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Case Law Details

Case Name : CIT Vs Anil Kumar Bhatiya (Delhi High Court)
Appeal Number : ITA 1626/2010, ITA 1632/2010, ITA 1998/2010, ITA 2006/2010, ITA 2019/2010, ITA 2020/2010
Date of Judgement/Order : 07/08/2012
Related Assessment Year :
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  The Assessing Officer has the power under Section 153A to make assessment for all the six years and compute the total income of the assessee, including the undisclosed income, notwithstanding that the assessee filed returns before the date of search which stood  processed under Section 143(1)(a). The other reason given by the Tribunal in the same paragraph of its order that no material was found during the search is factually unsustainable since the entire case and arguments before the departmental authorities as well as the Tribunal had proceeded on the basis that the document embodying the transaction with Mohini Sharma was recovered from the assessee. While summarizing the contentions of the assessee in Paragraph 5 of its order, the Tribunal itself has referred to the contention that no document much less incriminating material was found during the  search of the assessee‟s premises, except one unsigned undertaking for loan. Again in Paragraph 10 of its order, while dealing with the assessee‟s contention against the addition of `1,50,000/- being unexplained loan given to Mohini Sharma, the Tribunal has stated that it has analyzed “the subject document carefully, recovered from search”suggesting that the document was recovered during the search from the assessee. The Tribunal has even proceeded to delete the addition of `1,50,000/- as well as the notional interest on merits, holding that the document was unsigned, that Mohini Sharma was not examined by the income tax authorities and there was no corroboration of the unsigned document. If it is not in dispute that the document was found in the course of the search of the assessee, then Section 153A is triggered. Once the Section is triggered, it appears mandatory for the Assessing Officer to issue notices under Section 153A calling upon the    assessee to file returns for the six assessment years prior to the year in which the search took place. There are contradictions in the order of the Tribunal. We are unable to appreciate how the Tribunal can say in Para 9.6 that no material was found during the search and at the same time in Paragraph 10 deal with the merits of the additions based on the document recovered during the search which allegedly contain the loan transaction with Mohini Sharma. Therefore, both the reasons given by the Tribunal for holding that the assessments made under Section 153A were bad in law do not commend themselves to us. The result is that the first substantial question of law is answered in the negative, in favour of the Revenue and against the assessee.

HIGH COURT OF DELHI AT NEW DELHI

Date of Decision: 7th August, 2012

ITA 1626/2010,  ITA 1632/2010,  ITA 1998/2010,  ITA 2006/2010,  ITA 2019/2010,  ITA 2020/2010

CIT Versus ANIL KUMAR BHATIA

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