TMI Blog2021 (9) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue to the file of A.O. with a direction to grant one more opportunity to the assessee to substantiate its case by filing the requisite details and explaining each and every transaction including the credits in the Bank Account from Auto Sweep Account. Wherever double addition has been made on account of Bank interest, dividend income and share application money etc., the A.O. shall, upon satisfaction, delete the same. The A.O. shall also consider the application of proviso to section 68 w.e.f. 01.04.2013 in respect of share application money received from family members relatives of directors. A.O. shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. The assessee is also hereby directed to appear before the A.O. and substantiate its case by producing the requisite details - Grounds raised by the Assessee are allowed for statistical purposes. - ITA.Nos.5296, 5297, 5298, 5299, 5300, 5301 & 5302/Del./2017 - - - Dated:- 3-9-2021 - Shri R.K. Panda, Accountant Member And Ms. Suchitra Kamble, Judicial Member For the Assessee : Shri Mayank Patawari, C.A. For the Revenue : Smt. Sushma Singh, CIT-DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been credited in its Bank account. In the absence of any evidence to his satisfaction, the A.O. made addition of the same to the total income of the assessee. Thus, the A.O. determined the total income of the assessee at ₹ 1,43,49,149/- as against the returned income of ₹ 39,887/-. 2.2. Similar additions have been made by the A.O. for other assessment years which are as under : I.T.A.No. A.Y. Addition made by A.O. Amount in Rs. 5297/D/2017 2007-2008 Unexplained Bank Credits ₹ 72,44,432/- Unexplained Share Capital ₹ 6,33,000/- Unexplained Share Premium ₹ 37,98,500/- 5298/D/2017 2008-2009 Unexplained Bank Credits ₹ 1,42,95,922/- Unexplained Share Application money ₹ 72,09,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the A.O. u/s 153A read with Section 153C is bad in law and liable to be quashed on account of lack of jurisdiction, in view of provision of proviso to Section 153C(1) of the Act. 4. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law in rejecting the contention of the assessee the proceedings initiated under Section 153C are bad in law and without jurisdiction in the absence of any incriminating material belonging to the assessee being found during the course of the search. 5. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law in rejecting the contention of the assessee that the proceedings initiated under Section 153C and the assessment framed under Section 153C is bad and liable to be quashed in the absence of any satisfaction being recorded by the AO of the searched person that the incriminating material belonging to the assessee was found during the course of the search. 6. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the addition of an amount of ₹ 38,10,000/- made by A.O. on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. He submitted that additions on account of Bank interest, dividend income and share application money received through banking channels have been made which amounts to double addition since these were already taxed. Further credits in the Bank account from Auto Sweep Account has also been added by the A.O. despite the fact that the Sweep Account is merely a credit in the Current/Savings Account out of the Fixed Deposit Account of the assessee. It is merely a contra entry. However, the lower authorities without understanding the same made the additions. He submitted that the primary evidence of proving the genuineness of the share application money received from relatives has been disregarded by the Ld. CIT(A) despite not drawing any adverse inference. He submitted that provisions of section 68 cannot be applied to such transactions since the amendment took place w.e.f. 01.04.2013. He accordingly submitted that in the interest of justice the matter may be restored back to the file of A.O. with a direction to decide the issue afresh, after considering the explanation given by the assessee for each and every transaction. 4. The Ld. D.R. on the other hand, heavily relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p Account despite the fact that the Sweep Account is merely a credit in the Current/ Savings Account out of the Fixed Deposit Account of the assessee, disregarding the explanation given by the assessee. Further it is also his submission that additions on account of Bank interest, dividend income and share application money received through Banking channels have been made, which were already taxed and therefore the same amounts to double addition. It is also his submission that one more opportunity may be given to the assessee to explain each and every transaction to the satisfaction of the either of the lower authorities which are already on record. Considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of A.O. with a direction to grant one more opportunity to the assessee to substantiate its case by filing the requisite details and explaining each and every transaction including the credits in the Bank Account from Auto Sweep Account. Wherever double addition has been made on account of Bank interest, dividend income and share application money etc., the A.O. shall, upon satisfaction, d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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