Case Law Details
DCIT Vs Jethmal Mehta (ITAT Delhi)
ITAT Delhi held that initiation of proceedings u/s 153C of the Income Tax Act based on seized dumb documents found in the premises of third party is unsustainable in law as the seized documents are merely loose sheets not forming part of the books of account of the assessee and that they do not constitute admissible evidence.
Facts- The search and seizure operation u/s 132 of the Act was carried out in the residential and business premises of Antriksh Group of cases on 05/02/2014. A notice u/s 153A(1) r.w.s. 153C of the Act dated 18/02/2016 was issued and served upon the assessee, requiring the assessee to file return of income for AY 2012-13. In response to the said notice, the assessee submitted copy of its return of income originally filed on 10/09/2012 declaring total income of Rs.62,04,570/-. From these facts it could be safely concluded that assessment in the hands of the assessee was actually framed u/s 153C of the Act and not u/s 153A of the Act.
Sh. Rakesh Yadav, belonging to Antriksh Group was subjected to search u/s 132 of the Act on 05/02/2014. AO of the searched party recorded satisfaction that certain documents were found and seized from the premises of Sh. Rakesh Yadav, belongs to assessee herein. Accordingly, proceedings were sought to be initiated in the hands of the assessee u/s 153C of the Act. On receipt of such satisfaction, AO of the assessee also recorded satisfaction note stating that documents seized from the premises of Rakesh Yadav during the course of his search belongs to assessee and initiated proceedings u/s 153C of the Act in the hands of the assessee. This satisfaction was recorded by the AO on 18/02/2016. In the search assessment framed u/s 153C of the Act, the AO made addition on account of jewellery amounting to Rs.2,80,020/- and Rs.6,75,17,615/- on account of unaccounted cash receipts and determined the total income of the assessee for AY 2012-13 at Rs.7,40,02,205/-.
CIT(A) quashed the assessment framed u/s 153C in the hands of the assessee.
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