2026 (8) TMI 958

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....ief facts of the case are that the assessee is an individual, filed his return of income for the A.Y.2021-22 on 23.12.2021, declaring total income of Rs. 78,850/- and agricultural income of Rs. 2,45,000/-. A search and seizure operation u/s. 132 of the Income Tax Act, 1961 ("the Act") was conducted on 28.01.2021 in the case of Dr. Parvataneni Nagabhushanam, Prop. Usha Diabetic Hospital. During the course of survey u/s. 133A in the business premises of Dr. Parvataneni Nagabhushanam, it was noticed that Dr. Parvataneni Nagabhushanam has paid an advance of Rs. 33,00,000/- in relation to purchase of flat. During the course of assessment proceedings, the AO on the basis of information received from the Investigation Wing in connection with searc....

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....h as alleged by the AO. The Ld.CIT(A) after considering relevant submissions of the assessee rejected the legal ground taken by the assessee on the issue of validity of the proceedings and observed that the documents relied upon were impounded u/s. 133A of the Act and not seized or requisitioned during search u/s. 132 of the Act and therefore, the AO has rightly considered the material impounded and passed order u/s. 143(3) of the Act. The Ld.CIT(A) also rejected the arguments of the assessee on merits and claimed that as per documents found during the course of search / survey, the appellant received on money of Rs. 37 lakhs in connection with sale of Flat No.4. The sale agreement dated 07.11.2020 clearly fixes the total consideration at R....

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....and assessed income in the assessment order passed u/s. 143(3), additions made by the AO is unsustainable, therefore, he submitted that the additions made by the AO and confirmed by the Ld.CIT(A) should be deleted. 6. Sri Nilanjan Dey, CIT(DR) on the other hand supporting the order of the CIT(A) submitted that the AO relied upon the material impounded during the course of survey conducted in the case of Dr. Parvataneni Nagabhushanam u/s. 133A of the Act. The claim of the AO relied upon the documents found during the search proceedings are not found on the basis of any evidences, therefore, the additions made by the AO in the assessment proceedings u/s. 143(3) of the Act is valid and the Ld.CIT(A) has rightly sustained the additions made ....