TaxTMI 
TaxTMI 
2025 (8) TMI 1041
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....ommissioner of Income Tax (Appeals)-3, Gurgaon [CIT(A)] dated 31-12-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 153A(1)(b) r.w.s. 143(3) of the Act on 26-09-2022. In the assessment order, Ld. AO has made addition of Rs. 12.50 Lacs which represent alleged diversion of funds from Gyan Jyoti Educational and Social Welfare Society (GJESWS). 2. The Ld. AR advanced arguments and relied on various judicial decisions to contend that in the absence of any incriminating material as found during the course of search action, impugned addition could not be made in the hands of the assessee. The Ld. AR stated that this year was unabated year. The Ld. CIT-DR, on the other hand, controverted the arguments of Ld. AR and ....
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....represented as Plot No.E-291, Phase-8A, Mohali having market value of Rs. 85 Lacs. The payment thereof was made by the assessee and his wife jointly. Upon examining the assessee's sources of investment in the said plot, it was observed by Ld. AO that trust funds of Rs. 27 Lacs were utilized by the assessee during FYs 2014-15, 2015-16 & 2018-19 for investment in this property as under: - No. FY Amount (Rs.) 1. 2014-15 Rs. 12.50 Lacs 2. 2015-16 Rs. 5.00 Lacs 3. 2018-19 Rs. 9.50 Lacs Total Rs. 27.00 Lacs Accordingly, the assessee was show caused. 3.3 The assessee contended that it had opening unsecured loans of Rs. 55,49,961/- as on 01-04-2014 with M/s GJESWS and all the payments as rec....
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.... A. Kumar & Co. (CA) certifying net worth of the assessee as on 28-10-2019. The same do not narrate any fact of diversion of trust fund to the assessee to make such investments. The same also do not contain any entry indicating unaccounted money / investment by the assessee. This being so, this documents could not be treated as incriminating documents vis-à-vis the assessee so as to make conclusion of diversion of trust money by the assessee. Whatever conclusion has been made by Ld. AO, the same are on the basis of post search enquiries only and that too, merely on the basis of financial statements and tax returns. Therefore, the said information / documents could not be treated as incriminating documents so as to enable jurisdiction....
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....d during the course of search under Section 132 or requisition under Section 132A of the Act, 1961. However, the completed/unabated assessments can be re-opened by the AO in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned under sections 147/148 of the Act and those powers are saved. The question involved in the present set of appeals and review petition is answered accordingly in terms of the above and the appeals and review petition preferred by the Revenue are hereby dismissed. No costs. Approving the decision of Hon'ble Delhi High Court in the case of Kabul Chawla (380 ITR 573) as well as the decision of Hon'ble Gujarat High Court in Saumya Construction (P.) Ltd. (38....
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....tions have necessarily to be based on incriminating material found during the course of search. The coordinate bench of Ahmadabad Tribunal in the case of ACIT vs. Real Marketing Pvt. Ltd. (ITSS No.128-133/Ahd/2021), relying upon the decision of Hon'ble Gujarat High Court in the case of Soumya Construction (387 ITR 529), confirmed quashing of assessment u/s 153A on the ground that there was no seized material in the case of the assessee. The Ld. AR also referred to various other judicial decisions including the decision of Hon'ble High Court of Delhi in the case of PCIT vs. Anand Kumar Jain (HUF) (ITA No.23/2021 dated 12-02-2021); the decision in PCIT vs. Best Infrastructure (India) (P.) Ltd. (397 ITR 82); the decision in CIT vs. Harjeev Agg....