2024 (6) TMI 799

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....61 (hereinafter referred to as the "Act"), dated 26.04.2021 for AYs 2013-14 and 2016-17 respectively. 2. Grounds raised by the revenue in AY 2013-14 are reproduced as under: "1. On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition to the tune of Rs. 2,00,00,000/- under the head of bogus share capital received from M/s Shri Sai Megha Alloys Ltd. by not considering the facts of the case. The statement recorded & disclosed of the assessee is to be treated as incriminating documents as well as thorough enquiries made for the purpose of addition in the assessment order. 2. On the facts and circumstances of the case, the Ld. CIT(A) erred in deleting the addition by accepting the retrac....

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....he case shall apply mutatis mutandis to the second appeal in ITA No. 72/GTY/2023. 4. Brief facts are that a search and seizure operation u/s. 132(1) was conducted on 08/03/2019 at the residential and business establishment of the assessee pertaining to the "Niraj Sharma Group" . Case of the assessee was covered u/s. 153A of the Act for which notices were issued and served on the assessee. In the course of assessment proceeding, Ld. AO in para 3 and 3.1 noted that- "3. While going through the accounts of the assessee, it revealed that assessee during the relevant assessment year under consideration engaged in the business of trading (other sector). During the course of assessment proceeding, the following issue cropped up: ....

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....recourse to the impugned assessment year was permissible to the AO only on the basis of incriminating material found or discovered during the course of search and which pertained to the year under consideration. Since nothing was found to this effect no addition is warranted as made by the AO. Ld. CIT(A) elaborately dealt with the contention raised by the assessee by referring to several judicial precedence and gave his observations and findings in favour of the assessee deleting the addition made by the Ld. AO. The said observations and findings given by the Ld. CIT(A) are reproduced as under : 5. In the course of hearing before us, Ld. DR supported the order of Ld. AO. We take note of the recent decision of the Hon'ble Supreme Court in....

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.... of Abhisar Buildwell Pvt. Ltd.(supra) applies squarely to the facts of the present case. The Hon'ble Supreme Court in para 14 in the above case has categorically held as follows :- 14. In view of the above and for the reasons stated above, it is concluded as under: (i) that in case of search under section 132 or requisition under section 132A, the AO assumes the jurisdiction for block assessment under section 153A; (ii) all pending assessments/reassessments shall stand abated; (iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess the 'total income' taking into consideration the incri....

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....the appeal vide ITA No. 71/GTY.2023 is dismissed. Since the identical issue is involved in the case of ITA No. 72/GTY/2023 for AY 2016-17 which is also an unabated year within the meaning of section 153A of the Act, our observations and findings given above applies mutatis mutandis and is also accordingly dismissed. 9. In the result, both the appeals of the revenue are dismissed as indicated above. Order pronounced in the open Court on 15. 01. 2024. ============= Document 1 Sl. No. FY in which funds received Name of the Investor 1 2012-13 Shree SaiMegha Alloys Ltd 2 2015-16 Mr. KaranzelKholie 2 3 3 2015-16 Share Application Money Invested in the Assessee Company (Rs.) 2,00,00,....