Case Law Details
Narendra Kumar Vs ITO (ITAT Delhi)
ITAT Delhi held that addition based on incriminating material found during the search carried out of ‘some other person’ i.e. third person/ party and assessing the same by invoking provision of section 147 instead of section 153C is unsustainable.
Facts- the assessee filed return declaring income of Rs. 9,05,470/- for Assessment Year 2012-13. The case was taken up for scrutiny and the assessment u/s 148/147 of the Act was completed on 23/03/2016 determining income at Rs. 16,05,470/- by making addition of Rs. 7,00,000/- u/s 68 of the Act treating the same as unexplained income.
Aggrieved by the assessment order dated 23/03/2016, the assessee preferred an Appeal before the CIT(A), the ld. CIT(A) vide order dated 20/12/2018 dismissed the Appeal filed by the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that the incriminating material was found and seized during the search carried out of ‘some other person’ that a sum of Rs. 7,00,000/- had been paid by the assessee during the Financial Year 2011-12 to Santosh Medical College, Ghaziabad, and since the assessee was not assessed u/s 153C of the Act, which provision specifically exclude the operation u/s 147 of the Act, in our considered opinion, the A.O erred in invoking provision to Section 147 of the Act instead of those of Section 153C of the Act. In view of the above, the reasons recorded u/s 147 of the Act and all proceedings pursuant to thereto, cumulative the order under Appeal are quashed.
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