Case Law Details
Rumneek Bawa Vs ACIT (ITAT Delhi)
ITAT Delhi held that assessment framed u/s. 153A of the Income Tax Act based on material found during search on third party without following the mandate of section 153C of the Income Tax Act is unsustainable in law.
Facts- There was a search and seizure operation u/s. 132A of the Income Tax Act, 1961 conducted on 04.02.2009 in the case of M/s. Zoom Developers Pvt. Ltd and the residential as well as Office premises of Shri Ramneek Bawa, CEO of M/s. Zoom Developers Pvt. Ltd.
In the assessment order, AO noted that on going through the seized material, it was noticed that in the Office of M/s. Zoom Developers Pvt. Ltd. some incriminating documents were found which disclosed that Mr. Ramneek Bawa, the assessee was handed over the cash amounts on various dates amounting to Rs.24,65,000/- by the company which was not recorded in the Return of Income filed by the assessee.
Not being satisfied with the reply, AO treated the entire amount of Rs. 24,65,000/- as undisclosed income of the assessee. CIT(A) confirmed Rs.24,25,000/-. Being aggrieved, the present appeal is filed.
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