TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 520
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....the Act is bad in law and void ab initio as (i) the satisfaction note to initiate proceedings u/s 153C of the Act in the case of the assessee was recorded by the assessing officer of the person searched beyond reasonable time i.e. almost 15 months after passing the assessment order in the case of the person searched and (ii) then the satisfaction note to issue the notice u/s 153A of the Act to the assessee by taking recourse to section 153C of the Act was recorded almost two years after completion of the assessment u/s 153A of the Act in the case of the person searched. Thus, the assessment proceedings are bad in law and must be cancelled in view of the settled legal position on this count. 3.The authorities below erred in law and on facts in sing that the assessee did not make any compliance during the impugned assessment proceedings, whereas factually the assessee submitted detailed letters on 13/12/2021, 23/12/2021 and 24/12/2021 seeking information and challenging the impugned notices which were never replied by the AO. Thus, the impugned assessment order passed exparte is bad in law and must be quashed. 4. impugned assessment order passed ex-parte is bad in law and m....
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....of JBL as well as its transactions through banking channels. The transactions through banking channels are reflected in the Tally books of accounts of JBL whereas the cash transactions are not reflected in the same. The returns of income have been filed by JBL on the basis of books of accounts maintained on Tally software. The Ld. AO observed that ledger account was found with code name(s) "Titu" wherein some cash / bank transactions permitted to Sh. Virender Verma. On perusal of seized data, among others, the ledger account found with code "Titu" allegedly pertaining to assessee was found. The AO of the searched person has recorded the satisfaction on 19-03-2021 u/s 153C of the Act against the assessee that assessee has made some cash/bank transaction mentioned in ledger namely 'Titu' belonged to the assessee Sh. Virender Verma. Accordingly, notice u/s 153C of the Act was issued to the assessee. In the response no return of income was filed by the assessee. Again, notice u/s 142(1) of the Act along with questionnaire were issued. The assessee did not comply with questionnaire and show cause notice. The, AO assessed the income of the assessee u/s 144 of the Act and made the additio....
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....DR relied on the orders of the lower authorities and stated that the Hazi Johri Software, the accounting data of which was seized during the search on JBL was full fledge database which was prepared to record the banking transactions as well the unaccounted cash transactions. He further contented that the person belonging to JBL in their statement recorded under section 132(4) of the Act during the search admitted that accounted and unaccounted cash entries were recorded in the Hazi Johri Software pertaining to the assessee. The said statements were never retracted by the said persons. 8. We find that the coordinate bench of this tribunal in the case of Sachin vs Deputy Commissioner of Income Tax in ITA No. 2613 & 2614 /Del/ 2022 relying the decision of Anoop Kumar Soni vs. DCIT. In ITA No. 1641/Del/2021 held that while adjudicating almost similar facts related to search on JBL, the Tribunal held that since the ledger found during the search "AP" contains the entries of parties other than assessee, then said ledger cannot be said to be belonging to assessee and addition made on the basis of assumption was deleted. The relevant observations made by the Tribunal in this regard are a....
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....he case, we hold that no addition is warranted in the case of the assessee. In the result, the peak credit theory set out by the id. CIT(A) would also become infructuous. The appeals of the assessee on this ground are allowed and accordingly the appeals of the revenue are liable to be dismissed." 15. Similar view was taken by this Tribunal in the case of Surender Kumar Jain in ITA No. 1314/Del/2023 dated 07.03.2024 2024-TIOL- 442-ITAT-DEL arising out of search in the JBL, wherein it was held that entries in the Hajir Johri ledger of M/s. JBL, supposedly involving M/s. S.K. Impex, do not prove actual transactions without corroborative evidence such as bills or invoices. The additions are based on conjecture and the statement of Mr. Parul Ahluwalia lacking supporting evidence was deleted. The relevant findings of the said decision are as under: "9. We have given our careful thought to the submission of the parties and perused the records. The facts are not in dispute. During assessment proceedings the common plea of the assessee in both the AY(s) was that merely entries found in the Hajir Johri ledger of M/s. JBL supposedly in the name of M/s. S.K. Impex, the proprietary concern ....