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2020 (12) TMI 54 - HC - Income TaxAssessment u/s 153C - necessity to establish the correlation the document-wise with the assessment years in question - CIT(A) and the Tribunal held that there was no material brought on record to prove the nexus between withdrawal of the amount from the bank account of the said Mr.T.John Rajasekhar and the deposits made in the bank accounts of Dr.Gurusankar, managing trustee of the assessee trust - HELD THAT:- Hon'ble Supreme Court in the case of CIT-III, Pune Vs. Sinhgad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] wherein held that where loose papers found and seized from the residence of the President of the assessee, an educational institution, indicating capitation fees received by various institutions run by the assessee did not establish correlation document-wise with the assessment years in question, the notice issued under Section 153C of the Act has to be quashed. If we examine the case on hand, we find that the entire case is completely factual. We also find that the CIT(A) has done the factual exercise elaborately and the substantial portion of the order passed by the CIT(A) has been referred to and quoted by the Tribunal in the impugned common order. CIT(A) and the Tribunal held that there was no material brought on record to prove the nexus between withdrawal of the amount from the bank account of the said Mr.T.John Rajasekhar and the deposits made in the bank accounts of Dr.Gurusankar, managing trustee of the assessee trust. Further, the CIT(A) and the Tribunal noted that the said Mr.T.John Rajasekhar had not admitted that money was paid back to the managing trustee of the assessee trust. Furthermore, on facts, it was found that the materials seized did not indicate any inflation of purchase by the assessee trust and that the deposits in the bank account of the said Dr.Gurusankar stood explained. Tribunal rightly took note of the decision in the case of Sinhgad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] that in proceedings under Section 153C of the Act, in the absence of any incriminating documents or evidence discovered during the course of search under Section 132 of the Act in the case of searched person against the assessee, the jurisdiction under the provisions of Section 153C of the Act cannot be assumed. CIT(A) allowed the appeals filed by the assessee as confirmed by the Tribunal. We hold that no question of law much less substantial question of law arises for consideration in these appeals. - Decided against revenue.
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