TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 665
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....cumentary, before the Ld. CIT(A) other than the evidence produced during the proceedings before the Assessing Officer except the circumstances mentioned in the aforesaid rule." 3. On the facts and circumstances of the case and in law, whether Ld. CIT(A) is justified in allowing the appeal of the assessee on the basis of additional evidences filed during appellate proceedings by disregarding the fact that ample opportunities were provided during assessment proceedings. 4. On the facts and circumstances of the case and in law, whether the Ld. CIT(A) was justified in deleting the addition made by the Assessing Officer under section 56(2)(vii)(a) of the Act amounting to Rs. 7,85,55,233/-, considering that the assessee had submitted only confirmation letter regarding the transfer of shares but failed to provide the share transfer form and proof of payment of stamp duty. In the absence of the share transfer form and proof of payment, how did the Ld. CIT(A) determine that the shares were purchased prior to the applicability of section 56(2) read with section 1IUA of the Act." 5. On the facts and circumstances of the case and in law, whether the Id. CIT(A) erred in not considering th....
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.... considering the submissions and the facts emanating from the records, the ld. CIT(A) admitted the additional evidence by giving a categorical finding that the assessee was prevented by reasonable cause from producing these documents before the OA and on analysis of the evidence, the ld. CIT(A) found that the impugned shares have been received by the assessee before 01/06/2010 which has been confirmed by the AO in his report. Therefore, the provisions of Section 56(2)(viia) of the Act are not applicable. Addressing the additional ground, the ld. CIT(A) observed that no incriminating material regarding the purchase of shares by the assessee was found during the course of search and there is no documentary evidence found during the search which indicate that the assessee has paid in cash for acquiring these shares below the fair-market price and deleted the addition. 5. We have given a thoughtful consideration to the orders of the authorities below qua the grounds of appeal taken by the revenue. We find that on identical set of facts, in assessee's own case, the Co-ordinate Bench in I.T.A. No. 824 to 827/Mum/2025 & C.O. No. 69 to 72/Mum/2025 for Assessment Years 2012-13 to 2015-16, ....
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....ere is no incriminating material found and seized from the premises of the assessee to trigger the proceedings u/s 153A of the Act in respect of unabated years covered in the block period. Assessment for AY 2012-13 was completed on 30/09/2014, for AY 2013-14 on 31/03/2016, AY 2014-15 on 22/11/2016 and AY 2015-16, the time limit to issue notice u/s 143(2) of the Act expired on 30/09/2016 and no assessment proceedings were initiated u/s 143(3) of the Act. Thus, it is clear that the assessment years are unabated and, therefore, the ratio laid down by the Hon'ble Supreme Court in the case of Abhisar Buildwell Pvt. Ltd. [454 ITR 212] squarely applies, wherein the Hon'ble Supreme Court has held as under:- "On a plain reading of section 153A of the Income-tax Act, 1961, it is evident that once a search or requisition is made, a mandate is cast upon the Assessing Officer to issue notice under section 153 of the Act to the person, requiring him to furnish the return of income in respect of each assessment year falling within the six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made, and assess ....
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.... or section 148 of the Act, subject to fulfilment of the conditions mentioned in those sections, as in such a situation, the Department cannot be left with no remedy. If, even in a case of search where no incriminating material is found during the course of search, and the assessment is unabated or completed, the Assessing Officer were to assess or reassess the income or total income taking into consideration the other material, there would be two assessment orders, which shall not be permissible under the law. The second proviso to section 153A and sub-section (2) of section 153A would then be redundant. Rewriting provisions is not permissible under the law. Thus in a case of search under section 132 or requisition under section 132A, the Assessing Officer assumes jurisdiction for assessment under section 153A; all pending assessments or reassessments shall stand abated. In case any incriminating material is found or unearthed, even in case of unabated or completed assessments, the Assessing Officer would assume the jurisdiction to assess or reassess the "total income" taking into consideration the incriminating material unearthed during the search and the other material avail....
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.... 21. In the case of Kailashben Manharlal Chokshi us. CIT (2008) 220 CTR (Guj) 138 : (2008) 14 DTR (Guj) 257: 2008 SCC Online Guj 436, the Gujarat High Court held that the additions could not be made only on the basis of admissions made by the assessee, in the absence of any corroborative material. The relevant paragraph No. 26 of the said decision has been reproduced hereinbelow : "26. In view of what has been stated hereinabove we are of the view that this explanation seems to be more convincing, has not been considered by the authorities below and additions were made and/or confirmed merely on the basis of statement recorded under s. 132(4) of the Act. Despite the fact that the said statement was later on retracted no evidence has been led by the Revenue authority. We are, therefore, of the view that merely on the basis of admission the assessee could not have been subjected to such additions unless and until, some corroborative evidence is found in support of such admission. We are also of the view that from the statement recorded at such odd hours cannot be considered to be a voluntary statement, if it is subsequently retracted and necessary evidence is led contrary to such....
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....rant the AO the authority to make an assessment. 25. Also, the Supreme Court in the case of Principal CIT us. Abhisar Buildwell (P) Ltd. (2023) 332 CTR (SC) 385 : (2023) 225 DTR (SC) 105 : 2023 SCC Online SC 481, has clarified that in case no incriminating material is found during the search conducted under s. 132 of the Act, the AO will have no jurisdiction to make an assessment. The relevant paragraph is reproduced herein below : "36.4. In case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under s. 132. or requisition under s. 132A of the 1961 Act. However, the completed/unabated assessments can be reopened by the AO in exercise of powers under ss. 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned under ss. 147/148 of the Act and those powers are saved." (emphasis, italicized in print, supplied) 26. This Court in the case of C....