TaxTMI 
TaxTMI 
2024 (5) TMI 1634
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....e first payment by cheque was made on 03.02.2014 and the final purchase deed was executed in FY 2018-19. But no evidence pointed out by AO to prove that the alleged cash payment was made during the previous year relevant to A.Y. 2012-13. 1.3 The observations made and conclusions reached by CIT (A) as per the impugned order are denied and unjustified both on facts & in law" 3. The brief facts of the case are that the assessee had filed his return of for AY 2012-13 on 04.01.2023 declaring total income of Rs. 3,63,300/-. Information was received by the AO that the assessee had made payment of Rs. 88,95,000/- for purchase/booking of Tower B/401 in Iscon Platinum developed by J.P. Iscon Group. A search and seizure in the case of J.P. Iscon Group was carried out wherein incriminating documents/materials were seized in respect of 'On money' received from various customers of the projects developed by J.P. Iscon Pvt. Ltd. and its group concern. On verification of seized documents/materials, it was found that various persons have advanced/paid cash for booking/purchase of Unit during the F.Y. 2011-12 relevant to the A.Y. 2012-13 and the assessee is one of the p....
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....ter on the assessing officer also sent notices us 142(1) and called the necessary information which was duly complied with and necessary details were served timely." The appellant in his submission could not put forth any details or explanation to substantiate the denial of payment of cash component of Rs. 28,72,000/- in the transaction for purchase of the flat in question. The appellant has just beaten round the bush about the payment made by cheque of Rs. 60,23,000/- but did not touch the issue on cash payment which has been substantiated by the cease materials found during the course of search and seizure operation u/s 132 conducted against the builder J. P. Iscon Group. The AO in his assessment order has lucidly marshaled the facts establishing the payment made by the appellant out of his undisclosed cash amounting to Rs. 28,72,000/- to the builder. The relevant portion of the assessment order is reproduced here as under: "Para 4 of the assessment order: In this case this office has received information from the ACIT, Central Circle 2(4), Ahmedabad, Vide letter No. ACIT/CC-2(4)/Ahd./Passing Inf./2018-19/18 dated 15.02.2019, in resp....
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....assessee is also not tenable. Further, the evidence of 'on-money' was found during the course of search is important evidence." On the basis of matrix of facts and evidentiary documents found during the course of search and seizure operations against the builder J.P. Iscon Group and duly considered in the assessment order, the addition of Rs. 28,72,000/- made by the AO is confirmed. 8. In the result, appeal of the appellant is 'Dismissed'." 5. The assessee is in appeal before us against the order passed by Ld. CIT(A), confirming the additions made by the Assessing Officer. Before us, the Counsel for the assessee took a legal argument that additions have been made on the basis of certain documents found during the course of search carried out at the premises of a third-party (Iscon Group) and therefore, in these set of facts, the correct course of action should have been to initiate 153C proceedings, by confronting the material to the jurisdictional Assessing Officer of the assessee. However, in the instant facts, the Assessing Officer proceeded to initiate proceedings under Section 147 of the Act directly against the assessee which is not p....
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....n the case of Smt. Samanthapudi Lavanya 127 taxmann.com 188 (Visakhapatnam - Trib.), the ITAT held that where no fresh information was collected by Assessing Officer or no information had come to notice of Assessing Officer in normal course other than information collected during course of search from another person, all search assessments were required to be made in case of assessee under sections 153A or 153C, but not under Section 147. In the case of Rajat Saurabh Chatterji vs. ACIT (ITAT Delhi) in ITA 2430/Del/2015 dated 20.05.2016, the Tribunal observed that where the Assessing Officer detects incriminating material in search, he has to proceed only u/s 153C and not u/s 147. A notice u/s. 148 to assess such undisclosed income is void ab initio. In the case of Shri Kalyan Buildmart Pvt. Ltd., Jaipur. ITA No. 152 & 153/JP/2018, ITAT held that the reopening under section 147/148 of the Act is not valid when the proper course of action was only to initiate the proceedings under section 153C/153A of the Act in case addition is sought to be made on the basis of material found during course of search at premises of a third party. In the case of Arun Kumar Kapoor 16 taxmann.com 3....