2025 (8) TMI 1691

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....the same assessee and are involving common issue, therefore these are being clubbed and decided together for the sake of convenience and brevity. We take the lead case as ITA No. 2685/KOL/2024 for A.Y. 2015-16 and the facts are extracted under. 3. The only issue raised by the assessee in the grounds of appeal is against the order of ld. CIT (A) confirming the order of ld. AO passed under Section 271(1)(c) of the Act confirming the penalty of Rs.47,90,999/- by wrongly invoking the explanation 5A to Section 271(1)(c) of the Act. 4. The facts in brief are that the search and seizure action under Section 132 was conducted against Health Care Group on 05-02-2021.The assessee was the key person of the group and was also covered in the search. T....

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....ehalf of ESKAG group, which was retracted subsequently by way of an affidavit dated 18-02-2021. However, while filing the return in response to Notice under Section 153A of the Act, the assessee disclosed Rs. 1,40,00,000/- over and above the income disclosed in the regular return of income. We note that the retraction affidavit was also duly accepted by the ld. AO. We also note that the additional income of Rs. 1,40,00,000/- was not the result of discovery of any incriminating material during search or any material brought on record by the ld. AO during the assessment proceedings. The assessment was completed under Section 153A/ 143(3) of the Act, vide order dated 19-03-2022, accepting the returned income under Section 153A of the Act. Ther....

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.... A perusal of the above explanation reveals that where the assessee found to be the owner of any money, billion or jewelry or other valuable article or thing and the assessee claimed that such assets have been acquired by him by utilizing (wholly or in part) his income for any previous year or any income based on any entry in any books of account or other documents or transactions and he claimed that such entry in the books of account or other account or other documents or transactions represented his income for any previous year, which has ended before the date of search and where the return of income for such previous year has been furnished before the said date of search but such income has not been declared therein, or the due date for ....

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....e created during the search as the statement was recorded at the time of search. Therefore, it cannot be said that the statement was 'seized during the search and thus, would not qualify the expression "document" having been seized during the search. In such a scenario, proper course of action was reassessment under section 147 read with section 148 of the Act. has held that that statement could not be construed as material found during the course of search operations for the purpose of Chapter XIV-B." Thus, the statement of the assessee cannot be said to be an incriminating material found during the course of search. Moreover, the same was retracted and the retraction affidavit was accepted as such by the learned AO." 6.2. Moreover,....