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2022 (12) TMI 633 - ITAT AHMEDABADAddition u/s 68 - identity of the creditor, genuineness of the transaction and creditworthiness of the creditor not proved - HELD THAT:- Addition made by AO invoking Section 68 does not hold it good since the assessee has filed the confirmation letter from the lender, Bank statement from the assessee, Income Tax Return and statement of total income of the lender namely Mr. Rajesh Vaswani proprietor of M/s. Sunderdeep Builders. Thus the assessee has discharged its initial onus namely identity of the creditor, genuineness of the transaction and creditworthiness of the creditor. Further AO has disbelieved Rs. 5 Crores received from creditor and not doubted about the Rs. 30 Crores received from the same lender. Assessing Officer has not doubted the interest payment of Rs. 1,83,79,553/- as against the above loan, with appropriate TDS made by the Assessee. Therefore the addition made by the AO u/s. 68 of the Act is not sustainable in law. We have no hesitation in confirming the order of the Ld. CIT(A), who deleted the addition made by the Assessing Officer u/s. 68 - Decided in favour of assessee. Assumption of jurisdiction under 153C - what is the relevant date from which the amended provisions of section 153C would be applicable? - HELD THAT:- No doubt, the amended provisions has been expressly brought into force with effect from 01.06.2015. However the search action has been conducted in this case on 10.03.2015 which is prior to 01.06.2015. Hence the provisions of law, as existing on the date of search namely 10.03.2015 in this case is to be followed. Therefore the satisfaction note recorded by the Assessing Officer on 17.11.2017 (which is extracted in Para 2.1 of this order), invoking the amended provisions of section 153C namely "various documents were seized which "relates to" and the information contained therein "pertains" to the assessee is not correct in law. Even as per the pre-amended provisions of Section 153C, AO has to record satisfaction to the effect that seized material "belongs" or "belongs to" other person. In this case, the A.O. has not put on record that any material seized during the course of search does belong to the assessee. However seized materials related to other third party. Therefore in our considered view, the invocation of proceedings u/s. 153C is against the provisions of law. As relying on ANILKUMAR GOPIKISHAN AGRAWAL case [2019 (6) TMI 746 - GUJARAT HIGH COURT]the grounds raised by the assessee in the cross objection is allowed and assessment order is hereby quashed.
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