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2015 (5) TMI 545 - AT - Income TaxAddition during search - proceedings u/s 153A challenged - CIT(A) confirming the addition to the extent of ₹ 3.00 crores, on the basis of loose papers found during the course of search in the premises of assessee’s father - Held that:- The “satisfaction” mandated in sec. 153C was not arrived at by the assessing officer while examining/assessing the searched person. In the absence of the same, the notice u/s 153C issued to the assessee herein is bad in law, against the statutory mandate and hence the same is liable to be quashed. Consequently, the impugned appellate and assessment order also are liable to be quashed. A perusal of the document found during search would show that the assessee Shri Deven Mehta has no where stated that the advance payment of ₹ 3.00 crores was made by him out of his own funds. On the contrary, it states that a cheque amount for ₹ 1.00 crore is in the name of Shri Jitendra Mehta. Thus, it only talks about a property transaction only. Further, we notice that the assessing officer did not conduct any enquiry with the person named Pritibhabhi, the owners of the property or Jitendra Mehta to ascertain about the veracity of the document and further to establish that the advance payment of ₹ 3.00 crores stated therein was paid by the assessee out of his own funds. On the contrary, the assessing officer admitted in the remand report dated 20-02-2014 that the said property does not stand in the name of the assessee, i.e., even after the expiry of about five years from the present assessment year, thus supporting the contention of the assessee that the above said property transaction did not fructify. Thus, we are of the view that the assessing officer has made the impugned addition by simply placing reliance on the document without making any further enquiry to authenticate the same, which is not justified. - Decided in favour of assessee.
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