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TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 1759
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....entative submitted that assessment year 2016-17 have been taken as a lead matter as all the other assessment years are identical. Therefore, grounds incorporated in IT(SS)A No. 151/Ahd/2021 for assessment year 2016-17 are reproduced hereunder:- "1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in holding that any addition during the assessment u/s.153C has to be confined to the incriminating material found during the course of search u/s. 132(1) of the Act, even though, there is no such stipulation in sec.153C of the Act. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in not appreciating that sec.153C requires a notice to. be issued requiri....
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.... books of accounts, there is no such stipulation in sec.153A and sec.153BI specifically states that the provisions of Chapter-XIV-B, under which sec.158BB falls, would not be applied where a search was initiated u/s. 132 after 3 1/5/2003. 5. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in not appreciating that assessment in relation to certain issues not related to the search and seizure may arise in any of the said six assessment years after the search u/s. 132 is conducted in the case of the assessee, and that if the interpretation of the Id. CIT(A) were to hold it will not be possible to assess such income in the 153A/153C proceedings, while no other parallel proceedings to assess such o....
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....6-17 on 17-10-2018 declaring total income at Rs. 5,18,900/-. The Assessing Officer noted in the assessment year that a search and seizure action was carried out in the case of Mahendra Shantilal Patel and his group on 06-02-2017 wherein his statement u/s. 132(4) of the Income Tax Act was recorded. During the search various evidences were collected thereby observing that the said Mahendra Shantilal Patel is engaged in providing accommodation entries of various nature prominently accommodation entries of bogus bills. In assessee's case, survey u/s. 133A was conducted at M/s Anmol Traders and the Assessing Officer found that the assessee deposited huge cash in his bank accounts. In his statement u/s. 131, Mr. Sureshbhai U Gadhecha i.e. assesse....
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....ent of the total income of a person will be brought to notice if no addition is allowed to be made for those six assessment years in the absence of incriminating material. The ld. Departmental Representative further submitted that the assessee never questioned the validity of issue of notice u/s. 153C during assessment proceedings whereas the assessment u/s. 153C is made based on facts brought out by the Assessing Officer from the verification of the bank account statements of the assessee's concern that those were mainly transferred from bank account to SVP Corporation in which the fund has been transferred from the accounts of MSP Concerns such as Fair Deal Sales Corporation, SM Enterprise, Shriji Corporation etc. in which cash has been d....
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....ance of seized/incriminating material were making addition the above issues. The ld. Departmental Representative therefore submitted that the additions on account of unexplained cash deposits of Rs. 5,75,86,820/- and addition on account of unexplained sales of Rs. 9,94,31,274/- are distinguishable. The ld. Authorized Representative relied upon the order of ld. CIT(A) and further submitted that in fact in assessee's case, the survey took place and the assessee has explained all the cash deposits made in the account as well as the unexplained sales as alleged by the Department. In respect of cash credits, the ld. Authorized Representative submitted that the CIT(A) has categorically mentioned the assessment order is based on ITS/AIIMs modules ....
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....3C never describes incriminating material still when the search parties has called for certain kind of documents relating to the transactions which are not explained the addition has to be made into that expenditure and not the sphere of the addition will go beyond the same. Thus, the ld. CIT(A) was right in holding that section 68 additions made in assessee's case are not justifiable and in fact on merit also, the ld. CIT(A) has commented that the cash deposits made by the assessee are explained through bank statements as well as the transactions conducted by the assessee. As relates to addition in respect of unexplained credit entries, the assessee has co-related the sale of gold jewerlly/bullion and has maintained purchase register, sale....