ACIT Vs Neena Jain (ITAT Delhi)
The appeal by the Revenue and cross objection by the assessee arose from the order dated 24.03.2025 passed by the CIT(A)-29, New Delhi, concerning Assessment Year 2017-18. The assessment had been framed under Section 153A read with Section 143(3) of the Income Tax Act, 1961.
In the cross objection, the assessee contended that the assessment under Section 153A was invalid as it was based on material seized during a search conducted in the case of third parties and not the assessee. It was also argued that the approval granted under Section 153D was mechanical. The Revenue submitted that the grounds were not raised at the proper stage and defended the assessment as well as the approval process.
The Tribunal noted that the CIT(A) had examined the issue in detail and recorded findings that no incriminating material pertaining to the assessee was found during the search. Although the Assessing Officer stated that incriminating material was seized from the premises of the assessee, there was no detail in the assessment order identifying the premises searched or any material seized relating to the alleged unaccounted cash received on property transactions. The warrant of authorization and panchnama reproduced by the CIT(A) showed that the search action was conducted in the case of third parties. The panchnama in the name of the assessee mentioned only jewellery items and did not reflect any incriminating material relating to the property transaction.
