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2015 (4) TMI 545 - ITAT DELHI

2015 (4) TMI 545 - ITAT DELHI - TMI - Validity of proceedings u/s 153 - Held that:- After considering the satisfaction note and the assessment order of the AO for AY 2009-10, it is evident that the seized document belonged to AY 2009-10 and not to AY 2005-06 & 2006-07. Therefore, in our opinion, there is no necessity of sending the matter back to the file of AO for verification of the year to which the seized document belonged. In view of above, we respectfully following the decisions of Hon’ble .....

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& 5118/Del/2013 - Dated:- 1-4-2015 - IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI Shri G.D. Agrawal AND Shri H.S. Sidhu JJ ITA nos. 5117 & 5118/Del/2013 M/s Brightways Housing & Land Versus DCIT For the Appellant : Shri Salil Agarwal Adv. & Shailesh Gupta CA For the Respondent : Smt. A. Misra CIT (DR) 01/04/2015. ORDER Per G.D. Agrawal, V.P.: These appeal, by the assessee, are directed against separate orders of ld. CIT(A), relating to A.Y. 2005-06 & 2006-07. Sinc .....

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pany was found from the premises of the searched person and thus, the proceedings initiated under section 153C of the Act should have been quashed as such. 3. At the time of hearing, before us, it was submitted by the ld. counsel of the assessee that search & seizure operation u/s 132 of the I.T. Act was carried out on 5-1-2009 in Taneja-Puri group of cases. During the course of search, certain documents belonging to the assessee were found and seized. On the basis of those documents, the AO .....

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rder for AY 2009-10 and pointed out that all these documents pertained to AY 2009-10 and the addition on the basis of these documents was already made in assessment year 2009-10. He, therefore, submitted that the initiation of proceedings u/s 153C for the years under consideration is not valid. In support of this contention he relied upon the decision of the ITAT Delhi B Bench in the case of DCIT Vs. Devi Dayal Petro Chemical Pvt. Ltd. vide ITA no. 5430 & 5436/Del/2013. He also relied upon t .....

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td. (supra) in para 9.2 of their order. 5. In rejoinder, it is submitted by the ld. counsel for the assessee that in the case of Devi Dayal Petro Chemical Pvt. Ltd. (supra), the ITAT directed the AO to verify the year to which the documents belonged. However, in the case of the assessee this work has already been done by the AO and the addition has been made in AY 2009-10. He was fair enough to point out that the assessment for assessment year 2009-10 has been quashed by the ld. CIT(A) because t .....

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05.01.2009 at various business and residential premises of Taneja -puri group of cases. During the course of search at 9, K.G Marg, New Delhi the residence of Sh. Ravinder Kumar Taneja and office premise of various TDI group of companies, various incriminating documents were found and seized. Page 19 to 23 of the Annexure A-7 of Party A-2 contains information relating to TDI, Centre, Jasola mentioning shop number, customer area (sq. ft.) total deal. Misc, received, cheque received, total due an .....

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n found and seized during the course of search under section 132(1) of the Income Tax Act, 1961 carried out at 9, KG Marg, New Delhi the residence of Sh. Ravinder Kumar Taneja and office premises of various TDI group of companies. In the light of the above, I am satisfied that the above case is a fit case for issuing notice under section 153C of the Income Tax Act, 1961 as the seized documents mentioned above belong to Brightways Housing and Land Development Ltd. being a person other than a pers .....

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cument vide ann. A-7 page nos. 19 to 24 have been found and seized. The documents give complete details in respect of actual sale consideration in respect of various shops in TDS Centre. These pages are annexed to this order and are a part of it. 6.2. Then in para 6 he gave a scanned copy of the document. In para 7 to 10 he mentioned as under: 7. The documents show following details: 1. Shop Number 2. Name of customer 3. Area 4. Total deal and rate 5. Miscellaneous received 6. Cheque received 7. .....

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s written in code after omitting two zeros. This is very clear and obvious by looking at the rates and agreement value. On multiplying the rate with area, the figure of total deal is calculated on the basis of which it becomes crystal clear that the assessee has ignored two zeroes' out of the total consideration paid in cash and recorded as miscellaneous. 9. The' details of total deal value and amount received as 'Misc in cash as contained in pages 19 to 23 is calculated below:- Shop .....

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ash payment of ₹ 74,75,500/- in respect of units G-10, G-10, G-25 and G-38-39. These amounts are not included in page no. 19 to 23 and therefore are in addition to the tabulated Misc. amount of ₹ 7,21,95,284. 6.3. Thereafter he discussed the assessee s contention relating to those documents and disagreeing with the assessee s objection made the addition of ₹ 7,96,70,780/- in AY 2009-10. Thus, as per revenue, the incriminating document i.e. seized paper nos. 19 to 23 belonged to .....

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so contended that the counterfoil belonged to the year 2008-09 and, therefore, the proceedings under Section 153C could not have been initiated for the years to which the documents do not belong and even after initiating proceedings to the year to which the documents belonged, the Assessing Officer ought to have dropped the proceedings because all transactions reflected by the counterfoils by the cheques is duly accounted for. In support of this contention, he had relied upon the decision of Hon .....

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nsuring that income does not escape assessment in the hands of any other person merely because he has not been searched under section 132 of the Act. It is only a first step to the enquiry, which is to follow. The Assessing Officer who has searched the satisfaction that the document relates to a person other than the searched person can do nothing except to forward the document to the Assessing Officer having jurisdiction over the other person and thereafter it is for the Assessing Officer havin .....

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will be accordingly made after following the procedure prescribed by law and after giving adequate opportunity of being heard to such other person. That, in sum and substance, is the position." 9.2. Considering the facts of the case and the arguments of both the sides, we set aside the matter to the file of the Assessing Officer for re-examination of the issue in the light of the above decision of Hon ble Jurisdictional High Court i.e., the Assessing Officer will first verify the years to .....

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actions are duly accounted for in the books of account, as contended by the learned counsel, the Assessing Officer will drop the proceedings initiated under Section 153C. However, if for the year to which the seized documents belonged, the transaction reflected by the seized documents is not recorded in the books of account, the proceedings under Section 153C will continue and the Assessing Officer will make the assessment afresh in accordance with law. Since we have set aside all the years unde .....

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