seller Shri Ramesh Batta as attorney of Smt. Kavita ....
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....fied that these seized documents belong to the above purchaser of the land who have paid a sum of Rs. 3,16,01,800/- in cash, over and above the amount mentioned in the registered documents. Accordingly, the case of the above mentioned company is covered under the provisions of section 153C of the Income Tax Act." 7.1 On perusal of the satisfaction note, it is noted that it has been held that an amount of Rs. 3,16,01,800/- has been paid by Vinod Kapur on behalf of the assessee to Shri Ramesh Batta over and above the amount disclosed in the sale deed. The aforesaid conclusion essentially is based on two documents seized during the course of search. First and foremost document is agreement to sell dated 8.9.2007. It has been stated in....
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.... shown in any manner linked with the sale deed entered into by the assessee company can be held to be belonging to the assessee company. The next document as referred in the satisfaction note is an undated signed by Shri Vinod Kapur and Shri Ramesh Batta. This receipt too is in respect of cheque no. 37569 dated 31.8.2007 of Rs. 1,00,000/- and cash of Rs. 4,00,000/- by Shri Vinod Kapur as an advance for the land. However, as stated above, none of these sums find mention in the sale deed executed by the assessee company for the purchase of land. Thus, even the said receipt cannot be said to be a basis assuming that such receipt belongs to the assessee company. It is pertinent to state here that even the receipt does not bear name of the asses....
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....ring the appellate proceedings makes it clear that Sh. Vinod Kapoor and Sh. Ravi Bahri because directors in the company after 15.10.2007 and on 8th of September 2007 Sh. Vinod Kapoor was not a Director in the appellant company. The document on the basis of which proceedings us/ 153C r.w.s. 153A of the Act have been initiated do not contain the name of the appellant company. 2.5 The term 'belonging to' implies something more than the idea of casual association. It involves notion of continuity and indicates more or less intimate connection with the person over a period of time. The expression belonging to the assessee connotes both the complete ownership and limited ownership of interest. Of course, belonging to is capable o....
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....i Vs. ACIT reported in 333 ITR 436 discussed in earlier paras, it is held that the documents seized during the search on 04.03.2009 do not belong to the appellant and the Assessing Officer was not justified in initiating the proceedings u/s 153C read with section 153A of the Act and as such, the proceedings initiated u/s 153C of the Act are not as per the law. The assessment made u/s 153C read with section 153A of the Act cannot stand of its own and hence, the same is cancelled." 3. According to Mr. Bhatia, learned counsel who appears in support of the appeal, the ITAT appears to have essentially proceeded on the basis that action could have been initiated under Section 153C of the Act only if the material gathered in the course of the s....