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2024 (8) TMI 1536 - AT - Income TaxValidity of re-assessment proceedings u/s 147 v/s assessment u/s 153A - information received from the DCIT Central Circle 1 Pune according to which details emerged during the statement recorded u/s 132(4) of Shri Sachin Nahar and during search and post search enquiries by the Investigation wing and also during the course of enquiries conducted during search proceedings by the Central Circle 1(1) Pune that the assessee has received cash loan HELD THAT - Certain documents were seized from the premises of Shri Sachin Nahar which contained information relating to the present assessee. Therefore the provisions of section 153C are applicable as according to the said section it is applicable if any information contained in the seized document relates to the assessee. In view of the detailed reasoning given by the CIT(A) / NFAC based on various decisions we uphold the order of the Ld. CIT(A) / NFAC that the reopening of the assessment u/s 147 was not valid and the proper course of action that should have been taken by the Assessing Officer was u/s 153C as the provisions of section 153C of the Act are clearly applicable to the facts of the case. We therefore uphold the order of the CIT(A) / NFAC on the issue of validity of re-assessment proceedings. The first issue raised by the Revenue is accordingly dismissed. Addition made on the basis of the statement recorded u/s 132(4) and no other evidence whatsoever was available with the Assessing Officer except this statement. - As find from the reasons recorded as well as the assessment order that the assessee according to the AO has taken loan from Shri Sachin Nahar which is a liability. However AO has treated the same as income u/s 69A of the Act. Once the AO himself has accepted that the assessee has taken loan through Shri Sachin Nahar although the assessee denies to have taken any such loan the provisions of section 69A could not have been invoked. Further as mentioned earlier neither during the course of assessment proceedings nor during the course of appellate proceedings the AO has brought on record any evidence based on which the assessment has been made except the statement of Shri Sachin Nahar recorded u/s 132(4). We have already mentioned in the preceding paragraphs that the addition cannot be made merely on the basis of the statement recorded u/s 132(4) of the Act as the presumption u/s 132(4A) of the Act is available only in respect of the person from whom the paper is seized. It cannot be applied against the third party and hence no addition could be made on the basis of evidence found with the third party. CIT(A) / NFAC on this issue we do not find any infirmity in his order deleting the addition on merit. Accordingly the order of the CIT(A) / NFAC on this issue is also upheld. Thus the appeal filed by the Revenue is dismissed.
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