TaxTMI 
TaxTMI 
2025 (12) TMI 286
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....ome for the year under consideration. The Assessing Officer in this case received information from ACIT, Central Range-1(1), Mumbai that the assessee had made cash deposit of Rs. 50,51,750/- as a member of the society in the account maintained with M/s. Shri Renuka Mata Multistate Credit Society Ltd. In the case of M/s. Shri Renuka Mata Multistate Credit Society Ltd. a Search & Seizure Action was carried on 26/05/2017. During the search action, the above information had been revealed. On verification of details available on record it is seen that the assessee had not furnished his return of income although substantial cash of Rs. 50,51,750/- has been deposited in the account of M/s. Shri Renuka Mata Multistate Credit Society Ltd. After analyzing above information the Assessing Officer came to the conclusion that the source of the cash deposit of Rs. 50,51,750/- in the bank account remained unverified. Accordingly, the Assessing Officer was satisfied that the income of Rs. 50,51,750/- have escaped from taxation. He, therefore, reopened the case u/s 147 of the IT Act after obtaining prior approval from the competent authority and notice u/s 148 dated 31.03.2021 was issued to the asse....
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.... to those notices issued during the course of assessment proceedings. He has also least bothered to file appeal within the statutory time limit. However, in the interest of natural justice, the delay is condoned and the appellant was given an opportunity during the course of appeal proceedings to furnish the sources of cash deposits. The appellant raised the issue of jurisdiction only in Additional Grounds of Appeal and not submitted any evidence in support of cash deposited. In view of the appeal is decided on merits. 6. Adjudication of Additional Grounds: 6.1 The appellant has raised the issue of assumption of jurisdiction in his Additional Grounds of Appeal. It is to be mentioned here that as per Sec. 124(3) of the IT Act, no person shall be entitled to question the jurisdiction of AO after completion of assessment. In this connection, Sec. 124(3) of the IT Act is reproduced below: (3) No person shall be entitled to call in question the jurisdiction of an Assessing Officer- (a) where he has made a return 34 [under sub-section (1) of section 115WD or) under sub-section (1) of section 139, after the expiry of one month from the date on which (a)....
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....orded by the AO are as under. Brief details of assessee The above named assessee is having PAN. As per information available on records the assessee has carried out significant financial transactions, however, the assessee has not filed return of income. 2. Brief details of Information collected/received by the AO In this case as per the information received in category of High Risk Transaction CRIU/VRU Information on Insight Portal of the department, it is noticed that the assessee has entered into significant financial transactions as mentioned hereunder in Para 5 3. Analysis of information collected/received On perusal and analysis of information received from ACIT, Central Range 1(1), Mumbai disseminated through Insight portal, it is noticed that during the course of search & Seizure action u/s 132 of the IT Act, 1961 carried out in case of the M/s. Shri Renuka Mate Multi State Urban Co-operative Credit Society Ltd. (in short Society/SRMSCS) on 26.05.2017, it was found that the huge money was deposited in the bank accounts maintained in the society and during the course of assessment proceedings the society could not explain....
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....pement of income within the meaning of Explanation 2(a) to Section 147 of the Income Tax Act, 1961. 6.5 There is no dispute that appellant had maintained an account with Shri Renuka Matha Multi-State Urban Co-operative Credit Society Ltd. and deposited huge amount of cash into that account. However, upon verification, it is noticed that he did not file any return of income for the relevant assessment year. Hence, on the basis of that information, reasons were recorded by the AO and notice u/s 148 of the IT Act was issued on 31.03.2021. Hence, assumption of jurisdiction by the AO u/s 147 of the IT Act was well within the scope of Sec. 147. Accordingly, this Additional Ground is not maintainable and dismissed. 7. Decision on Ground Nos. 1 to 4: 7.1 As discussed earlier, the appellant did not file any return of income in response to the notice issued u/s 148 of the IT Act. If we go through the grounds of appeal, it is seen that the appellant did not dispute the cash deposit of Rs. 50,51,750/- in the relevant assessment year. His only ground was that entire credits into the bank account cannot be treated as undisclosed income and it was out of past withdrawal....
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.... addition made by the AO and dismiss Ground Nos. 1 to 4. 8. As a result, this appeal is dismissed." 6. Aggrieved with such order of Ld. CIT(A)/NFAC, the assessee is in appeal before this Tribunal. 7. Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT(A)/NFCA is unjustified. Ld. AR submitted before us that under identical facts and similar circumstances a coordinate bench of this Tribunal in the case of Vijaykumar Mangilal Chordiya vs. NFAC, in ITA No.1075/PUN/2024 order dated 19.09.2024 has allowed the appeal of the assessee by holding that the case was reopened on the basis of information that emerged at the time of search at the premises of M/s. Shri Renuka Mata Multistate Credit Society Ltd. therefore, the proper course of action by the Assessing Officer should have been under the provisions of section 153C and not under the provisions of section 147 of the Act. Accordingly, Ld. AR prayed before the Bench to set-aside the order passed by Ld. CIT(A)/NFAC and quash the assessment order passed u/s 147 r.w.s. 144 of the Act by the Assessing Officer. 8. Ld. DR appearing from side of the Revenue relied on the orders passed....
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.... vide ITA No.688/PUN/2024, order dated 19.08.2024 for assessment year 2017- 18. We find the Tribunal after considering the various decisions has held that in such a situation the proper course of action should be the provisions of section 153C of the Act and not section 147 of the Act. The relevant observations of the Tribunal from para 16 to 22 of the order read as under: "16. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC and the paper book filed by both the sides. We have also considered the various decisions cited before us. We find the Assessing Officer, on the basis of information available that the assessee has taken cash loan of Rs. 6,20,00,000/- from various persons through Shri Sachin Nahar, who made a statement u/s 132(4) of the Act to this effect during the course of search proceedings at his premises and on the basis of entries found in the loose sheets and other books of account maintained by him, reopened the assessment u/s 147 of the Act after recording reasons which have already been reproduced earlier. Since the assessee could not give any satisfactory explanation regarding the l....
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.... over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years referred to in sub-section (1) of section 153A : ................." 18. A perusal of the above provisions shows that the same is applicable if any money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to or any books of account or documents seized or requisitioned pertains or pertain to or any information contained therein relates to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over ....
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..../s. 132(4) of the Act at his residence on 02.08.2017, Shri Sachin Nahar stated that this seized material contain details of his money lending business in Cash and the Notings therein are related to Principal amount lent by lenders & borrowed by borrowers, names of lenders & borrowers, interest component etc. In the said seized registers, there are two types of notings, one which contains the accounts of borrowers and other registers contain notings of names of investors (depositors) in coded words. Here it is important to mention that Sachin Nahar used to write the name of investors and borrowers in certain coded words. Further the amounts mentioned in the seized documents are short by three zeros. For example for amount 100000, the noting is made 100 in seized registers. " 21. From the above it is clear that certain documents were seized from the premises of Shri Sachin Nahar which contained information relating to the present assessee. Therefore, the provisions of section 153C are applicable as according to the said section, it is applicable if any information contained in the seized document relates to the assessee. 22. Under these circumstances and in view of ....