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2014 (12) TMI 140 - ITAT LUCKNOWJurisdiction of CIT for invoking section 263 – Search and seizure – assessment made u/s 153A – AO properly applied his mind or not - Held that:- A search and seizure operation was carried out on 24.9.2010 upon the assessee at Choudhary Charan Singh Airport, Amausi, Lucknow where it was found that Shri. Mehtab Alam and his wife, Smt. Nausheen Farah Lari were carrying cash of ₹ 1 crore each in their two bags - during the course of search operation, the statement of the assessee i.e. Shri. Mehtab Alam was recorded u/s 131 of the Act and in his statement it was categorically stated by the assessee that he was carrying cash of ₹ 2 crores for purchase of raw hides from Kolkata - while completing the assessment not only in the case of the assessees but also in the case of other assessees, to whom the cash was claimed to relate, were thoroughly examined by the Assessing Officers in their respective hands by making detailed enquiries/investigations and once the AO was convinced with the explanations with regard to the source of cash of ₹ 2 crores found from the assessee during the course of search, no addition was made by the AO either in the hands of the assessee or in the hands of the respective parties to whom the cash of ₹ 2 crores relate - the assessment order cannot be set aside or revised for inadequate enquiry by the CIT u/s 263. These assessments are framed u/s 153A of the Act consequent to the search operation upon the assessees in which cash of ₹ 2 crores were found - While framing the assessments, questionnaires were issued with regard to the availability of cash and source and the same were duly replied by the assessees - according to the assessees, this cash belongs to certain other parties/concerns in whose cases assessments were also framed u/s 153C of the Act - it cannot be said that the AO has not applied his mind to the factum of seizure of cash during the course of search operation – CIT cannot invoke jurisdiction u/s 263 of the Act for setting aside the assessment order if he does not agree with the conclusion of the AO on a particular issue - since the factum of seizure of cash during the course of search operation was duly examined by the AO, invocation of provisions of section 263 of the Act for setting aside the assessment order is not valid and is to be set aside – Decided in favour of assessee.
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