GURUCHARAN SINGH HORA,RAIPUR vs. DCIT,CENTRAL CIRCLE-8, DELHI

This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)-25, Delhi’s DIN & order No. ITBA/APL/S/250/2024-25/1072267602(1) dated 17.01.2025, in proceedings u/s 153A of the Income Tax Act, 1961.

Heard both the parties at length. Case file perused.

Coming to the assessee’s sole substantive ground raised in the instant appeal seeking to reverse both the learned lower authorities’ action adding the amount in question of Rs.30,67,549/- as his unexplained money u/s 69A r.w.s. 115BBE of the Act; in assessment order dated 30.03.2022 as Gurucharan Singh Hora upheld in the lower appellate discussion, we note at the outset with the able assistance coming from both the parties that the same has emanated from the corresponding seized material from official premises of M/s Gentle Entertainment Pvt. Ltd., B- 27/7, near Ashadeep Hospital, New Rajendra Nagar, Raipur on 27.02.2020.

It is thus clear in other words that both the learned lower authorities have not added the impugned sum based on any seized material found at the assessee’s premises during the course of search. Learned departmental representative vehemently argues that once the assessee himself was covered in the relevant search; and, therefore, such an addition could have been made only in an assessment framed u/s 153A of the Act.

We find no merit in the Revenue’s foregoing vehement contentions as hon’ble jurisdictional high court landmark decision in PCIT Vs. Anand Kumar Jain (2021) 432 ITR 384 (Del.) has settled the issue even if it is the same search, such addition based on the relevant seized material found at a third party premises could be made after initiation of proceedings u/s 153C of the Act. We adopt very analogy herein as well to delete the impugned addition in very terms therefore.

All other remaining pleadings between the parties stand rendered academic.