Case Law Details
ACIT Vs Soniz Procon (P.) Ltd. (ITAT Ahmedabad)
ITAT Ahmedabad held that invocation of proceedings u/s 153C of the Income Tax Act unsustainable as AO has not put on record that material seized during the course of third party search belongs to the assessee.
Facts- The assessee is engaged in the business of development and construction of residential and commercial complexes. The assessee follows Project completion method of accounting and filed its Returns of Income of the various projects undertaken by the assessee.
There was search action u/s. 132 of the Act, carried out in the case of Shri Sanket Jitendrabhai Shah, wherein MS Axel file named “76 flat list” was found. As per the AO, the above sheet included the details of 76 flats in Vibrant Homes Project carried out by the assessee. Parallelly there was Survey action u/s. 133A of the I.T. Act was conducted in the case of the assessee and no discrepancy was found neither in the books of accounts nor unaccounted cash was found in the business premises of the assessee but certain loose papers were impounded during the course of survey.
Subsequently, on the basis of the search proceedings carried out in the case of Shri Sanket Jitendrabhai Shah, proceedings u/s. 153C of the Act were initiated in the case of the assessee and additions on account of unaccounted income u/s. 69A of the Act by way of suppressed on-money receipts, treating the same as unexplained cash credits were made in the all the assessment years and demanding tax thereon.
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