TaxTMI 
TaxTMI 
2026 (1) TMI 1581
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....ing Officer under Section 153C of the Income-tax Act, 1961, for the assessment year under consideration, without the existence of any incriminating material qua the appellant, found during the course of search conducted on Alankit Group. That, ledgers produced during the reassessment proceedings u/s 153C cannot per se be regarded as incriminating material available with the Assessing Officer; That the assessment order passed under section 153C of the Income Tax Act, 1961 is bad in law, void ab initio, and without jurisdiction, and therefore deserves to be quashed. Initiation of Proceedings barred by limitation - 'Cash Credit' is not asset 2. That on the facts and in the circumstances of the case, and in law, the learned CIT(A) erred in upholding the assumption of jurisdiction by the learned Assessing Officer under Section 153C of the Income-tax Act, 1961, for the assessment year under consideration, without appreciating that, in terms of the proviso to Section 153C, the "date of search" is to be reckoned as 15.02.2022 (the date of receipt of documents by the AO having jurisdiction). Since AY 2014-15 falls outside the six-year period (AYs 2016-17 to 2021-22....
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....,544/- merely on the basis of alleged unsubstantiated soft data/ excel sheets, is bad in law and is liable to be quashed. Addition u/s 68 of the Income Tax Act, 1961 not attracted 7. That on the facts and in the circumstances of the case and in law, the La. CIT(A) erred in sustaining the addition of Rs. 9,01,92,544/- (i.e. Rs 1,51,54,233/- + Rs 7,50,38,311/-) u/s 68 of the Act on account of unexplained source of repayment of unsecured loan and interest by arbitrarily rejecting the explanation and documentary evidences put forth by the appellant to discharge its onus u/s 68 of the Act without pointing out any defect or shortcoming by conducting any independent enquiry. That, the provisions of section 68 of the Income Tax Act, 1961 are not applicable on facts of the case. Addition u/s 69C of the Income Tax Act, 1961 not attracted 8. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) in sustaining addition of Rs. 27,05,776/- (i.e. Rs 4,54,627 + Rs 22,51,149) u/s 69C of the Act being notional commission estimated @ 3 percent on repayment of unsecured loan and interest of Rs. 9,01,92,544/- without adducing any corroborat....
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....ucture does not survive on weak foundation. 4. It is the case of the assessee that the assessment order under section 153C for AY 2014-15 is void ab initio and is bad in law. The ld. counsel for the assessee submitted that search in case of Alankit Group was conducted on 18.10.2019 under section 132. The AO of the searched person handed over the seized documents to the AO of the assessee on 14.02.2022. Reference was invited to relevant satisfaction note placed on page-71 and 72 of the paper book filed by the assessee. The ld. Counsel submitted that in the present case, Return of Income was filed on 29.11.2014 and assessment under section 143(3) was completed on 06.12.2016. Thus, the assessment had attained finality. It was submitted that the issue is now res-integra that completed assessments could not be disturbed in the assessment under section 153C in the absence of any incriminating documents. The ld. Counsel argued that a perusal of the satisfaction note and the assessment order under section 153C(supra) clearly shows that no incriminating documents was specifically seized as belonging to the assessee. It was argued that the seized material reproduced in the assessment orde....
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....e Tax, Central-3 Vs. Abhisar Buildwell P. Ltd., Civil Appeal No. 6580/2021, more particularly, paragraphs 11 and 13, has prayed to observe that the Revenue may be permitted to initiate re-assessment proceedings under Section 147/148 of the Act as in the aforesaid decision, the powers of the reassessment of the Revenue even in case of the block assessment under Section 153-A of the Act have been saved. As observed hereinabove, as no incriminating material was found in case of any of the Assessee either from the Assessee or from the third party and the assessments were under Section 153-C of the Act, the High Court has rightly set aside the Assessment Order(s). Therefore, the impugned judgment and order(s) passed by the High Court do not require any interference by this Court. Hence, all these appeals deserve to the dismissed and are accordingly dismissed." 7. Further, reliance was placed upon the decision of Hon'ble jurisdictional High Court in the case of CIT v. Kabul Chawla 2015 SCC On Line Del 11555, holding that the information/material which has been relied upon for assessment has to relate with the assessee. "(iv) Although section 153A does not sa....