DCIT Central Circle-1 Gurgaon Vs. Zeal Buildwell Pvt. Ltd.
Parties Involved
Facts Summary
A search and seizure operation under Section 132 of the Income Tax Act was carried out on 05.02.2014 at the premises of Antriksh Group of cases. The Assessing Officer (AO) issued a notice under Section 153A read with Section 153C on 24.02.2016, and the assessee filed a return of income declaring total income at Rs.11,14,120/-. The AO observed that certain documents containing transactions of unaccounted receipts/payments were discovered from the premises of Shri Rakesh Yadav and Shri Rakesh Sharma, promoters of Antriksh Group. The AO concluded that the assessee and two other concerns made cash payments of Rs.13.45 crore for obtaining rights in land for development purposes. The AO further observed that cash payment has also been acknowledged by the Logix Group as per the documents found in the course of search. The AO accordingly concluded Rs.2.25 crore to be attributable to the assessee in proportion to the land holding is susceptible to tax as unexplained expenditure in terms of Section 69C of the Act.…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the AO erred in issuing notice u/s 153C without satisfying that the seized documents do not belong to the searched person but to the assessee.
- 2. Whether the AO erred in concluding that the seized documents pertain to the assessee without any incriminating material found during the search.
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
6 precedents cited in this judgement.
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