HITCHKI CREATION PVT. LTD. VS. DCIT, CENTRAL CIRCLE, MEERUT

Parties Involved

Facts Summary

A search and seizure operation under section 132 was conducted on 27.11.2014 in the case of Maconns, Meenu and Yadav Singh Group, wherein certain incriminating documents were found and seized relating to the assessee. Subsequently, a notice under section 153C was issued on 27.06.2016. The assessee filed its return showing income of Rs. 4,57,650/-. Thereafter, notices under sections 143(2) and 142(1) were issued, and the Assessing Officer (AO) completed the assessment by making an addition of Rs. 65,57,300/- on account of unexplained investment in immovable property under section 68 of the Act and disallowance of Rs. 60,000/- on interest on loan. The AO noted that the registered sale deed pertaining to the immovable property was found and that the share applicants and lenders were bogus/non-existent. Consequently, the income of the assessee was assessed at Rs. 70,74,950/-. Aggrieved by this, the assessee preferred an appeal before the Ld. CIT(A), who confirmed the additions in his impugned order.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in law and on facts in confirming the action of the Ld. AO in assuming jurisdiction under section 153C and passing the impugned order.
• 2. Whether the assessment framed under section 153C of the Act is bad in law and against the facts and circumstances of the case.
• 3. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 65,57,300/- under section 68 of the Act.
• 4. Whether the Ld. CIT(A) erred in confirming the disallowance of Rs. 60,000/- on interest on loan.
• 5. Whether the Ld. AO erred in holding that interest on loan debited to profit & loss account are not genuine.
• 6. Whether the Ld. CIT(A) erred in confirming the action of the Ld. AO in passing the impugned assessment order without requisite approval under section 153D.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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