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Assistant Commissioner of Income Tax Central Circle-XXX, Kolkata and others Versus M/s. Budhiya Marketing Pvt. Limited Kolkata, EDWARD SUPPLY P. LTD. & others

Validity of assessment completed under section 153A - search carried out under section 132(1) - addition on share capital and the share premium as well as the disallowance of the expenses - Held that:- In the case of the assessee, the addition has been made in each of the assessment years on account of the share capital and the share premium as well as the disallowance of the expenses. During the course of the search taken place in the case of the assessee, we noted that no incriminating materia .....

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The banker has made the Pay Order in respect of the balance of the Bank account in favour of the Revenue as per the order of ADIT vide letter dated 11.02.2010, only that Pay Order was seized. It is not the case that the Bank account was not disclosed. Except the Bank account, no other assets, documents or material were brought to our knowledge by the ld. D.R., which has been found or seized by the Department, so that it could be regarded to be the incriminating material in respect of the share c .....

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tly Hon’ble Bombay High Court has also approved the decision of the Special Bench, Mumbai in the case of All Cargo Global Logistics Limited –vs.- DCIT, ITAT, Rajkot Bench reported in (2015 (5) TMI 656 - BOMBAY HIGH COURT.). - Decided in favour of assessee. - I.T.A. Nos. 1545 & 1546/KOL./2012,C.O. Nos. 20 & 21/Kol/2013,ITA Nos. 1538, 1539 & 1540/Kol/2012,C.O. Nos. 17, 18 & 19/Kol/2013 - Dated:- 10-7-2015 - Shri P.K. Bansal and Shri Mahavir Singh, JJ. For the Petitioner : Shri Niraj Kumar, CIT, D. .....

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variation of amounts in ground no. 4: 1. For that on the facts and in the circumstances of the case, the assessment order dated December 30, 2011 u/s. 143(3)/153A is without and/or in excess of jurisdiction and bad in law and on facts. 2. For that on the facts and in the circumstances of the case, action u/s. 132(1) of the Income Tax Act taken against the appellant and seizure of its entire bank balance was unwarranted, without and/or in excess of jurisdiction and bad in law and on facts. 3. For .....

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the aforesaid, on the facts and in the circumstances of the case, the Assessing Officer erred in adding the share capital of ₹ 4,00,000/- and share premium of ₹ 36,00,000/-, aggregating to ₹ 40,00,000/- and his purported findings in that behalf have been arrived at in gross violation of the principles of natural justice, without providing copies of the statements relied upon or affording opportunity of cross examination, ignoring the evidence adduced by the appellant and/or ob .....

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hat behalf have been arrived at in gross violation of the principles of natural justice, without providing copies of the statements relied upon or affording opportunity of cross examination, ignoring the evidence adduced by the appellant and/or obtained by the Assessing Officer from the share applicants and the same are wholly arbitrary, erroneous, unreasonable, perverse and misconceived. ITA No. 1540/Kol/2012(A.Y. 2006-07) 4. For that further and in any event and without prejudice to the afores .....

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n, ignoring the evidence adduced by the appellant and/or obtained by the Assessing Officer from the share applicants and the same are wholly arbitrary, erroneous, unreasonable, perverse and misconceived. 3. In all C.O.s, the assessee has taken the following common grounds:- 1. For that in view of the facts and circumstances of the case the Ld. CIT(A) erred in upholding the legality and validity of the order passed under section 143(3)/ 153A, although such order was void ab initio and passed with .....

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ndly be held accordingly. 3. For that your petitioner craves the right to put additional grounds and/or to alter/amend/modify the present grounds at the time of hearing. 4. Similarly in the case of Budhiya Marketing Pvt. Ltd. in ITA Nos. 1545 & 1546/Kol/2012, the Revenue has taken the following common grounds of appeal as stated above except ground no. 4 which read as under:- ITA No. 1545/Kol/2012 (A.Y. 2005-06) 4. For that further and in any event and without prejudice to the aforesaid, on .....

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Assessing Officer from the share applicants and the same are wholly arbitrary, erroneous, unreasonable, perverse and misconceived. ITA No. 1546/Kol/2012(A.Y. 2006-07) 4. For that further and in any event and without prejudice to the aforesaid, on the facts and in the circumstances of the case, the Assessing Officer erred in adding the share capital of ₹ 15,72,500/- and share premium of ₹ 2,98,77,500/-, aggregating to ₹ 3,14,50,000/- and his purported findings in that behalf ha .....

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assessment order passed under section 143(3)/153A in consequence of the search carried out under sect ion 132(1) of the Income Tax Act. We, therefore, decided to dispose of the Cross Objections of the assessee before deciding the appeals filed by the Revenue. 6. Brief facts of in the case of Edward Supply Co are that the assessee was incorporated on 08.09.1995 and is a non-banking financial company. There was survey conducted at two premises of Shri Santosh Kumar Shah located at 9/12, Lal Bazar .....

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as also found out that during the course of survey/search in the case of Shri Santosh Kumar Shah that unaccounted cash was received from prospective beneficiaries and same was deposited in the Bank accounts maintained by these entry operators. After various circular transactions, cheques were issued to the beneficiaries and such entry operators charged commission for providing such accommodation entries to real beneficiaries. In consequence to the search in the case of Shri Santosh Kumar Shah, p .....

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course of surv ey u/s. 133A:- Sr.No. Description No. of written pages ID Mark 1. One CPU 2. One register of share application deals 82 PIL/1 3. One file with Misc. documents 72 PIL/2 4. A Bunch of loose sheets 34 PIL/3 The above documents bear ID mark PIL/CPU/1, PIL/1, PIL/2 & PIL/3 are being impounded. Subsequently vide order dated 11.02.2010 the revenue passed the revocation order in respect of the prohibitory order passed under section 132(3) and asked the banker to issue DD payable in fa .....

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Similarly search warrant has been issued in the name of account no.5905 of M/s. Budhiya Marketing Pvt. Ltd as submitted by ld. Senior Counsel. This fact is apparent from the copy of the Panchnama which is filed before us. In the Panchnama it is mentioned that the search has commenced on 11,02.2010 at 2 p.m. and closed on 11.02.2010 at 2-30- p.m. Only Pay Orders dated 11.02.2010 in both the cases were seized as has been prepared by the respective banker on the direction of the Authorized Officer .....

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pleted the assessment vide order dated 30.12.2011 under section 143(3) read with section 153A in the case of M/s. Edward Supply Pvt. Ltd. by making an addition of ₹ 40 lakhs in respect of the increase of share capital including the premium received by the assessee as well as deferred revenue expenses debited to the Profit & Loss A/c. by the assessee amounting to ₹ 7,000/-in the assessment year 2004-05. The assessee went in appeal before the CIT(Appeals). The CIT(Appeal s) deleted .....

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ny was only a paper company used by Sri Santosh Kumar Shah in his business of providing accommodation entries, concluded that assessee's share capital/share application money was bogus. During the appellate proceedings the assessee stated that it had submitted all the details of its shareholders, along with copies of share applications received from the shareholders, copies of relevant bank accounts of share applicants, copies of Income Tax Returns of share applicants, relevant balance sheet .....

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e called for from the A.O. From perusal of the assessment records it is found that the A.O. had indeed carried out verification of share capital/share application money received by the assessee. All the creditors 011 account of assessee's share capital/share application money had replied to the notices u/s 133(6) issued by the A.O. and confirmed to have subscribed to the assessee' s share capital or given share application money, also explaining the source thereof. None of the share hold .....

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ion money. No doubt, the initial burden to prove correctness/genuineness of his claim is on the assessee. In the instant case, it is observed, the assessee had discharged his burden to prove genuineness of its share capital/share application money. Complete addresses of all the shareholders/ share applicants were supplied to the AO. and in response to notices u/s.133(6) all the share-holders/share applicants had filed confirmations before the AO. This not only proves identity of those persons bu .....

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ow that the share-holders or share applicants were persons of no means or did not possess creditworthiness to subscribe to the assessee's share capital or extend share application money. The A.O. has not brought any evidence on record to prove his contention that the share capital of the assessee was bogus or that the subscribers to the assessee's share capital were persons of no means or were of inadequate means, i.e., subscribers to the share capital were not creditworthy. In CWT vs. V .....

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icant does not have the means to make the investment, the investment made by the applicant actually emanated from the coffers of the assessee-company so as to enable it to be treated as the undisclosed income of the assessee-company. ITAT, Kol. Bench in the case of DCIT vs. Shaw Aromatics (P) Ltd. on Page 10 of the order has referred to the following observations of the Ape x Court in the cas e of CIT vs. Lovely Exports (P) Ltd. (216 CTR J95)(SC): "Can the amount of share money he regarded .....

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ervations also: "The burden of proof can seldom be discharged to the hilt by the assessee; if the AO harbours doubts of the legitimacy of any subscription he is empowered, may duty bound to carry out thorough investigations. But if the AO fails to unearth any wrong or illegal dealings, he cannot obdurately adhere to his suspicions and treat the subscribed capital as the undisclosed income of the Company. " Similarly, Hon'ble Madras High Court has gone to the extent of saying in the .....

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ce sheets of the share holders as well as relevant extracts of bank statements of the share holders were also filed. Thus, the assessee had discharged its onus of proving genuineness of its share capital. Once the assessee had discharged its initial burden of proof, the onus thereafter shifts upon the A.O. to prove otherwise. The A.O. at his end, conducted independent verification of genuineness of assessee's share capital by issue of notice u/s.133(6) to the share holders. All those persons .....

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ut by the A.O. and despite nothing adverse or doubtful emerging from such verification, the A.O. treated the share capital to be bogus stating only that Sri Santosh Kumar Shah and his two associates had admitted that the assessee company was a paper company used by Sri Santosh Kumar Shah for his business of entry operation. Even if the assessee company was being used for providing entries to different persons by Sri Santosh Kumar Shah, it is incomprehensible how that fact alone lends share capit .....

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the assessee company for his entry operation business is far-drawn, baseless and apparently based only on suspicion, therefore, devoid of any merit. In the light of the above discussion the addition of entire share capital and share application money by the A.O., treating the same to be bogus, is found to be unjustified and unsustainable. Hence, the addition is deleted. Grounds no.3 and 4 are, hence, allowed. Ground No. 5 is against charging of interest u/s 234B and u/s 234D of the Act. Chargin .....

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essing Officer in the similar manner, and deleted by the CIT(Appeals) in the similar manner. 9. Ld. A.R. before us contended that there was no search in the case of the assessee. The search had taken place at the premises of the banker and for this our at tention was drawn towards the copy of panchnama. It was al so pointed out that during the course of the search no incriminating material has been found or seized except the Pay Orders of the amount standing in the Bank A/c of the assessee, whic .....

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the course of the survey the revenue has impounded the following documents:- Inventory of books of account found in the premise of 32, Ezra St., Room No. 264, 2n d Floor on 09.02.2010 during the course of survey u/s. 133A:- Sr.No. Description No. of written pages ID Mark 1. One CPU 2. One register of share application deals 82 PIL/1 3. One file with Misc. documents 72 PIL/2 4. A Bunch of loose sheets 34 PIL/3 The above documents bear ID mark PIL/CPU/1, PIL/1, PIL/2 & PIL/3 are being impounde .....

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in respect of the Bank account was passed under section 132(3) on 15.12.2009. It is not a case where the revenue was not aware of about the bank account of the assessee. The bank account of the assessee was duly disclosed in the return filed by the assessee and for this our attention was drawn towards the copy of the return for the assessment year 2009- 10 which was filed on 26.09.2009 which we verified. It was not a case where the bank account was not disclosed. Once the revenue was aware of ab .....

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ed in the Bank, the relationship between the banker and the customer is one of the debtor and c reditor and not trustee and beneficiary. The banker is entitled to use the monies without being called upon to account for such user. His only liability remains to return the money in accordance with the terms agreed between him and the customer. In view of this proposition of law, it cannot be said that search has taken place at the assessee or at his premises. 10. Attention was also drawn towards th .....

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fficer. No inc riminating material was found during the course of the search. The fact relating to the share capital was al ready on record. Assessment for the impugned assessment year has not been abated. No addition can be made in respect of the unabated assessment which has become final if no incriminating material is found during the course of the search. Reliance was placed in this regard on the decision of the Hon ble Bombay High Court in the case of CIT -vs.- Continental Warehousing Corpo .....

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angi Trade & Holding Pvt. Limited & Others and contended that the case of the assessee is duly covered by the said order. The order of the coordinate bench is binding on this tribunal. 12. We have heard the rival submissions and carefully considered same along with the orders of the authorities below and also perused the material available on record as well as referred to us during the course of hearing. We have also gone through the various case laws cited before us. 13. First we would .....

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nded by the Ld. AR on the basis of the panchnama. For the said bank account a prohibitory order was al ready issued to the banker 15.2.2009 u/s 132(3) and subsequently vide letter dated 11.2.2010 the prohibitory order was revoked. The assessments for the assessment years 2004-05, 2005-06 and 2006-07 have already been completed before the date of search in the case of the assessee. The impugned assessment s were not pending before the assessing officer. 14. We noted that the provision of section .....

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ineffective and the Assessing Officer, in our view, in view of the specific provision of section 153(1)(A) will not be able to issue notice to the bank account of the assessee. A Bank account cannot be a person and, therefore, cannot be an assessee. The word person has been defined in the Income Tax Act under section 2(31), which reads as under:- Section 2(31) - person includes - (i) An individual, (ii) A Hindu undivided family, (iii) A company, (iv) A firm, (v) An association of person or a bo .....

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profits or gains . From this sub-section, it is apparent that a Bank account of an individual cannot be regarded to be a person. The submission of the Ld Sr. Counsel is based on the panchanama not on the basis of the warrant of authorisation. The copy of the warrant of authorisation was not produced by the assessee. Panchanama in our opinion is not the conclusive evidence that the search is not in the name of the assessee or search warrant is not in the name of the assessee. In the similar circ .....

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d from the said form we noted that the warrant of authorisation is in the name of M/s. Edward Supply Pvt. Ltd. In view of this fact, we hold that this submission of the ld. AR does not have any leg to stand. 15. We have gone through the cases relied on by the Sr. Counsel in this regard. We noted that Hon ble Supreme Court in the case of CIT, Haryana, Himachal Pradesh and Delhi & Others reported in 161 ITR 505 held as under:- An amount of ₹ 93,500/- which was, inter alia, seized from th .....

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t the Income Tax authorities could not seize the amount from the Customs authorities under section 132, and that the search and seizure warrants were liable to be quashed and the money returned to the Customs department. On appeal to the Supreme Court: Held, affirming the decision of the High Court, (i ) that on a construction of section 132 and the context in which the words, search , possession , and seizure had been used in the section and the rules, there could not be any order in respect of .....

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sense. It could not be said that, where an authority or a person had retention and custody with the legal sanction behind it, it was not the intention of the Legislature to say that he was not in possession as contemplated in section 132. (iii) That it was true that title was not transferred to the Customs authorities by seizure under the Customs Act. But in the context in which the expressions possession and seizure had been used, it could not be considered to mean that possession was where the .....

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riate authorities. (v) That, in the context in which the expression seizure and search were used, where the location of the property was known to the Government, it could not be said that one Government department could search any other Government department and seize documents, money, etc. . This decision relates to when the amount has already been in the possession of another Government Department i.e. with the Customs Authority and revenue wants to seize the said amount. The Hon ble Supreme C .....

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relationship between the banker and the customer is one of debtor and creditor and not trustee and beneficiary. The banker is entitled to use the monies without being called upon to account for such user, his only liability being to return the amount in accordance with the terms agreed between him and the customer. And it makes no difference in the jural relationship whether the deposits were made by the customer himself, or by some other persons, provided the customer accepted them. There migh .....

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cannot be warrant of authorisation in the name of the bank account of the assessee or in the name of the banker where the assessee holds its bank account. But, in our opinion, this decision will also not assist the assessee under the present facts and circumstances as in the case of the assessee we have already held that the warrant of authorisation is in favour of the assessee not in the name of the account of the assessee with the banker. Therefore, the search cannot be held to be invalid and .....

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iyah Reddy -vs.- ACIT reported in 339 ITR 210 (Karnataka) and Hon ble Rajasthan High Court in the case of CIT -vs.- Smt. Chit ra Devi Soni reported 313 ITR 174(Rajasthan) has taken a view that this Tribunal can consider the validity of the search. SLP in the case of Smt. Chitra Devi Soni filed by the revenue has been dismissed by the Hon ble Supreme Court. This is the settled law in view of the decision of Hon ble Supreme Court in the case of Vegetable Product 88 ITR that if there are cont rary .....

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hat the search had validly been conducted on the assessee. 18. Now, coming to the issue whether any addition can be made on account of share capital and share premium by the assessee, which has already been shown in the regular return filed by the assessee and for which the regular assessment has al ready been completed, let us look into the provisions of the section 153A under Chapter 14 under the title 'Assessment in case of search or requisition'. The provisions of section 153A, 153B .....

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mit for completion of assessment under section 153A and Section 153C of the Act. Section 153C provides for assessment of income of person or other than person in respect of whom warrant or authorisation is issued u/s.132 of the Act. 19. Section 153A which is relevant in this case to decide the issue whether any addition can be made in the case of the assessee, the basis of the incriminating document not found during the course of the search, is extracted below: "153A. Assessment in case of .....

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n respect of each assessment year falling within six assessment years referred to in clause (b) in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139; (b) assess or reassess the total income of six assessment y ears immediately preceding the assessment year relevant to the previous .....

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, as the case may be, shall abate. (2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand reviv ed with effect from the date of receipt of the order of such annulment by the Commiss .....

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such assessment year . 20. From the reading of the provisions of sect ion 153A, it is apparent that this section mandates that where in the case of a person, a search is initiated under section 132 on books of account, other document s or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall issue notice to such person requiring him to furnish within such period as may be specified in the notice, the return of income in respect of each asses .....

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where the assessments are pending on the date of the initiation of the search under section 132 or making the rectification under section 132A shall get abated. This implied that the assessment s which were not pending as on the date of initiation of the search shall not get abated. In view of this clear cut provision, the assessment for the impugned assessment years does not get abated. 21. We noted that on the issue whether any addition can be made in the assessment made u/s.153A, when no inc .....

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l) as is apparent from para 16 of that order. We noted that in the said judgment in para 52 of its order, the Tribunal has held that section 153A comes into operation if a search or requisition is initiated after 31.5.2003. On the satisfaction of this condition, the AO is under obligation to issue notice to the persons requiring him to furnish the return of income of six years immediately preceeding the year of search. This finding implied that the proceedings u/s.153A is not to be restricted to .....

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n to the income that has already been assessed, the assessment u/s 153A will be made on the basis of incriminating material, which in the context of relevant provisions means -(i) books of account, other documents, found in the course of search but not produced in the course of original assessment, and; (ii) undisclosed income or property discovered in the course of search". 22. In view of the decision of Special Bench in the case of All Cargo Global Logistic s Ltd. ( supra), no doubt the a .....

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igh Court held that "obviously an assessment has to be made under this section only on the basis of the seized material ", Even we noted that the Hon'ble Delhi High Court in the case of Anil Kumar Bhatia, 352 ITR 493 (Del), under para 20, it has been observed as under: "even if assessment order had already been passed in respect of one or any of the six relevant assessment years either u/s143(1)(a) or 143(3)prior to the initiation of search, still the AO is empowered to reopen .....

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uisition, the Assessing Officer is empowered to reopen those proceedings and reassess the total income, taking note of the undisclosed income, if any, unearthed during the search". 24. The above observations of Hon'ble High Court, which are though obiter dicta, make it clear that where an assessment order has already been passed for a year or years within the relevant six assessment years, then the AO is duty bound to reopen those proceedings and reassess the total income but by 'ta .....

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he assessment years for which the assessments are already completed on the date of search, shall not be influenced by the items of income other than those based on the material unearthed during the course of search. However, the scope of such determination of total income is different in respect of the years for which the assessments are pending vis-a-vis the years for which assessments are non-pending. The total income shall be determined in respect of assessment year for which original assessm .....

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income' would be determined by considering the originally determined income plus income emanating from the incriminating material found during the course of search. In respect of assessment pending on the date of search which got abated in terms of second proviso to section 153A(1), the total income shall be computed afresh uninfluenced by the fact whether or not there is any incriminating material. 25. We noted that in the case of the assessee, the addition has been made in each of the ass .....

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by the assessee. The said Bank account can also not be regarded to be the incriminating material. Even the Assessing Officer has also not made any addition on the basis of said bank account in each of the assessment years. The banker has made the Pay Order in respect of the balance of the Bank account in favour of the Revenue as per the order of ADIT vide letter dated 11.02.2010, only that Pay Order was seized. It is not the case that the Bank account was not disclosed. Except the Bank account, .....

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the ld. D.R. in respect of the share capital and share premium, therefore, we are of the view that no addition on this account can be made in the case of the assessee in each of the assessment years. We also noted that recently Hon ble Bombay High Court has also approved the decision of the Special Bench, Mumbai in the case of All Cargo Global Logistics Limited -vs.- DCIT, ITAT, Rajkot Bench reported in (2012) 137 ITD 287 (SB)(Mum.). 26. We find that in the case of Commissioner of Income Tax- II .....

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n a position to and mandated to issue notice within the meaning of sub- section (l) of section 153 A. That is because, Chapter XlII within which the powers of search and seizure and powers to requisition books of account are spelt out enable the revenue to take care of cases where it effects a search and seizure. That search and seizure is effected and after the same is effected, books of account, other documents, money, bullion, jewellery or other valuable article or thing is found as a result .....

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documents for that might be useful and or any assets representing withholding or part income or property which has not been or would not have been disclosed for the purpose of the Indian Income-tax Act 1922 or the Income-tax Act of 1961 by any person from whose possession or control they have been taken into custody. This is when the authorities have reason to believe that such powers need to be exercised. Therefore, the fetters and which are to be found in other provisions are removed and a no .....

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or requisition making specific reference to the provisions which enable carrying out of search or exercise of power of requisition that the assessment in furtherance thereof is contemplated. [Para 23] Assessee's reliance upon the Division Bench judgment of this Court rendered in ClT v. Murli Agro Products Ltd. [2014] 49 taxmann. Comm. 172 in that context is, therefore, well placed. [Para 24] The Division Bench outlined the ambit and scope of the powers conferred by section 153A and observed .....

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hat on initiation of proceedings under section 153A, the proceedings pending in appeal revision or rectification proceedings against finalised assessment/reassessment shall not abate. It is only because, the finalised assessments/reassessments do not abate, the appeal revision or rectification pending against finalised assessment/re assessments would not abate. Therefore, the argument of the revenue, that on initiation of proceedings under section 153A, the assessments/reassessments finalised fo .....

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ich has attained finality, unless the materials gathered in the course of the proceedings under section 153A establish that the reliefs granted under the finalised assessment/reassessment were contrary to the facts unearthed during the course of 153A proceedings. If there is nothing on record to suggest that any material was unearthed during the search or during the 153A proceedings, the Assessing Officer while passing order under section 153A read with section 143(3) cannot disturb the assessme .....

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re venue argued before the Division Bench that the power under section 153A can be invoked and exercised even in cases where the second proviso to sub-section (1) is not applicable that the Division Bench was required to express a specific opinion. The provision deals with those cases where assessment or reassessment, if any, relating to the assessment years falling within the period of six assessment years referred to in sub-section (l) of section153A were pending. If they were pending on the d .....

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above conclusions rendered by the Division Bench would bind the instant Court. [Para 29] Even otherwise, Court is in agreement with the Division Bench when it observes as above with regard to the ambit and scope of the powers conferred under section I53A. Even if the exercise of power under section I53A is permissible still the provision cannot be read in the manner suggested by the revenue. Not only the finalised assessment cannot be touched by resorting to those provisions, but even while exer .....

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n' appear in the substantive provision and the provisos. That would throw light on the issue of applicability of the provision It being enacted to a search or requisition that its construction would have to be accordingly. That is the conclusion reached by the Division Bench in Murli Agro (supra). These are the conclusions which can be reached and upon reading of the legal provisions in question [Para 30] Therefore, the Special Bench's understanding of the legal provision is not perverse .....

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ed a conclusion different than the view taken by the Division Bench [Para 35]. 27. Similar view has been taken by the Hon ble ITAT, Panaji Bench, Panaji in ITA No. 112/PNJ/2014 in the case of Sunita [54 taxmann.com 250; 68 SOT 98. We have gone through the decision of B Bench of this Tribunal in ITA Nos. 1533 to 1537/Kol./2012 in the case of Patangi Trade & Holdings Pvt. Ltd. dated 12.09.2014. We noted that in this decision, even though the ld. A.R. has relied on the decisions of the Special .....

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457 (ITAT, Mumbai); ACIT -vs.- Hindustan Storage & Dist ribution Co. Ltd. in IT(SS)A. No. 133/Kol/2011 (Kolkata, ITAT), but the Tribunal has not considered these decisions at all. The Tribunal has dealt with only the issue about the validity of the search when the Panchanama is in the name of the Bank account of the assessee.. The issue whether the addition in an assessment framed under section 153A can be made on the basis of the incriminating material found during the course of the search .....

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ld. D.R. In view of the aforesaid discussion and the decision of the Hon ble Special Bench, Bombay High Court, as well as Hon ble Delhi High Court, we confirm the order of the CIT(Appeals) deleting the addition made in each of the assessment years as we hold that the Assessing Officer was not correct in law in making the addition in the assessment made under sect ion 153A read with section 143(3) when no incriminating material was found during the course of the search in respect of the addition .....

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