TaxTMI 
TaxTMI 
2025 (6) TMI 789
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....ng the settled position of the law that where the assessment of the assessee has been made on the basis of any material found during the course of search of other person, then assessment of the assessee shall be completed by following the procedure prescribed under section 153C of the Act and not under section 153A of the Act and therefore, the impugned assessment order passed by the AO under section 254 r.w.s. 153A/143(3) is invalid and liable to be quashed." 3. This additional ground goes to the root of the matter and purely legal in nature and the facts relevant for its adjudication are already in record. Accordingly the same is hereby admitted and taken up first for adjudication. 4. We have heard the rival submissions and perused the materials available on record. The assessee is an individual and had filed his return of income for AY 2009-10 on 23.07.2009 declaring total income Rs. 31,93,010/-. A search and seizure operation u/s 132 of the Act on 10.02.2011 was conducted at the premises of the assessee being B- 1/118, Paschim Vihar, New Delhi, and B-1/238, Ground Floor, Paschim Vihar, New Delhi and Panchanama dated 11.02.2011 was drawn. A search and seizure was also cond....
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....f section 132(4A) of the Act will not be available if the documents were not found from the search conducted at the premises of the assessee. 5. In the set aside assessment proceedings, a questionnaire was issued to the assessee on 04.11.2019 along with notice u/s 142(1) of the Act. The assessee duly complied with the said notice by furnishing the requisite details. Summon was issued to the Principal Officer of Chawla Buildwell Pvt. Ltd on 09.12.2019. In response to the summons, Chawla Buildwell Pvt Ltd vide its reply which is reproduced in page 4 of the assessment order, furnished the requisite details. The ld AO on perusal of the reply dated 12.12.2019 filed by Chawla Buildwell Pvt Ltd (CBPL) concluded that the assessee purchased a property from CBPL and therefore conclusion could easily be drawn that the transaction recorded in the seized documents are in respect of property purchased by the assessee form CBPL. 6. It is not known from the reply of CBPL dated 12.12.2019 as to how the ld AO had concluded that the transactions recorded in the seized documents were in respect of property purchased by the assessee from CBPL. The name of CBPL has not been mentioned in the seized....
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....ccount of unexplained investment in the hands of the assessee u/s 69B of the Act. This action of the ld AO was upheld by the ld CIT(A). 8. Now the crucial question that arises for our consideration was whether the seized documents that was relied upon for making an addition towards unexplained investment was found from the premises during the course of search conducted at the premises of Micromax group, i.e. Micromax Informatics, Micromax Technology Pvt. Ltd, Micromax Media Pvt. Ltd, at 697 Udyog Vihar, Phase-V, Gurgaon Haryana. This fact is evident from the Panchanama of the said companies of Micromax group, placed on record by the ld AR. The assessee's search was conducted at B-1/118, 2nd floor, Paschim Vihar, New Delhi which is evident from the copy of Panchanama placed at pages 9 to 13 of the Paper Book. It is pertinent to not that that the panchanama drawn in the case of Micromax does not contain or include the name of assessee. Accordingly, it was rightly pleaded by the ld AR that if at all such search documents was to be used in the hands of the assessee, the right course could be initiation of separate proceedings on the assessee u/s 153C of the Act and the same cann....
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....mmodation entries to Anand Kumar Jain (HUF) and his family members through their Chartered Accountant. The assessing officer framed the assessment order detailing the modus operandi as to how the cash is provided to accommodation entry operator in lieu of allotment of shares of a private company. Thereafter when the matter was carried up in appeal before the CIT(A), the findings of AO were affirmed. However, in further appeal before the ITAT, the said findings were set aside vide the impugned order. 4. The Revenue is aggrieved with the aforesaid impugned order and has filed the present appeal under Section 260A of the Act, proposing the following questions of law: a. Whether the ITAT is justified in deleting the additions made on account of bogus long term capital gain on the ground that the evidences found during search at the premises of entry provider cannot be the basis for making additions in assessment completed u/S. 153A in the case of beneficiary ignoring the vital fact that there was a common search u/s 132 conducted on the same day in both the cases of the entry provider and the beneficiary? 5 ............................................ ....