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2016 (1) TMI 988 - ITAT DELHI

2016 (1) TMI 988 - ITAT DELHI - TMI - Validity of the jurisdiction u/s 153C - Held that:- In the present case no incriminating material was unearthed during the course of search or requisition of document or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. We, therefore, by keeping in view the ratio laid down by the Hon’ble Jurisdictional High Court in the aforesaid referred to c .....

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nce is in the amount of addition made by the AO. - Decided in favour of assessee. - ITA No. 3078/Del/2012, ITA No. 3079/Del/2012, ITA No. 3080/Del/2012, ITA No. 3081/Del/2012, ITA No. 3653/Del/2012 - Dated:- 1-1-2016 - Sh. N. K. Saini, AM And Smt. Beena Pillai, JM For The Assessee : Sh. S. Agarwal, Adv. & Prakash gupta, FCA For The Revenue : Sh. Ramesh Chand, CIT DR ORDER Per Bench: These appeals by the assessee for the assessment years 2004-05, 2006-07 and 2008-09 and the Cross appeal by th .....

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sing Officer and confirmed by Ld. CIT(A) is not only bad in law but also against the facts of the case. 2. The Ld. CIT(A) is erred under the law while holding that AO has a valid jurisdiction u/s 153C of the Act particularly in view of following reasons:- i) as the same has been issued beyond the time limit prescribed under the Act. ii) The Ld. AO has recorded any satisfaction before issuance of the notice. iii) The re-assessment proceedings u/s 153A r.w.s. 153C of the Act can be with reference .....

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any comment of our part. 5. Vide ground No. 2, the assessee has challenged validity of the jurisdiction u/s 153C of the Income Tax Act, 1961 (hereinafter referred to as the Act). 6. Facts of the case in brief are that the assessee filed the original return of income on 04.08.2004 declaring net taxable of income of ₹ 2,47,000/- which was processed u/s 143(1) of the Act. The assessee is the father of Sh. Amit Jain and Sh. Dhiraj Jain, who are directors of M/s Mahagun (India) Pvt. Ltd., in w .....

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ssessee had raised unsecured loan of ₹ 4,00,000/- from Sh. Sanjeev Kumar Gupta who filed an undated confirmation but no evidence had been filed with regard to the Income Tax Return filed by the said person, the source of the income of the loanee and the source of giving the said loan. The AO treated the unsecured loan amounting to ₹ 4,00,000/- in the name of Sh. Sanjeev Kumar Gupta as unexplained investment of the assessee and added the same to his income. 7. Being aggrieved the asse .....

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AT Mumbai Bench in the case of Anil P. Khimani Vs DCIT (2010) TIOL 177 ITAT Mumabi B Bench. The ld. CIT(A) also held that the seizure of incriminating material was not the condition for invoking the provisions u/s 153C r.w.s. 153A, therefore, the AO rightly initiated the proceedings u/s 153C of the Act against the assessee. 8. Now the assessee is in appeal. The ld. Counsel for the assessee at the very outset stated that this issue is squarely covered in favour of the assessee vide order dated 28 .....

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no incriminating material pertaining to the assessee was unearthed during the course of search. The AO had made the additions on account of unsecured loans, the details of which were already available. It is also not brought on record to substantiate that any document pertaining to the loan from Sh. Sanjeev Kumar Gupta was found during the course of search or the assessee concealed any income or furnished inaccurate particulars of income which later on were found during the course of search. On .....

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AYs immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned si .....

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n that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to c .....

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