TaxTMI 
TaxTMI 
TaxTMI 
2025 (1) TMI 1588
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....tion of proceedings u/s 153C is void abinitio and consequently, the assessment as framed by the Assessing Officer deserves to be quashed. 2. a). Notwithstanding the above said ground of appeal, the Ld. CIT(A) has erred in sustaining addition of Rs. 2,73,48,404/- against the returned long term capital loss to the tune of Rs. 4,75,91,617/ - in the return of income. b). That while doing so, the Ld. CIT(A) has erred in adopting the 'circle rate' as on 01.04.2001 and adopting the indexing cost of acquisition to the 180 & 552-Chd-2024 - Rawalpindi Coop Cinema Society ltd., Ludhiana tune of Rs. 13,27,51,596/- and which should have been calculated on the basis of 'fair market value' of the land of the assessee as on 01.04.2001, as per the provisions of Income Tax Act as claimed in the computation of income and which finding has been given by the Hon'ble Chandigarh/ Amritsar Benches of the ITAT in certain cases. 3. That the Ld. CIT(A) has erred in not following the judgment of Jurisdictional Bench of the ITAT, wherein, it has been held that for determining the cost of acquisition for the purposes of calculation of long term capital gain, only 'fair market value....
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.... the Assessee: 8. At the outset it is submitted that no incriminating evidence / document was ever found at the time of search relating to the transaction of sale of land by the Assessee. 9. As no incriminating material was unearthed during the search in case of any of the assessee either from the assessee or from the third party and the assessments were under Section 153C of the Act, then the reopening of the case u/s 153C stands null and void and the same cannot be challenged. The only document which was found during the course of search was nothings of the estimations of expenses incurred by the assessee in the normal course of business and the same has been accounted for in its books of accounts. The AO has not specified any specific seized document and has only mentioned in a general way. 10. During the course of assessment proceedings, the details of the expenses found in the list seized during the search operation were filed by the assessee before the Assessing Officer along with the documentary evidence showing the expenses accounted for in the books of accounts. Hence, no incriminating material was found during search which pertains to the assessee. The. Assessing Of....
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.... been pleaded that assessment order dated 31.03.2022 has been passed u/s 153C of the Income Tax Act. This assessment ought to have been passed on the basis of incriminating material found during the course of search on a third person other than the Assessee and said incriminating material should have been transmitted to the Assessing Officer of the Assessee along with his satisfaction note demonstrating that income of the Assessee has escaped assessment. Ld. Counsel for the Assessee emphasized that Assessing Officer has not referred any material which was found during the course of search and transmitted by the Assessing Officer of the searched person. He has been vaguely referring that "during the course of search various incriminating material was found and seized". The above reference does not exhibit, what is the nature of this various incriminating material on the basis of whom addition could be made in the hands of the Assessee. Ld. Counsel for the Assessee further submitted that Assessee took a specific ground to this effect before the ld. CIT(A) but ld. CIT(A) has rejected this ground without recording any categorical finding. A reference to paragraph 5.2 of the impugned or....
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....for the sake of argument, it is accepted that there were incriminating material found in the case of the Assessee which lead to initiation of proceedings u/s 153C of the Act, but again it is a matter of fact that no adverse inference has ever been drawn by the Assessing Officer on account of any such alleged incriminating material. The only issue on account of addition is made by the Assessing Officer is issue of Long Term Capital gain / loss which was duly disclosed by the Assessee in the original return of income. It has been held by the different Hon'ble Courts that in case of Assessment Years, in which assessments have been completed, the addition, if any, can only be made based on incriminating material only. 10. The ld. DR relied on the order of the CIT(A). 11. We have considered the findings given by the Assessing Officer in the assessment order and the findings of the ld. CIT(A) in the appellate order. We have also considered the arguments made and written submissions filed by the Counsel of the Assessee before us. We have also heard the ld. DR, who relied on the order of the CIT(A). We find that the assessment has been framed u/s 153C, Pre-requisite of passing any or....
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....ng the stamp duty rates of year 2003 instead of year 2001 for calculating cost of acquisition for calculating of capital gain and thereby, ignoring the provisions of section 55(2)(b)(i) of the Income Tax Act, 1961. 3 The appellant craves leave so add. amend, modify, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of appeal. 14. Brief facts of the case, as submitted by the ld. Counsel for the Assessee has already been discussed above. During the proceedings before us, the ld. DR defended the assessment order passed by the Assessing Officer as well as the appellate order passed by the ld. CIT(A). the ld. DR argued that the CIT(A) has rightly held as under :- "In the assessment order, the Assessing Officer has clearly mentioned the fact that during search operation, various incriminating documents were found and seized from various business and residential premises of the group. Thus, the A.O. was right in initiating the proceedings u/s 153C and, therefore, the contention of the appellant in these grounds are dismissed." 15. In order to confirm the kind of incriminating document available with the A.O. on which the ass....