TaxTMI 
TaxTMI 
2024 (8) TMI 1665
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....cept the difference in figures, hence, for the sake of convenience, we are only reproducing the Grounds of Appeals relating to AY 2013-14 raised in ITA No. 1242/Del/2021 as under:- 1. "That the order dated 09-08-2021 passed u/s 250(6) of the Income-tax Act, 1961 (hereinafter called the "Act") by the Learned Commissioner of Income-Tax (Appeals) - 23, New Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Ld. Assessing Officer in making an addition of Rs. 21,80,28,782/- on account of Long Term Capital Gains allegedly claimed as exempt u/s 10(38) of the Act by unjustifiably and arbitrarily holding the same to be the result of an alleged sham transaction and a bogus accommodation entry without comprehending the facts and circumstances of the case, underlying nature of the transaction, position of law and the facts and circumstances of the case since the Appellant Company has not earned any Long-Term Capital Gains but has earned Shortterm Capital Gains on which it has duly paid tax @ 15% as per the provisions of S. 111A of the Act. 2. That the order dated 09-08-2021 passed u/s 250(6) of the Income-tax Act, 1961 (he....
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....ce Private Limited at Bhushan Centre, MG Marg, Bhikaji Cama Place, New Delhi and at the premises of Shri Raj Kumar Kedia, D-45, Back office Saraswati Garden, New Delhi. The Assessing Officer of M/s Bhushan Steel Ltd. & Shri Raj Kumar Kedia has handed over the documents which pertain to M/s Bhushan Finance Private Limited. After recording satisfaction, by the AO of the assessee, notice u/s. 153C r.w.s. 153A of the Act dated 12.9.2016 has been issued and duly served. In response to the same, letter dated 19.9.2016 was filed asking to treat the original return of income u/s. 139 of the Act filed by the assessee for AY 2013-14 on 28.9.2013 declaring income of Rs. 30,56,45,980/- as return of income filed in compliance to notice u/s. 153C of the Act. Notice u/s. 143(2) of the Act was issued on 20.9.2016 and duly served, case was fixed for hearing on 27.9.2016. Notice u/s. 142(1) of the Act alongwith questionnaire was issued on 30.9.2016 and duly served. The case was fixed for hearing on 13.10.2016. The assessee had filed a letter dated 02.11.2016 and requesting to provide copy of satisfaction recorded to issue notice u/s. 153C of the Act. AO further noted that copy of satisfaction note w....
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.... assessee submitted that a search and seizure operation u/s 132 of the Act was carried out concerning M/s Bhushan Steel Ltd. and its affiliated entities on 13.6.2014 and AO noted that certain incriminating materials were discovered during the search at the premises of M/s Bhushan Steels Ltd. and Mr. R.K. Kedia. Ld. Counsel for the Assessee took a ground that no satisfaction note was recorded by the AO of the searched person before handing over the documents and was therefore not provided to the assessee before initiating proceedings under section 153C of the Act. It was the further contention that since jurisdiction u/s. 153C r.w. 153A of the Act has been wrongly invoked by the AO as no incriminating document pertaining to Assessment Year in question were found during the course of the third party search. He further submitted that as per settled law, when no satisfaction by Assessing officer of the searched person is recorded, the requirement of section 153C was not fulfilled. He further submitted that the recording of satisfaction by the AO of the searched persons is necessary precondition for the initiation of proceedings under section 153C and when the same was not fulfilled, as....
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....y AO of the assessee comprises of block assessment period between AY 2009-10 to 2014-15 which does not specify how the incriminating material that was seized pertains to a particular assessment year qua the assessee's undisclosed income. Further, the assessee company was incorporated only on 21.9.2010, thus AY 2009-10 and 2010-11 are the period when the Company was not even in existence, yet - the years have been specified in the satisfaction note. Further, the Circular No. 24/2015 dated 31.12.2015 issued by the CBDT had instructed that the withdrawal of all pending appeals in instances where satisfaction has not been recorded by the AO of the searched person. We may refer to the said CBDT's Circular as under:- "CIRCULAR NO. 24/2015 F.No.279/Misc./140 /2015/ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 31st December, 2015 Subject: Recording of satisfaction note under section 158BD/153C of the Act - reg.- The issue of recording of satisfaction for the purposes of section 158BD/I 53C has been subject matter of litigation. 2. The Hon....