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TMI Blog2021 (10) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are that the assessee is a part of Tirupati Sun- World Group of Companies (TSGC) engaged in the business of pharmaceutical manufacturing, formulation of tablets, capsules, oral powder, oral liquids, manufacturing of cylinders and construction business at various sites of Gautam Budh Nagar, Paonta Sahib (HP), Muzaffarnagar etc. A search and seizure operation u/s. 132 of the Income-tax Act, 1961 ("the Act") was conducted on 11.11.2014 on the premises of the assessee comprising TSGC, which is a diversified group with multiple business interests, established in 1980. Notice u/s. 153C of the Act was issued on 02.07.2016, pursuant to which, the assessee filed the return of income showing nil income for the assessment year 2010- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain the mail till the assessee claims the same. Since the assessee does not seem to have adopted any of these methods, we are of the considered opinion that no time could be granted. Basing on the record we proceed to hear the counsel for Revenue and decide the matter on merits. 5. It is the argument on behalf of the Revenue that in the satisfaction note, the learned Assessing Officer had clearly brought out all the facts and circumstances, which indicated the names of the entities including the assessee, appearing on seized documents were in the nature of accommodation entries only for doubting the undisclosed income of the Tirupati Sunworld Group Companies and hence such documents constituted incriminating material for the purpose of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT(A), argument of the assessee was that the satisfaction is not recorded by the Assessing Officer, as envisaged in section 153, seized documents do not belong to the assessee, no incriminating document was found and seized, inasmuch as, the alleged seized documents are part and parcel of regular books of accounts and cannot be treated as incriminating documents, and that the decision of the Hon'ble Apex Court in the case of CIT vs. Sinhgadh Education Society (2017) 84 taxman.com 290 (SC) is applicable to the facts of the case, inasmuch as, there is no co-relation of the reopening of the matter with the seized documents qua the assessment year under consideration. 7. We have gone through the record. The note of satisfaction reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, Ground Floor, Sector-4, Noida, UP in the case of M/s Sunworld Developers Pvt, Warrant u/s. 132 (1) of the Act was executed and during the course of search incriminating documents were found and seized such as A-4 page No-43, A-5 Page No-96, 98, A-6, Page 52, to 54 & A-12, page 52 to 58 etc. During the course of Search at the residential premise of Mukul Gupta & YK Gupta at A-76 Sector 76,Noida , A-2 Page No-10 etc. The cases of this group are interconnected and required deep investigation to arrive at a logical conclusion. As such for taking a logical conclusion in this group of cases, every single seized document and entry appearing in the seized documents requires deep scrutiny and has its impact on the other cases of the group. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. It reflects opening balance of different a/c, transaction Debit/Credit and closing balance as on 31.3.2014. All the transaction are recorded in the regular books of accounts. iv) A-4/Paqe 43: A-4 Page 43 contains long term advances from related parties as on 31.3.2014 of list of annexure forming part of notes of M/s Sundaram IT Parks Pvt. Ltd. It is part of balance sheet set for 31.3.2014 which is submitted to income tax department/Registrar of Companies. There is nothing incriminating at all. v) A-5/Paqe 96: It is a drafted computation of income before finalization of balance sheet and Profit & Loss a/c for 31.3.2014 and there is nothing incriminating. On finalization of balance sheet 31.3.2014 again the computation was prep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goes unchallenged and un-impeached. 11. In CIT vs. Sinhgadh Education Society (supra), Hon'ble Supreme Court held that one of the jurisdictional conditions precedent to the issue of a notice u/s. 153C of the Act is that money, bullion, jewellery or other valuable article or thing or any books of account or document must be seized or requisitioned for the relevant assessment year for issue of notice u/s. 153C of the Act. Learned CIT(A), therefore, observed that in order to reopen the assessment of other person u/s. 153C of the Act for any assessment year earlier to the year of search, not only a direct corelation with the document is required, but also that such documents must be incriminating in nature, namely, such documents found as a re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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