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2018 (4) TMI 633

the AO was not justified in initiating action against the assessee under section 153A read with section 153C. The hand written paper i.e. page no. 35 does not fall within the meaning of books of accounts or document and does not belong to the assessee, hence, the proceedings U/s 153C would not have been invoked against the assessee. Thus, the assessee has established before the Assessing Officer as well as the CIT(A) that the document does not belong to the assessee. The issue herein is squarely covered by the decision of the Hon’ble Delhi High Court in Renu Constructions (2017 (9) TMI 670 - DELHI HIGH COURT), therefore, the order of the CIT(A) is set aside and appeal of the assessee is allowed - ITA No.3227/DEL/2013 And ITA No.3228/DEL/2013 - Dated:- 6-4-2018 - MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND SH. PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Appellant : Sh. Ashwani Taneja, Adv And Sh. Shantnu Jain, Adv For The Respondent : Sh. S. S. Rana, CIT DR ORDER PER SUCHITRA KAMBLE, JM This appeal has been filed by the assessee against the order dated 11/03/2013 passed by CIT(A)-XXXIII, New Delhi. 2. The grounds of appeal are as under:- 1. On the facts and in the circumstances of the .....

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Y. 06-07. 3. The assessee is a Private Limited Company engaged in the business of real estate. However, during the year under consideration, no such activity has been shown by the assessee. The ACIT, Central Circle-14, New Delhi vide letter dated 23.09.2008 forwarded a Satisfaction Note wherein he informed that a search seizure operation was carried out at the residential premises of Sh. Narender Kumar of Surya Properties at 5/28, Chiranjiv Vihar, Ghaziabad on 22.09.2005. Documents marked as Annexure A-1 to A-23 were seized during the search. He also recorded in his satisfaction that Pages 35 to 56 of Annexure 1-9 belong to this assessee i.e. M/s. Shree Radhey Technologies Pvt. Ltd. Accordingly, the case of the Assessee company was assessed as per the provisions of Section 153C of the Income Tax Act, 1961. After receiving the copies of the material, same was examined and it was found that these documents actually belong to the assessee i.e. M/s. Shree Radhey Technologies Pvt. Ltd. based on this, vide order sheet entry dated 25.09.2008 independently recorded the satisfaction and accordingly, Notice u/s 153C of the Income Tax Act, 1961 was issued to the assessee on 07.11.2008 & .....

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than action under said section can be taken against that person. In the instant case the books of account or documents did not belong to the assessee and therefore, the AO was not justified in initiating action against him under section 153A read with section 153C. Therefore, the hand written paper i.e. page no. 35 does not fall within the meaning of books of accounts or document and does not belong to the assessee, hence, the proceedings U/s 153C would not have been invoked against the assessee. A taxing statute, as is well known must be construed strictly. In Sneh Enterprises V. Commissioner of Customs (2006)7 SCC 714, 721, it was held while dealing with a taxing provisions, the principle of strict interpretation should be applied. The court shall not interpret the statutory provision in such a manner which would create an additional fiscal burden on a person. It would never be done by invoking the provisions of another act possible; the court ordinarily would interpret the provisions in favour of a taxpayer and against the revenue. The Ld. AR relied upon the decision of the Hon ble Delhi High Court in case of CIT vs. Renu Constructions Pvt. Ltd. (ITA No.499/2011 dated 06.09.201 .....

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of the Assessment Proceedings through reply demonstrated that the said documents do not belong to the assessee. The said submissions was not taken into consideration in consonance with the documents before the Assessing Authorities. The reliance of the Ld. AR on the decisions of the Hon ble Delhi High Court in case of Renu Constructions (Supra) is relevant and applicable in the present case. The Hon ble Delhi High Court held as under: 6. Mr. Manchanda, learned Senior Standing Counsel appearing for the Revenue, places reliance on decisions of the this Court in Principal Commissioner of Income Tax v. Super Malls Pvt. Ltd., [2017] 393 ITR 557, Principal Commissioner of Income Tax Central Circle-II v. Satkar Fincap Ltd. [2017] 393 ITR 378 and Principal Commissioner of Income Tax (Central-2) v. Nau Nidh Overseas Pvt. Ltd. [2017] 394 ITR 753 (Delhi) to urge that, notwithstanding the fact that the search in the present case took place prior to the amendment to Section 153C of the Act with effect from 1st June 2015, it is sufficient for the purpose of initiation of proceedings under Section 153C of Act, that the seized documents pertained to the Assessee and did not have to be shown at th .....

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the Revenue. 12. Consequently, Question No. 1 in ITA Nos. 499 of 2011 and ITA Nos. 32 and 35 of 2012 is answered in the affirmative, i.e. in favour of the Assessees and against the Revenue. In so far as the Revenue has been unable to show that the impugned order of the ITAT is perverse, Question No. 3 is answered in the negative, i.e. in favour of the Assessee and against the Revenue. The solitary question framed in ITA Nos. 41 and 1265 of 2017 is answered in the affirmative i.e. in favour of the Assessee and against the Revenue. 13. The appeals are accordingly dismissed. In the instant case the books of account or documents did not belong to the assessee and therefore, the AO was not justified in initiating action against the assessee under section 153A read with section 153C. The hand written paper i.e. page no. 35 does not fall within the meaning of books of accounts or document and does not belong to the assessee, hence, the proceedings U/s 153C would not have been invoked against the assessee. Thus, the assessee has established before the Assessing Officer as well as the CIT(A) that the document does not belong to the assessee. The issue herein is squarely covered by the decis .....

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