Sai Krupa Developers Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that initiation of proceedings u/s. 147 of the Income Tax Act based on material found during search of another company is untenable as proceedings should be initiated u/s. 153C and not u/s. 147.
Facts- The assessee is engaged in the business of development of industrial plots i.e. purchase of land, development of such land, industrial plotting followed by sale of such land.
The background of the case is that a survey action was carried out at the premises of the assessee firm and search at the main office premises / corporate office of Shri Robin Goenka who is a 25% partner in the assessee firm and the assessee firm, for the impugned years under consideration, had developed and sold certain plots of land for the Sankalp Group. During the course of search action u/s. 132 of the Act at the corporate office premises of Shri Robin Goenka, evidence relating to Sankalp Industrial Estate project situated at Village Chiyada, Ahmedabad was found and seized. On verification of evidence found and seized from the main office premises of Robin Goenka, AO observed that the assessee firm had meticulously maintained the booking status of plots alongwith other vital details such as name of the buyers written against each Plot Number, area of plots, selling price and more importantly details of on-money receipt with respect to sale of each of the plots. Accordingly, the Department initiated proceedings u/s. 148 of the Act by issuance of notice dated 27.03.2021 on the assessee. AO made addition of Rs. 24,04,282/- in the hands of the assessee for the impugned year under consideration. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
