TaxTMI 
TaxTMI 
2023 (6) TMI 1542
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.....A.') in regard to the appeal before it arising out of assessment order dated 31.12.2016 u/s 153(A)/ 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') passed by Assessing Officer ACIT, Central Circle-16, New Delhi (hereinafter referred to as the Assessing Officer 'AO'). 2. Since the issue involved is common and the appeals were heard together so these are being disposed of by this consolidated order for the sake of convenience and brevity. 3. The facts in brief are pursuant to the warrant of authorization issued by the Director of Income Tax (Inv.)-II, New Delhi a search & Seizure operation u/s 132 of the Income Tax Act, 1961 was conducted on 20.01.2015 and on subsequent dates in different business and resident....
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....nts found from the premises of the third party which was not corroborated or substantiated inspite of the fact that the department has used its longest arms against the assessee by conducting search at the premises of the assessee and could not found any iota or evidence corroborating the same thus, the same is liable to be deleted. 2. Additional Grounds of Appeal: i. THAT the assessment order framed under section 153A r.w.s. 143(3) of IT Act 1961 is invalid and non-est in the eyes of the Law having been framed on the basis of the alleged incriminating material found and seized during the search in the case of the 'other person' (Mr. Rajesh Bansal) and not based upon any material seized in the search conducted in the appel....
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....efore or during the course of the hearing of the appeal." 7. Heard and perused the record. 8. As with regard to the application for entertaining additional ground he relied judgment of Hon'ble Supreme Court of India in NTPC vs. CIT (1998) 229 ITR 383 (SC). At the outset considering the additional grounds arise out of question of law touching the jurisdiction exercised. The same are allowed to be raised. 8.1 Further, on behalf of the assessee it was submitted that the impugned assessment was made without any incriminating material found during the search. It was also submitted that the impugned assessment has been drawn u/s 153A of the Act and not u/s 153C of the Act. Relying the judgment of Hon'ble Delhi High Court in Pr.CIT vs. Me....
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....ts appellate order has observed categorically that no material against the assessee was found during the search which would corroborate document seized from the premises of Rajesh Bansal or corroborate his statement, to prove that the appellant made any cash payments as mentioned in alleged document seized material Party H-6 inventory A-32/Page 46, for deleting the addition of Rs. 1,56,83,000/-. However, with regard to other document Party H-6 inventory A-32/Page48 Ld. CIT(A) relied the document and its content too. 10.1 This Bench is of considered opinion that such act of approbation and reprobation at the same time in regard to admissibility and credibility evidences allegedly, said to be collected in the search, makes the impugned ord....
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....vered from the premises of Sh Rajesh Bansal were not part of any books of accounts or other record kept in due course of business or to record transactions of regular nature. The well settled legal position is that a non speaking document or as called the dumb documents, without any corroborative material, evidence on record and finding that such document has materialized into transactions giving rise to income of the assessee which had not been disclosed in regular books of account by such assessee, has to disregarded for the purposes of assessments to be framed pursuant to search and seizure action. It shall not be out to place to mention that the Hon'ble Supreme Court in the case of K.P. Varghese v. ITO [1981] 24 CTR (SC) 358/[1981] 131 ....
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....presume that its contents are true, such presumptions is available only against the person to whom it belongs and this is a rebuttable Presumption. The Hon'ble Delhi High Court in CIT V/s Harjeev Aggarwal (70 Taxmann.com 95; 10/03/2016) held that the statement recorded u/s 132(4) may also be used for making the assessment, but only to the extent it is relatable to the incriminating evidence/material unearthed or found during search. In other words, there must be a nexus between the statement recorded and the evidence/material found during search in order to sustain additions on the basis of recorded statement. 14. However, Ld CIT(A) seems to have erred in still relying one of the documents and that too to some part of it. The principle o....