TaxTMI 
TaxTMI 
2024 (12) TMI 862
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....e upholding the assumption of jurisdiction the learned Commissioner of Income Tax (Appeals) has failed to appreciate that since no money, bullion jewellery or other valuable article or thing or books of accounts or documents belonging to the appellant were seized as a result of search on M/s Jindal Bullion Ltd., notice issued u/s 153C of the Act was illegal, invalid and unsustainable. 1.3 That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in upholding the assumption of jurisdiction despite the fact that in absence of any valid satisfaction having been recorded both in the case of searched person and, the appellant action u/s 153C of the Act was in excess of jurisdiction. 1.4 That the learned Commissioner of Income Tax (Appeals) has also failed to appreciate that documents as seized from the searched person are disclosed documents of appellant and are not incriminating documents and as such, could not otherwise be made a basis in law or on fact to initiate proceedings under section 153C of the Act. 1.5 That the learned Commissioner of Income Tax (Appeals) has also erred both in law and on facts in failing to appreciate that notice ....
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.... the case are that the assessee a proprietor of M/s. Rishabh Trading Company, had filed its original return declaring total income of INR 5,16,920/- on 25.09.2016. He is running retail trading business of bullion. Subsequently, a search and seizure operation was conducted u/s 132 of the Act on M/s. Jindal Bullion Ltd. ("JBL") Group on 05.01.2017. During the course of search, digital data maintained in a software called Hazir Johri, was seized from the premises of the promoter and Director of JBL. The analysis of the said software data revealed cash transactions with several entities, mostly bullion traders and jewellers. The data contained both cash transactions as well as transactions through banking channels. Only the transactions through banking channels were reflected in the Tally books of account of JBL on the basis of which returns had been filed by JBL. On deciphering the said data, it was found that ledger accounts 'Anuj-Shamli & Shyamli' pertained to the assessee wherein both the cash and banking transactions were recorded. Statements of Sh. Parul Ahluwalia, Director, Ms. Ekta Soni, Executive Assistant were also recorded during the course of search. On receipt of this info....
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....ssessee relied upon on the decision of the Co-ordinate Bench in the case of other assessee connected to the JBL Group wherein additions made under similar facts and circumstances have been deleted. Some of the decisions relied upon by the Ld.AR of the assessee are as under:- [i] Anoop Kumar Soni vs DCIT in ITA No.1641, 1642 & 1643/Del/2021 [Assessment Year 2015-16, 2016-17 & 2017-18] order dated 02.08.2023; and [ii] Surender Kumar Jain vs ACIT in ITA No.1314 & 1315/Del/2023 [Assessment Year 2016-17 & 2017-18] order dated 07.03.2024. 8. In all these cases in similar circumstances, entries found in the digital data seized during the course of search on the premises at the JBL Group were utilized to make the additions. However, all these cases were set aside by the Co-ordinate Benches mainly on the ground that neither the documentary evidences relied upon was provided to the assessees concerned nor any opportunity to cross-examine the concerned directors/employees of JBL was given, based on whose statements the proceedings had been initiated. 9. On the other hand, Ld.CIT DR for the Revenue strongly relied on the order of the lower authorities. She also pointed out that the asses....
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....taken place in the absence of any corroborative evidence such as bills, invoices, challans etc. There is no inkling in the order of the Ld. AO/CIT(A) that the alleged cash transactions are substantiated by any supporting evidence as claimed by the assessee. On the contrary, the impugned additions are based purely on conjectures and surmises solely relying on the statement of Ms. Parul Ahluwalia, Director and former employee of M/s. JBL, the entity subjected to search operation during which her statement was recorded. The Ld. AR submitted before us that Ms. Parul Ahluwalia nowhere in her statement identified that alleged cash transactions related to the assessee. No specific questions in this regard were asked from her. Nothing is forthcoming from the side of the Revenue to controvert the above pleadings of the assessee. 9.1 It was asserted by the assessee before the Ld. AO that the assessee was not even cross examined during search operation of M/s. JBL or during post search enquiry/investigation either by the Intelligence Wing or by the Ld. AO. The Revenue is silent on this aspect of the assessee's assertion. 9.2 It is observed that during the course of assessment proceedings ....