Sambhavnath Rajendra Jain Shwetamber Sangh Vs ACIT (ITAT Delhi)
SEARCH BEFORE 1-4-2021, BUT HANDOVER AFTER IT—FOR THE “OTHER PERSON”, THE DEEMED SEARCH DATE RULES & SECTION 153C CANNOT BE INVOKED
Background
A search & seizure action u/s 132 was conducted on 23 March 2021 in the case of Shri Parasmal Jain/M/s Balar Marketing Pvt. Ltd. Certain documents allegedly containing information relating to the assessee, Shree Sambhavnath Rajendra Jain Shwetamber Sangh, were found during the search.
The AO of the searched person recorded a satisfaction note on 24 June 2022, holding that the seized documents pertained to the assessee, who was a person other than the searched person. The material was thereafter handed over to the AO having jurisdiction over the assessee.
The assessee’s AO recorded his own satisfaction on 2 February 2023 that the seized information pertained to the assessee & would have a bearing on the determination of its income. On the very same date, notice u/s 153C was issued.
The proceedings culminated in an assessment u/s 143(3) r.w.s. 153C, making an addition of ₹35 lakh u/s 68 as unexplained cash credit & a further addition of ₹70,000 towards estimated commission allegedly paid for obtaining an accommodation entry. The CIT(A) confirmed the assessment.
