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TaxTMI 
TaxTMI 
TaxTMI 
2024 (4) TMI 1340
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....putting post-dated cheque issued by the assessee into banking channel for encashment without bringing any material or corroborative evidence on record in complete disregard to the documents filed and explanations given by the assessee. The addition so made is illegal, against the provisions contained in the income-tax Act, bad in law and hence liable to be deleted. 2. The learned CIT(A) erred in law and on facts in confirming the addition simply on the basis of assessee's statement given during the course of search and seizure operation under coercion and threat without bringing any corroborative / cogent material on record. The addition so made is illegal, against the provisions contained in the income-tax Act, against the principle of natural justice and hence liable to be deleted. 3. The appellant craves the leave to add, substitute, modify, delete or amend all or any of the grounds of appeal either before or at the time of hearing." 3. The assessee has raised additional grounds of appeal vide letter dated 28.12.2022 which reads as under:- "4. The assessee submits that the impugned assessment order is without valid and legal jurisdiction as the ....
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....rse available to the revenue is to proceed u/s 153C of the Act in the hands of the assessee, if the revenue so desires. In the instant case, no such proceedings u/s 153C of the Act stood initiated for the assessment year 2012-13 in the hands of the assessee. No such satisfaction as mandated in section 153C of the Act has been recorded either by the ld AO of the searched person or by the ld AO of the 153C person in the instant case. This is the essence of the additional ground raised by the assessee before us. Since, it goes to the root of the matter and facts related for this adjudication on the issue are already on record, we deem it fit to admit the said additional ground and take up the same for adjudication. 5. As stated earlier, the only incriminating document which is sought to be relied by the AO for making addition Rs. 5 crores in the hands of the assessee was the email dated 19.05.2011 seized from the computer in the office premises of M/s. Frost Falcon Distilleries Pvt. Ltd. The copy of the said email is enclosed at pages 37 to 39 of the paper book filed before us. On perusal of the said email, it only transpires that there was mutual allegation leveled by the assessee....
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....searched person and indeed belongs/ pertains/ relates to 3rd person (i.e. the assessee herein) and thereafter hand over those seized documents to the AO of the 3rd person (i.e. the assessee herein) in terms of section 153C of the Act. Admittedly, as noted by the ld AO in page 1 of his assessment order, the seized documents were received on 29.08.2013 by the ld AO of the assessee. Hence, the date of search in the hands of the assessee in terms of section 153C of the Act would be 29.08.2013 which falls in AY 2014-15. Accordingly, the assessment for the AY 2012-13 could at all be framed only u/s 153C of the Act and not u/s 143(3) of the Act as year of search for the assessee would be AY 2014-15 qua the incriminating material in the form of email dated 19.05.2011 which was received by the AO of the assessee only on 29.8.2013. Hence, the assessment framed on the assessee for AY 2012-13 u/s 153B read with section 143(3) of the Act deserves to be quashed as it was based on search conducted in Krrish Group of cases on 9.11.2011 only. 7. We are conscious of the fact that there was a search which had happened on the assessee itself on 18.11.2011 based on a separate warrant of authorizatio....
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....Assessing Officer is satisfied that the assets or books of account or documents seized belong to another person, then, the assets or books of account or documents seized shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person, if he is that the books of accounts or documents or assets seized have a bearing on determination on the total income of such other person. It is proposed to amend sub-section (1) of the said section so as to provide that where the Assessing Officer is satisfied that, (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) 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 of account or documents or assets, seized or requisitioned, shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reasses....
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.... 612 (Del) followed in Pr. CIT vs Raj Buildworth (P) Ltd reported in 113 taxmann.com 600 (Delhi) and the SLP of the revenue dismissed by the Hon'ble Apex Court which is reported in 113 taxmann.com 601 (SC). Consequently, the period relevant to the Asst Year 2015-16 herein, when the impugned incriminating material was found in a search of a third person, got shifted from the scope of an assessment u/s 153A of the Act to the provisions of the sections 153C of the Act being one of the six assessment year preceding the date of search in the case of the other person. 29. Thus, it could be safely concluded that in addition to the assessment order passed u/s 153A of the Act on the basis of an income-tax search conducted on the assessee, the impugned amount assessed in this assessment order as undisclosed / unexplained income, allegedly based on some incriminating material found elsewhere, with respect to the long term capital gain already declared in the return of income filed on 29/11/2015 could not be assessed in the said assessment order passed u/s 153A of the Act but it could be considered for the purpose only and only in a separate assessment order by taking recourse to ....