9911796707
TMI Blog2018 (3) TMI 1923X X X X Extracts X X X X X X X X Extracts X X X X ..... as specifically required to furnish the details of these entries. But the assessee offered no explanation about the nature and source of credits in the bank account during the year under consideration. The details of unexplained credit entries as recorded in the order of the Assessing Officer is as under:- "Standard Chartered Bank (A/c No. 62210264985) & PNB A/c No.0255000109288194" 5. Thus, an amount of Rs. 46,35,148/- was added back to the income of the assessee as unexplained credits during the year under consideration. Vide order sheet entry dated 30-03-2014, the assessee was asked to show-cause why the sum of all the unexplained credits in the bank accounts of the assessee be not added back as undisclosed income, in response to which assessee filed reply. On going through the explanation filed by the assessee, the Assessing Officer came to the conclusion that the assessee has not satisfactorily explained the nature & source of credits in its bank account. Therefore, an amount of Rs. 46,35,148/- was added back to the income of the assessee for the year under consideration. 6. The assessee thereafter preferred an appeal before the ld. CIT(A) and before the ld. CIT(A) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y 2011- 12 for relevant year disclosing income of Rs. 2780500/-. It is submitted that requisition u/s 132 was made on 29/12/2011 by handling over cash of Rs. 4 lacs to the Authorized Officer u/s 131(1A) of the I.T Act. The investigation was falling in F.Y 11-12 relevant to A.Y 2012-13. Later on the A.O issued notice u/s 153A of the I.T Act for A.Y 2006-07 to 2012-13. That vide the impugned assessment order no addition has been made on this ground by the Id. A.O and the submissions given by appellant are accepted. No addition has been made in the hands of the company styled M/s. Bajaj Steels & Industries Ltd. to whom the cash belongs. Source of Rs. 4 lacs has been accepted in the hands of assessee as no addition was made in the hands of assessee. Further it has been held by the jurisdictional High Court in the case of Premier Car Sales Ltd., vs. DGIT (Inv) [2013] 40 taxmann.com 19 (Allahabad) that where the seize the amount belongs to company and not to employee/agent of company, the assessment proceeding u/s 153A against the latter cannot be made. In view of the above facts and case law relied upon the assessment proceeding initiated and order passed u/s 153A/143(3) of the I.T. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruling of Hon'ble Allahabad high court in the case of Premier Car Sales Ltd. v. Director General of Income-tax, Investigation (North) (Supra) I am of the view that the proceedings for the block period were not required to be initiated in the case of the appellant especially when no such proceedings were initiated against the company. Moreover on the date of issuing of notice u/s 153A of the Act by AO for these six years, no assessments of the assessee were pending and no assessments were abetted. In such a situation AO could only assess or reassess the income of the assessee on the basis of only seized documents and not otherwise as per the settled legal position. In the present case no such incriminating document was found during the search operation by police in Punjab that could warrant the additions on account of unexplained bank entries and that too without giving the assessee a reasonable opportunity of being heard. Moreover the entries now stand explained in light of the information received from the bank and also submitted by the appellant. Legal position has been summarized in a recent judgement of Hon'ble Delhi High Court in the case of CIT (CENTRAL)-III ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents 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. "38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07.On the date of the search the said assessments already stood completed. Since no incriminating material was unearthed during the search, no additions could have been made to the income already assessed. "39. The question framed by the Court is answered in favour of the Assessee and against the Revenue, 40. The appeals are accordingly dismissed but in the circumstances no orders as to costs." After careful consideration of submissions and records produced before me, I am of the view that A.O. was not justified to treat the credit entries appearing in the bank account as unexplained cash credits on any ground. Since there were no pending assessments at the time of issuance of notice u/s 153A of the act, completed assessments could not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
