2024 (10) TMI 1660

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....ence facts are narrated from ITA No. 5596/Del/2015, for assessment year 2009-10. ITA No. 5596/Del/2015 for AY 2009-10 2. The facts of the case as emanating from records are briefly encapsuled as under: Search & seizure action u/s. 132 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') and survey operation u/s. 133A of the Act were carried out in the case of Aeren Group on 17.08.2011. In search & seizure and survey operations various residential and business premises of the Aeren Group were covered. The promoters of AEZ Group (Aeren Group) were purportedly involved in providing accommodation entry in the form of Long Term Capital Gain (LTCG) which is exempt u/s. 10(38) of the Act. The assessee was asked to furnish detai....

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....e ground that the addition has been merely on the basis of statement of appellate during the search. He further observed that addition is based on presumption and surmises by the AO and thus, is against the spirit of law. Against said finding of the CIT(A), Revenue is in appeal before the Tribunal. 5. Shri Rajeshwar Painuly, appearing on behalf of the assessee submitted at the outset that no incriminating document whatsoever was found during search. The assessment made u/s. 153A r.w.s. 143(3) of the Act is merely on the basis of statement without their being any collaborative material. This is a case of non abated assessment, it is a well settled law that without their being any incriminating material found during search, addition cannot....

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....n merely on the basis of statement of assessee. In the assessment order, the AO has not referred to any incriminating material found during the course of search. The only basis for making addition is the statement. Even before us, the ld. DR has failed to point out any incriminating material unearthed during search. The CIT(A) in the impugned order has recorded finding of fact that entire proof of purchase and sale of shares were found in books of account of the assessee and purchase and sale of shares has been executed through the de-mat account via proper banking channel. The assessee has paid Security Transaction Tax as well. Hence, addition is made on the basis of presumption and surmises. The Revenue has not been able to rebut the find....