9911796707
TMI Blog2016 (1) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the assessee were seized vide annexure A/SA's/02, dated 07/11/2007. In response to the statutory notices, the assessee filed the following returns of income: AY Return filed on Income admitted 2002-03 29/10/2008 84,070 2003-04 29/10/2008 77,930 2004-05 29/10/2008 85,820 2005-06 29/10/2008 1,36,130 2006-07 29/10/2008 (-)3,43,788 2007-08 29/10/2008 2,70,550 2008-09 22/09/2008 1,55,58,570 3.1 AO found that the assessee had made the following household withdrawals along with his father and uncle: A.Y. Withdrawals in Anil Kumar Agarwal Withdrawals in Satyanarayana Agarwal Withdrawals in Chanderpal Agarwal Total 2002-03 5,000 17,610 11,010 33,620 2003-04 7,410 26,100 8,000 41,510 2004-05 9,902 27,050 36,164 73,116 2005-06 37,981 23,725 25,665 87,371 2006-07 11,617 33,000 15,112 59,729 2007-08 19,750 27,319 24,000 71,069 2008-09 19,574 20,000 22,050 61,804 3.2 Since the withdrawals made by the assessee were very low, the AO made the addition of Rs. 30,000/- on account of low household withdrawals. 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). 5. Before CIT(A), the assessee conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rused the material facts on record as well as the orders of revenue authorities. We find that the issue in dispute is squarely covered by the decision of the ITAT, Hyderabad Bench in case of Sri Anil Kumar Agarwal and Sri Chanderpal Agarwal (supra) wherein the coordinate bench held as follows: "6. We have considered the submissions and perused the order sheet placed on record. Even though, the AO did mention that there was some incriminating material, there is no satisfaction recorded about the explanation of the income from the person who was searched and how the document is relevant in assessee's case. The order sheet entry only indicate that 'during the course of search incriminating material regarding undisclosed income of the assessee was found'. This statement is common for both assessees. This bland statement cannot be considered as satisfaction for initiation of proceedings u/s 153C as it does not indicate the nature of seized material and how income is assessable in assessee hands. As seen from the orders also, there is no discussion about any incriminating material or incomes to be assessed under the provisions of Section 153C. Provisions of Section 153C are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year-- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. 19. Substituted for "Notwithstanding anything contained in section 139, section 147, section 148,section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in sub- section (1) of section 153A. (emphasis supplied) It is therefore clear that firstly satisfaction has to be recorded by the Assessing Officer who conducted search, that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in Section 153A of the Act. Thereafter, the Assessing Officer having jurisdiction over third party on receipt of the seized material or books of accounts or document being handed over to him shall record his own satisfaction after examining the same independently without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October 2001 and before he left for UK, he handed over his personal belongings to his friend for sale and the amount of Rs. 74,980/- sent by his friend was shown in the capital account and treated as 'income of assessee'. As can be seen from the order of AO, and CIT(A), they only disbelieved assessee's version. Since this issue does not arise out of any incriminating material and as assessee has shown the amount as a receipt in 2002-03 itself in the capital account, we are of the opinion that addition cannot be made in the proceedings U/s. 153C, without any evidence to contrary to disbelieve assessee's contentions. Be that as it may, as we have already held that initiation of proceedings U/s. 153C are itself bad in law, these issues become academic in nature. 10. Assessee relied on coordinate bench decision in the case of Vinod Kumar Agarwal, another assessee's group case. Therein assessments were made U/s. 153A and parameters for considering the jurisdiction are different. In this case we have already examined the proceedings in the light of jurisdiction high Court judgment. Following the same, the proceedings U/s. 153C initiated in this assessee's case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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