2024 (3) TMI 1412

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....w. Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2012-13. 2. In the captioned appeal, the assessee has raised several grounds and has inter alia challenged the action of the Revenue Authorities over the legitimacy of additions/disallowances made under Section 153A of the Act. We thus deem it expedient to dispose of the aforesaid preliminary ground as it strikes to the root of the matter. 3. Briefly stated, in the present case, a search action under Section 132 was conducted on the assessee on 12.11.2014. Consequently, notice under Section 153A of the Act was issued and proceedings under Section 153A were set in motion. An assessment order under Section 153A r.w. Section 143(3) was framed for the Assessment Year 20....

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....e ld. counsel further referred to the assessment order and submitted that the assessment order itself makes it clear that material was purportedly found in the course of search of other person and not in the case of the assessee. 6.2 On facts, the ld. counsel submitted that the addition of Rs. 20 Lakh is based on the allegation that Mr. Y.K. Gupta has received Rs. 20 Lakh in cash towards sale of property no. G-260, Khuskhera. Such transaction was stated to be noted in the document found from the office of Mr. Y.K. Gupta. Thus, in such backdrop, a valid proceeding for addition could be initiated if any, probably under the shelter of Section 153C in distinction to present proceedings under 153A which is confined to the documents ....

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....d examined the merit of legal contentions raised on behalf of the assessee and counter raised on behalf of the Revenue. 8.1 It is the case of the assessee that impugned additions/disallowances could not be made in the assessment proceedings framed under Section 153A of the Act de hors reference to any incriminating material found in the course of search in the hands of the assessee. It is further case of the assessee that neither panchnama drawn in the hands of the assessee nor the assessment order makes reference to any incriminating material unearthed from the possession or control of the assessee in relation to impugned additions. The foundation for making additions under Section 153A is thus absent in the present unabated assessment ....