2025 (3) TMI 2061

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.....2018 against the order of assessment passed u/s 153A(1)(b) r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 30.03.2015 by the Assessing Officer, DCIT, Central Circle-II, Faridabad (hereinafter referred to as „ld. AO‟). 2. Identical issues are involved in these appeals, hence, they are taken up together and disposed of by this common order for the sake of convenience. 3. The assessee has raised the following grounds of appeal for AY 2011-12:- "1. That having regard to the fact and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and issuing of notice u/s 153A r.w.s. 153C of the Act, more....

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....ing adequate opportunity of being heard. 8. That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other." 4. We have heard the rival submissions and perused the material available on record. A search and seizure operation was conducted u/s 132 of the Act at the residential as well as business and office premises of M/s. SRS Group of cases on 09.05.2012. Pursuant to the search, the case of the assessee was centralized vide order u/s 127 of the Act passed by the ld CIT, Faridabad vide order 08.02.2013. During the year under consideration, the assessee was deriving income from business and profession. A survey operation was carried at the prem....

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....t is not in dispute that survey material has been utilized by the ld AO to initiate proceedings on the assessee u/s 153C of the Act on 18.09.2014. In our considered opinion, only a 3rd party search material could be utilized for initiating proceedings u/s 153C of the Act even if the survey and search operation on the 3rd party were carried out simultaneously on the same day. From the page 2 para 3 of the assessment order, it is categorically clear that only a survey material has been utilized for proceedings on the assessee u/s 153C of the Act. This itself proves that very assumption of jurisdiction by the ld AO of the assessee in terms of Section 153C of the Act is legally flawed. 7. Further, we find that the notice u/s 153C of the Act ....

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.... is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making an addition of Rs. 7,46,250/- on account of alleged interest paid on alleged cash deposits and that too in the proceedings u/s 153C of the Act. 4. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs. 7,46,250/- is bad in law and against the facts and circumstances of the case. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO ....