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$~7-10 & 12-13 * IN THE HIGH COURT OF DELHI AT NEW DELHI
ITA 142/2018 & CM APPL. 5054/2018
ITA 143/2018
ITA 144/2018 & CM APPL. 5057/2018
ITA 145/2018 & CM APPL. 5058/2018
ITA 147/2018 & CM APPL. 5061/2018
ITA 148/2018 & CM APPL. 5062/2018
PRINCIPAL COMMISSIONER OF INCOME TAX-8..... Appellant
Through: Mr. Sanjay Kumar, Adv. versus
SALDI CHITS PVT. LTD.
..... Respondent
Through : None.
CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA
O R D E R %
09.02.2018
The Revenue is aggrieved by the findings of Income Tax appellate Tribunal (ITAT) for block assessments completed under Section 153C of the Income Act (‘the Act’). During the search undertaken on Thapar Group on 20.10.2008, some material relating to the assessee was found in its premises. The file was therefore, transmitted to the Assessing Officer (AO) of the assessee, who issued notice under Section 153C. Eventually, this led to substantial additions - under Section 69C and 68 of the Act. The CIT(A) also ITA 142/2018 & connected matters
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upheld the findings of the AO with respect to most of the additions. The ITAT however, granted relief to the assessee, which had questioned both the assessment under Section 153C on the ground of lack of jurisdiction (alleging that no satisfaction has been urged and that alleged incriminating material had no nexus with the additions made, was revealed). The ITAT accepted both contentions. The ITAT reasoned as follows : “……..Since in the instant case only cheque book entries belonging to the assessee were found during the course of search in the premises of the M/s. Thapar Homes Group which was not taken into cognizance while making addition in the assessee's case at the time of Assessment, therefore, issue of notice u/s. 153C of the Income Tax Act by the AO in our opinion is not a valid notice. Therefore, the decision of the Hon'ble Delhi High Court in the case of SSP Aviation Ltd. (Supra) will not be applicable in the present case. However, since all the entries found in those documents have already been reflected in the books of accounts as per the records furnished by the assessee and which was not controverted by the Ld. DR, therefore no addition u/s 68 could have been made……..”
The ITAT also relied upon the judgment of this Court in ARN Infrastructure India Ltd. Vs. ACIT, (2017) 394 ITR 569, wherein, it was held that if documents seized from a third party do not show nexus with any omission or concealed, income tax addition cannot be sustained under Section 153C of the Act.
Since the ITAT is the final fact finding authority and had gone into the evidence and applied the rules enunciated by this Court’s ITA 142/2018 & connected matters
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decisions, and further having regard to the fact that the material used to bring to tax amounts under Section 68 and 69C, in fact had no nexus with the assessee, since they were mere cheque books (the amounts in fact reflected in the assesee’s account), this Court is of the opinion that no question of law arises. These appeals are therefore, dismissed. All the pending applications also stand disposed off.
S. RAVINDRA BHAT, J
A. K. CHAWLA, J FEBRUARY 09, 2018 rc
ITA 142/2018 & connected matters
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