TaxTMI 
TaxTMI 
2025 (9) TMI 1198
X X X X Extracts X X X X
X X X X Extracts X X X X
....truction (P) Ltd? (b) Whether in the facts and circumstances of the case and in law, the learned ITAT is justified in dismissing the appeal of the Revenue in respect of addition of Rs. 6,65,00,000/- made on account of unaccounted cash credit u/s 68 of the Income tax Act and confirming the order of the CIT(A) in which it was observed that the addition was not based on any incriminating documents recovered or seized from the assessee despite the fact that that such accommodation entry in form of share Capital was arranged by the assessee from the Kolkata based entry providing companies, which was accepted by the directors of the entry providing companies before the Investigation Wing and based on incriminating data in the form of computer back-ups were found and seized during the course of search and the Assessing Officer has made a detailed analysis of the same and also correlated the same with the addition is made in the assessment order? (c) Whether in the facts and circumstances of the case and in law, the learned ITAT is justified in dismissing the appeal of the Revenue, by holding that any addition/disallowance during the assessment under section 153A has to b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dopting numerous methods and techniques by routing the same in the books of accounts in disguised form as loan or share capital. 7. The Assessing Officer on verification of the financial data of the group concerns of Sumeet Industries Ltd. noticed that Sumeet Group had received huge funds in shape of share capital with huge premium/share application money and certain companies of Sumit Group allotted share capital directly to Kolkata based paper companies with huge premium and within one year or less, shares of these such paper companies were bought back at par value or below par value. It was alleged by the Assessing Officer that the respondent assessee received share capital of Rs. 6,65,00,000/- from Kolkata based company who made investment in 665000 equity shares of face value of Rs.10/- each at a premium of Rs. 90/- per share in Financial Year 2008-2009 and such shares were transferred by Kolkatta based companies to the respondent assessee at a rate of Rs. 2/- per share but the respondent assessee could not prove the identity, creditworthiness and genuineness of the transactions of such companies and accordingly, show cause notice dated 28.08.2017 was issued to show cause a....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., the assessing officer made addition based on the unaccounted job work receipts and no any incriminating material was used by the assessing officer to make addition on account of share capital/share premium. The issue of share capital and share premium have already been examined by the assessing officer in the original assessment proceedings, therefore, since the Department has failed to demonstrate the incriminating material in the assessee's case under consideration. xxx 11. Thus, the judgment of the Jurisdictional Gujarat High Court in the case of Saumya Construction Pvt. Ltd (supra) clearly says that no addition should be made without the aid of incriminating material in case of unabated assessment. The ld CIT(A) observed that assessee filed regular return of income on 30.09.2009 for the year under consideration. On the date of search i.e. 19.02.2015, there was no assessment proceedings pending, which got abated. In the assessment order, there is no mention of any documentary evidence found or any oral evidence in the form of statement of anyone, which was made basis for the addition made by the assessing officer. Therefore, Id CIT(A) rightly noted that a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4(iii) of the decision of Hon'ble Apex Court in case of Principal Commissioner of Income Tax v. Abhisar Buildwell P. Ltd reported in (2023) 454 ITR 212 (SC) as incriminating material was found during the course of search regarding unaccounted job work which was routed back into the books of account by the respondent assessee by investment in bogus share capital. It was therefore, submitted that the appeal requires consideration on the proposed question of law. 13. Having considered the submissions made by learned Senior Standing Counsel Mr. Sanghani for the appellant Revenue and the concurrent findings of fact arrived at by CIT(Appeals) and Tribunal to the effect that there is no incriminating material available with the Assessing Officer as no assessment proceedings were pending during the course of search on 19.02.2015 for the year under consideration, no interference is required to be made in the impugned order. 14. We are of the opinion that the Tribunal has rightly applied the decision in case of Saumya Construction P. Ltd. (supra) to the facts of the case as it is concurrent finding of fact that no addition is required to be made without the aid of incriminating materia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion which is admittedly an unabated assessment as held by this Court in case of Saumya Construction P. Ltd.(supra) as under: "15. On a plain reading of section 153A of the Act, it is evident that the trigger point for exercise of powers thereunder is a search under section 132 or a requisition under section 132A of the Act. Once a search or requisition is made, a mandate is cast upon the Assessing Officer to issue notice under section 153A of the Act to the person, requiring him to furnish the return of income in respect of each assessment year falling within 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 or reassess the same. Since the assessment under section 153A of the Act is linked with search and requisition under sections 132 and 132A of the Act, it is evident that the object of the section is to bring to tax the undisclosed income which is found during the course of or pursuant to the search or requisition. However, instead of the earlier regime of block assessment whereby, it was only the undisclosed income of the block period that was assessed, secti....