TaxTMI 
TaxTMI 
2026 (7) TMI 1235
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....ve grounds are without prejudice to each other." 2. The assessee has also raised following additional grounds of appeal:- "1. In the facts and circumstances of the case and in law the Ld. Assessing Officer erred in issuing notice under section 153A in gross violation of third proviso to section 153A read with Rule 112F." 3. Brief facts of the case are that in the afternoon on 31.03.2018, information was received from Nippani Rural Police Station, District-Belagavi, Karnataka, that during the Legislative Assembly Election in the state of Karnataka, Model Code of Conduct was enforced. Static Surveillance Team ('SST') was set up for enforcing Model Code of Conduct. SST Team intercepted one Hyundai Creta Car, bearing registration No. MH-46-AU8965, travelling from Kharghar, District Raigad, Maharashtra to Gadhinglaj Kolhapur, carrying a cash of Rs. 20.00 Lakhs. Nippani Rural Police has registered a First Information Report (FIR) against the assessee (Arun Ramu Shikhare) for violation of the Model Code of Conduct. The information was passed over to ADIT(Inv) Unit 1, Belagavi for enquiries with the assessee to ascertain the source of cash found in his possession. During int....
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.... work in the name of Abhiyanta Corporation. The cash was withdrawn from the Ajara Urban Bank which is in the name of Abhiyanta Corporation. The assessee furnished a certificate from his Banker and the details of currency notes seized. He stated that he was carrying a cash of Rs. 20.00 Lakhs on 31.03.2018 which is the part of his audited bank account, which is reflected in his ITR, which is uploaded in the system. The assessee submitted that the total cash in hand as on 31.03.2018 was of Rs. 20,54,802/-, out of which he was carrying Rs. 20.00 Lakhs, while he was travelling to Gadhinglaj through Kognoli Village near Toll Plaza Check Post. During the course of recording his statement before Director of Income Tax (Inv.), Unit-1, Belagavi, he stated that cash of Rs. 20.00 Lakhs is from his business. The cash was withdrawn from his Bank account in the name of Abhiyanta Corporation. The assessee also furnished the details of bank withdrawalfrom 01.04.2017 to 31.03.2018 certified by the assessee's banker that is Ajara Urban Cooperative Bank Limited, Kolhapur. 6. The reply of assessee was not accepted by the AO by taking view that the assessee had failed to address the moot question as ....
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....artmental Representative ('Ld. Sr. DR') for the revenue. We find that on filling additional grounds of the appeal, for questioning the validity of the proceedings initiated under Section 153A, our predecessor vide order sheet dated 19.11.2025 directed the Ld. Sr. DR for the revenue to obtain factual report from the AO, clarifying the facts, whether the condition of Rule 112F r.w.s Central Board of Direct Tax ('CBDT') Circular No. 10 dated 31.12.2012have been complied. The Ld. Sr. DR for the revenue was directed to file report on or before 10.12.2025. We find that the report of the AO is available on record. Thus, with the aforesaid factual background, we have heard the submissions of the Ld. AR of the assessee on the additional grounds of appeal as well as on merit. 9. The ld AR of the assessee submits that he has raised additional ground of appeal that AO erred in issuing notice under section 153A in gross violation of third proviso to section 153A read with Rule 112F.The ld AR of the assessee submits that during the Assembly election in State of Karnataka in the year 2018, Static Surveillance Team (STT) on duty intercepted the car of assessee wherein a cash of Rs. 20.00 lacs w....
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....t and again before AO and CIT(A) has categorically said that the cash seized was from the past withdrawal from the bank account in Ajara Urban Cooperative Bank Limited, Kolhapur and was being carried for payment to labour and material for the purpose of bossiness. The assessee has shown the cash in hand was shown in the cash books. The total withdrawal in the financial year was more than Rs. 88.76 lacs, such fact is duly recorded by ld CIT(A). 11. On the other hand, the ld Sr DR for the revenue submits that in the present case, the cash was seized on 31.03.2018 and requisition was made on 26.08.2018, thus sequence falls in two different assessment years. The AO has furnished his report on the additional ground of appeal raised by the assessee. The AO has followed due procedure for issuing notice under section 153A. No material is brought on record to invalidate the facts that the search and seizure action was not valid. On the alleged non-compliance of Rule 112F, the ld Sr DR for the revenue submits that the objection of assessee is misconceived. No such objection was raised by the assessee during assessment. The assessment cannot be invalidated on hyper technical issues. On mer....
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....r the existing Rule 112E, specifying the class or classes of cases in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made. 3. The aforesaid amendment was introduced with a view to reduce infructuous and unnecessary proceedings under the Income Tax Act, 1961 in cases where a search is conducted u/s 132 or requisition made u/s 132A and cash or other assets are seized during the election period, generally on a single warrant, and no evidence is available, or investigation required, for any assessment year other than the assessment year relevant to the previous year in which search is conducted or requisition is made. 4. In such cases, the officer investigating the case, with the approval of the Director General of Income Tax, shall certify that - (i) the search is conducted under section 132 or the requisition is made under section 132A of the Act in the territorial area of an assembly or parliamentary constituency in respect of which a notification has....