TMI Blog2016 (10) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ACCOUNTANT MEMBER For The Appellant : Smt. Renuka Jain Gupta, CIT(DR) For The Respondent : Sh. B.L. Gupta, ITP ORDER PER O.P. KANT, A.M.: This appeal by the Revenue is directed against order dated 01/04/2010 of learned Commissioner of Income-tax (Appeals)-III, New Delhi for assessment year 2000-01, raising following grounds: i. Whether on the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals) has erred in law and on facts in annulling the assessment made u/s 153C. ii. Whether on the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals) has erred in law and on facts by holding that the seized documents on the basis of which proceedings were i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries related to the assessee are found, are not belonging to the assessee and, therefore, proceedings under section 153C of the Act cannot be invoked until and unless any money, bullion jewellery or books of accounts or documents belonging to the assessee are found and seized during the course of search at the premises of said B.M. Gupta or his Accountant, Sh. Ramavtar Singhal. After considering the submission of the assessee and the precedents cited, the learned Commissioner of Income-tax (Appeals) came to the conclusion that in the circumstances, proceedings under section 153C of the Act were not justified and, hence, he annulled the assessment. Aggrieved, the Revenue is before us raising the grounds as reproduced above. 3. Addressin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Action u/s 132 of l.T. Act, 1961 was taken on 15.12.2004 in Shri Gupta group of cases at the residence and business premises of Shri B.M. Gupta i.e. 2281 2282 Gali Hinga Beg, various lockers owned by his family members, at the residence of Shri Ram Avtar Singhal, Accountant of Shri B.M. Gupta and M/s Varad Builders Pvt. Ltd. During the course of block assessment proceedings for the block asstt. year 1999- 2000 to 2004-05 in the case of Shri B.M. Gupta and examining the documents /books of accounts seized from his residential and business premises as also seized from the residence of Shri Ram Avtar Singhal, Accountant of Shri Brij Mohan Gupta (Annexures A-5, A-50 A-79 of party H-4), it has been noticed that there are entries (cash advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 334 18,10,642 10 Shri Manoj Gupta 2000-01 163 1,53,351 11 -do- 2002-03 104 25,618 It is also found from seized records coupled with the contents of statements of Shri Rajeev Gupta, son ofShri B.M. Gupta and Shri R.A. Singhal, Accountant ofShri B.M. Gupta that the figures of cash amount of above advances invested by these persons through Shri B.M. Gupta, who is doing money lending business and earning commission on such advances, are in lacs. It may also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of loan, interest and commission earned, document on the basis of which proceedings u/s 153C of the Act have been initiated does not belong to the appellant These documents have been prepared by Sh. B.M. Gupta for the purpose of his business. The term belonging implies something more than the idea of casual association. It involves notion of continuity and indicates more or less intimate connection with the persons over a period of time. The documents seized during the search record the transactions of varies persons. The expression belonging to the assessee connotes both the complete ownership and limited ownership of interest. Of course, belonging to is a capable of connoting interest which is less than absolute perfect legal title. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, in whose name the entries were found recorded in the books of accounts of Sh. B.M. Gupta. In both of these cases, the Tribunal has held that learned Commissioner of Income-tax (Appeals) was correct in holding that the documents on the basis of which proceedings under section 153C of the Act had been initiated, did not belong to the assessee and accordingly upheld the order of learned Commissioner of Income-tax (Appeals) in annulling the assessment. The relevant part of the decision in the case of Ankit Gupta (supra) is reproduced as under: 10. As evident from the language of section itself, it is the books of account per se about which the Assessing Officer needs to be satisfied as belonging to a person other than a person p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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