TaxTMI 
TaxTMI 
2026 (5) TMI 717
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....arned Commissioner of Income Tax (Appeals)-12, Hyderabad ("Ld. CIT(A)"), all dated 23.07.2025 and 18.07.2025. Since identical issues are raised by the assessee in all these five appeals, for the sake of convenience, these were heard together and are being disposed of by this common consolidated order. ITA No. 1513/Hyd/2025 2. The assessee has raised the following grounds of appeal: "1. The Ld. CIT(A) erred in law and on facts while confirming the assessment for assessment Year 2020-21 made under section 153C of the Income-tax Act, 1961 (the Act) on the basis of a fake and dumb document in the form of the impugned agreement of sale dated 31-12-2019. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) ....
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....the Act were initiated in the case of the assessee. Accordingly, notice under section 153C was issued by the Ld. AO on 28.08.2023. In response to the said notice, the assessee filed return of income on 09.11.2023 declaring nil income. Subsequently, the case of the assessee was selected for scrutiny and notice under section 143(2) of the Act was issued by the Ld. AO. After considering the submissions of the assessee, the Ld. AO made additions of Rs. 18,04,500/- and Rs. 4,44,600/- under section 69A of the Act in the hands of the assessee and completed the assessment under section 153C of the Act vide order dated 25.02.2025, assessing the total income of the assessee at Rs. 22,49,100/-. 4. Aggrieved by the assessment order, the assessee pre....
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....orm the basis for valid assumption of jurisdiction under section 153C of the Act. Accordingly, the Ld. AR submitted that the initiation of proceedings under section 153C of the Act is bad in law and the assessment framed thereunder is liable to be quashed. 6. Per contra, the Learned Departmental Representative ("Ld. DR") supported the orders of the lower authorities and submitted that the seized document is a properly drafted agreement of sale containing complete details such as names, addresses of vendors and vendee, and details of the property. The Ld. DR contended that the document cannot be termed as a dumb document merely because it is not signed by all parties. It was further submitted that subsequent transactions carried out by th....
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....ugh the satisfaction note recorded by the Ld. AO placed at page no.11 of the paper book, which is to the following effect: 8. On perusal of the above, we find that the Ld. AO has relied entirely upon the said seized document for initiating proceedings under section 153C of the Act. No other independent material or corroborative evidence has been referred to in the satisfaction note. In our considered opinion, the jurisdiction under section 153C of the Act can be assumed only when there exists incriminating material belonging to or relating to the assessee. In the present case, the seized document, being unsigned by the assessee and lacking corroborative support, cannot be regarded as incriminating material. In this regard, we have gone t....
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....s that the seized document cannot be treated as incriminating material, we hold that the initiation of proceedings under section 153C of the Act and the consequent assessment order passed thereunder are not sustainable and are liable to be quashed. 10. As regards the contention of the Ld. DR that subsequent transactions corroborate the seized document, we are unable to accept the same. Such an exercise of corroboration ought to have been carried out by the Ld. AO at the stage of recording satisfaction and before initiation of proceedings under section 153C of the Act. The Revenue cannot seek to supplement the deficiency in the satisfaction note by bringing in new material at the appellate stage. Accordingly, we hold that the assumption o....
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....ndia Housing Pvt Ltd on 23-03-2021. Accordingly, search assessment proceedings u/s 153A were initiated in the case of M/s Spectra India Eco Projects Pvt Ltd and completed. During the course of search assessment proceedings, and on perusal of the appraisal report and seized material, it is noticed that certain documents seized which consists of a loose sheet which consists the details regarding a development agreement entered by the assessee with M/s Spectra India Eco Projects Pvt Ltd on 31.12.2019 for the land admeasuring Ac. 91-18 Gts, Situated at Masaipet Village, Yadagirigutta Mandal, Yadadri-Bhuvanagiri District. The details of the seized material is as under; SI.No. Annexure Details Documents seized as per annexure 1. A/SIEPL/OFF....