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2015 (12) TMI 345 - ITAT MUMBAI

2015 (12) TMI 345 - ITAT MUMBAI - TMI - Validity of search conduced in the hands of the assessee under section 132 - Held that:- We notice that the only reason on which the assessee is questioning the validity of search is that the search action has not resulted in unearthing of any incriminating material or undisclosed income. Validity of search could not be questioned on the above said ground. It is not necessary that the search action should always result in unearthing of any incriminating ma .....

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nt case, the assessee has voluntarily offered certain credits found in his bank account as additional income, since he felt that the source of those credits could not be explained by him. Hence, the basis of offer of additional income is the bank account of the assessee. There should not be any dispute that the availability of undisclosed income, if any, will be within the personal knowledge of the assessee, even if no incriminating material was found during the course of search. The provisions .....

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u/s 140A of the Act is called self assessment tax. The assessee, herein, has voluntarily identified the “undisclosed income” from out of his bank account, though the same has not come to the notice of the search officials. Accordingly, after having identified the undisclosed income and voluntarily offered the same, the assessee is precluded from putting a claim for exclusion of the same. The basis for offering the additional income is the bank account of the assessee and hence it is not correct .....

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ues urged in these appeals are identical in nature, they were heard together and are being disposed of by this common order, for the sake of convenience. 2. The grounds urged by the assessee in both the years give rise to the following two issues: a) Validity of search conduced in the hands of the assessee under section 132 of the Act; and b) Validity of accepting the additional income disclosed by the assessee in the return of income filed u/s 153A of the Act. 3. The facts relating to the issue .....

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e return filed u/s 153A Additional income offered 1 2006-07 4,12,916 1,03,553 2 2007-08 3,78,660 1,91,139 The AO completed the assessment of both the years accepting the income returned filed by the assessee. 4. It appears that the revenue did not unearth any incriminating material or undisclosed income during the course of search operations. Hence, the assessee challenged the assessment orders by filing appeals before the ld. CIT(A), wherein he contested the validity of search action taken u/s .....

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search action has not resulted in unearthing of any incriminating material or undisclosed income, which would show that the Revenue has initiated search proceedings under section 132 of the Act without complying with the conditions prescribed u/s 132 of the Act. The ld. AR has placed reliance on the decision of Hon ble Karnataka High Court in the case of C. Ramaiah Reddy V/s ACIT (2012) 20 taxmann.com 781 (Kar) in order to submit that the Tribunal is empowered to decide the issue relating to val .....

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venue has refused to furnish relevant details. However, we notice that the only reason on which the assessee is questioning the validity of search is that the search action has not resulted in unearthing of any incriminating material or undisclosed income. In my view, the validity of search could not be questioned on the above said ground. It is not necessary that the search action should always result in unearthing of any incriminating material or undisclosed income. Even if no incriminating ma .....

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s that both the years under consideration fall in the category of concluded proceedings , in which case, the concluded assessment would not abate. The Special bench of the Tribunal in the case of All Cargo Global logistics Ltd (137 ITD 287) and also the Hon ble Jurisdictional Bombay High Court in the case of Murli Agro Products Ltd have held that the additions, if any could be made in the case of concluded proceedings only on the basis of incriminating materials. We have earlier noticed that the .....

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tion was followed. The ld. A.R also placed his reliance on the decision rendered by the Hon ble Supreme Court in the case of CIT Vs.V.Mr.P.Firm (1965)(56 ITR 0067), wherein the Hon ble Supreme Court held that if a particular income is not taxable under the IT Act, it cannot be taxed on the basis of estoppels or any other equitable doctrine. 9. However, we notice that the assessee has given following explanation in the return of income filed for both the years under consideration in pursuance of .....

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equired to file return of income, even if he had filed return of income for that year under regular provisions of the Act. The return of income so filed by the assessee shall be considered by the AO and thereafter assessment order shall be passed by him. At the time of filing of return of income, it is the responsibility of the assessee to disclose all the income relating to a particular year on the basis of results of search operations. In the instant case, the assessee has voluntarily offered .....

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