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2016 (10) TMI 160 - ITAT DELHI

2016 (10) TMI 160 - ITAT DELHI - TM - Assessment u/s 153A - absence of satisfaction note - Held that:- Entries in the name of the assessee as contained in the books of accounts of Sh. B.M. Gupta, are not the books of accounts of the assessee and, therefore, the books of accounts does not belong to the assessee and, thus we approve the action taken by the learned Commissioner of Income-tax (Appeals) in annulling the assessment. The documents on the basis of which proceedings under section 153C of .....

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llowing 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 initiated do not belong to the assessee. iii. Whether on the facts and in the circumstances of th .....

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ct ) was conducted on 15/12/2014 in the cases of B.M. Gupta Group . During the course of search proceedings, certain documents and books of accounts were found and seized. In the said books of accounts, entries containing name of the assessee were found. The Assessing Officer of Sh. B.M. Gupta recorded satisfaction note under section 153C of the Act and on the basis of the said satisfaction note, the Assessing Officer issued notice under section 153A r.w.s. 153C of the Act and the assessment was .....

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C 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 .....

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resentative of the assessee, relying on the order of learned Commissioner of Income-tax (Appeals), submitted that similar issue came up before consideration in the case of other family members and in those cases also like additions are made in the backdrop of similar satisfaction recorded on the basis of the entries found in the record of Sh. B.M. Gupta and the Tribunal in ITA Nos. 37 to 40/Del/2010, in the case of Sh. Ankit Gupta and ITA No. 43 to 44/Del/2010 in the case of Smt. Abha Gupta, uph .....

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e-tax (Appeals) in the impugned order, however, for the purpose of clarity, we are reproducing the same as under: 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 .....

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d 1 Shri Rajeev Gupta 2000-01 21 2,16,000 2 Ms. Abha Gupta 2002-03 10 1,33,067 3 -do- 2003-04 25 88,967 4 Shri Sandeep Gupta 2000-01 70 1,72,703 5 -do- 2002-03 20 2,52,805 6 -do- 2004-05 5 95,900 7 Sh. Ankit Gupta 1999-00 5 51,667 8 -do- 2000-01 300 19,72,399 9 -do- 2001-02 334 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, .....

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the Department, these cases were centralized with the main case of Shri B.M. Gupta. In view of the above facts based on seized documents and coupled with the statements of Shri Rajeev Gupta and Shri Ram Avtar Singhal, I am satisfied that the above entries found from the documents seized during the course of search in Shri B.M. Gupta group of cases belong to the above mentioned persons. Hence, action u/s I53C of the Income Tax Act, 1961 is called for in the cases of above noted persons. Who have .....

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ial premises of Sh Brij. Mohan Gupta and his Accountant Sh. Ram Avtar Singhal. During the course of the search operations, documents seized indicate the name of the persons who have given cash loans with dates, period 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 mo .....

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ownership of interest, if it is to be permitted that the assets belong to the assessee. In the instant case, the documents seized during the search cannot be termed to be indicating any limited interest of the ownership of the assessee in such documents. The language used in section 153C of the Act is materially different from the language used in section 158BD of the Act. As per Section 158BD, if any undisclosed income relates to other person, then action agains5t such other person can be take .....

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ed u/s 153C of the Act are not as per the law. The assessment made u/s 153A r.w.s. 153C of the Act cannot stand of its own and hence, the same is cancelled. 7. The assessee has submitted copy of the decision of the Tribunal in the case of Sh. Ankit Gupta, in ITA No. 37 to 40/Del/2010 and Smt. Abha Gupta in ITA No. 43 and 44/Del/2010. We find that the name of both Sh. Ankit Gupta and Smt. Abha Gupta are appearing in the satisfaction note along with the assessee, in whose name the entries were fou .....

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