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2013 (10) TMI 604 - AT - Income TaxProceedings u/s 153C - Incriminating documents against assessee - Held that:- A bare reading of section 153C makes manifestly clear that the assessing officer has to satisfy himself that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A. Section 153C makes it very clear that the proceedings under that section has to be initiated only in case the material found during the course of search operation relates to the person other than searched person. Therefore, for initiation of the proceedings, the material found during the course of search operation is relevant for initiation of proceedings u/s 153C of the Act. In the case before us, only for the assessment year 2005-06 a balance as on 31-03-2005 was found which relates to the present assessee. Apart from this, a sale deed was also found. However, no addition was made on the basis of the sale deed. Therefore, the only document available on record is the balance-sheet as on 31-03-2005 which relates to assessment year 2005-06 - addition can be made only on the basis of the material available on record. In respect of other years, there cannot be any addition in the absence of any material. When there is a customary practice in this part of the country to give and receive gifts on the occasion of marriage, in the absence of any other investigation carried out by the department on the basis of the list of donors filed by the assessee, disallowing any part of the gift may not be justified. Accordingly, the orders of the lower authorities are set aside and the addition of Rs.5 lakhs is deleted. In the absence of any other material to show that the assessee has received on money over and above that disclosed in the sale deed, this Tribunal is of the considered opinion that there cannot be any presumption that the assessee has received any on money. Moreover, the sale of land was disclosed in the regular return of income filed on 27-04-2004 and the assessment proceedings were not pending. Therefore, in the absence of any further material found during the course of search operation, no proceedings could be initiated u/s 153C of the I.T. Act. Therefore, the CIT(A) has rightly deleted the addition. Telescoping of investment in the unaccounted profit of the firm - Held that:- the document SSA- 29 discloses capital contribution by the assessee to the firm M/s P.A. Kuriakose Jewelleries. It is also an admitted fact that unaccounted income was determined in the hands of Ms P.A. Kuriakose Jewellers on the basis of material found during the course of search operation. Therefore, there is an obvious nexus between the investment shown in the balance-sheet found during the course of search operation and the unaccounted income determined in the hands of M/s P.A. Kuriakose Jewellers - Following decision of Sinhagad Technical Education Society Versus Commissioner of Income Tax [2012 (3) TMI 262 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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