Shri Ishaq Khan, Bhopal V. The ACIT, 2(1), Bhopal

ITSSA 252/IND/2012

• Counselvise Citation: [2013] 121 COUNSELVISE.COM (IT) 8844 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 05-03-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 18-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R A VERMA; MRIDULA BAJPAI
• Assessee Lawyers: S S DESHPANDE
• Keywords: Search and seizure; Source of fund
• Section: 143(3); 153A; 131; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : ABXPT8757H I.T(SS).A.NO. 253 TO 255/IND/2012. A.Y. : 2006-07 MR.RAVI TAPARIA, BHOPAL ACIT, 2(1), BHOPAL VS APPELLANT RESPONDENT PAN NO. : BMWPK2910A I.T(SS).A.NO. 247 TO 249/IND/2012. A.Y. : 2006-07 TO 2008-09 MR.RA FIQUE KHAN , BHOPAL ACIT, 2(1), BHOPAL VS APPELLANT RESPONDENT PAN NO. : BMWPK2910A I.T(SS).A.NO. 250 TO 252/IND/2012. A.Y. : 2006-07 TO 2008-09 MR. ISHAQ KHAN, BHOPAL ACIT, 2(1), BHOPAL VS APPELLANT RESPONDENT -: 2: - 2 APPELLANT BY : SHRI S.S.DESHPANDE, C. A. RESPONDENT BY : SMT. MRIDULA BAJPAI, CIT DR AND SHRI R. A. VERMA, SR. DR DATE OF HE ARING : 13 . 0 2 .201 3 DATE OF PRONOUNCEMENT : 05 . 0 3 .201 3 O R D E R PER R. C. SHARMA, A.M. THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) FOR THE ASSESSMENT YEAR 2006-07 TO 2008-09. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE MR. RAVI TAPARIA IS AN INDIVIDUAL DERIVING INCOME F ROM BUSINESS AND OTHER SOURCES. A SEARCH AND SEIZURE AC TION U/S 132 OF THE INCOME-TAX ACT, 1961, WAS CARRIED OU T AT THE OFFICE AND RESIDENTIAL PREMISES OF THE AGRAWALS, TA PARIAS AND THE SINGHDEOS GROUP OF BHOPAL ON 13.07.2007. SUBSEQUENTLY, NOTICES U/S 153A DATED 26.05.2008 FOR ASSESSMENT YEARS 2006-07 TO 2008-08 WERE ISSUED TO THE ASSESSEE, ACCORDINGLY, THE ASSESSEE FILED RETURNS U /S 153A OF THE ACT. THE ASSESSING OFFICER HAS DISCUSSED THE FACTS AND CIRCUMSTANCES OF THIS ADDITION IN ASSESSMENT YEAR 2 006-07 -: 3: - 3 IN THE PARAS 5 TO 9. IT IS A SEARCH CASE AND DURIN G THE SEARCH OPERATION, ONE SALE DEED WAS FOUND AND AS PE R THIS ALE DEED OF PLOTS AT 52/1, 54, 5, 131/5/4 (2.02 ACR ES) NAYAPURA, TAHSIL HUZUR, BHOPAL, SHRI RAVI TAPARIYA AS SELLER SOLD THE PLOT TO THE BUYERS NAMELY SHRI SHAI LESH SINGH, SHRI K.K.SINGH, SHRI SHASHI BHAI SINGH, SHRI RAFIQUE KHAN AND ISHAQ KHAN ON 10.11.2005 FOR CONSIDERATION OF RS. 35,00,000/-. ON BEING ENQUIRED ABOUT THIS TRANS ACTIONS BY THE ASSESSING OFFICER, THE ASSESSEE REPLIED THAT THE FIRM M/S. SAROJ TAPARIYA CONSTRUCTION AND HOUSING BHOPAL HAD SOLD THIS LAND VIDE REGISTERED DEED DATED 10.11.200 5 FOR RS. 35,00,000/- TO THE ABOVE MENTIONED PERSONS. IT WAS ALSO SUBMITTED BY THE ASSESSEE THAT SUCH TRANSACTIONS OF THE FIRM IS DULY RECORDED IN THE BOOKS OF ACCOUNT OF TH E FIRM AND THAT ON SUCH SALE TRANSACTION, PROFIT OF RS. 7,02,8 97/- HAS ALSO BEEN SHOWN IN THE RETURN OF INCOME FOR ASSESSM ENT YEAR 2006-07. IT WAS ALSO STATED THAT THE TRANSACTI ON WAS OF THE FIRM AND NOT OF INDIVIDUALS AND THAT SHRI RAVI TAPARIYA BEING ONE OF THE PARTNERS IN FIRM, EXECUTED THE SAL E DEED. THE ASSESSING OFFICER FURTHER OBSERVED THAT ON THE SAME DATE I.E. 10.11.2005 TWO SALE AGREEMENTS WERE MADE AND -: 4: - 4 EXECUTED BY THE ABOVE MENTIONED FIVE PERSONS AND AS PER ONE AGREEMENT BETWEEN SHRI SHAILESH SINGH, SHRI K.K . SINGH, SHRI SHASHI BHAL SINGH, SHRI RAFIQUE KHAN AN D ISHAQ KHAN AND M/S. STERLING CONTRACTORS AND BUILDE RS PVT.LTD., IT WAS AGREED TO SALE HALF (1.01 ACRES) O F THE ABOVE MENTIONED PLOT FOR A SALE PRICE OF RS. 61,25,000/-. THE PURCHASER IN CONSIDERATION OF THIS AGREEMENT ALSO P AID CERTAIN ADVANCES BY DIFFERENT CHEQUES OF UNION BANK OF INDIA, ARERA COLONY, BHOPAL. AS PER ANOTHER AGREEM ENT OF THE SAME DATE THE SAME FIVE PERSONS AGREED TO SALE OTHER HALF (1.01 ACRES) OF THE ABOVE MENTIONED PLOT TO SH RI ASHIVINI KUMAR AGRAWAL, SMT. RUCHI AGRAWAL AND SHRI SWANDEEP AGRAWAL FOR A SALE CONSIDERATION OF RS. 61,25,000/- WHICH WAS TO BE PAID BY 30.07.2006. THE PURCHASERS IN CONSIDERATION OF THIS AGREEMENT ALSO PAID A SUM OF RS. 36.25 LACS TO THE SELLERS AS ADVANCE AMOUNT BY WAY OF CHEQUES OF IDBI AND CENTRAL BANK. HOWEVER, BOTH TH ESE AGREEMENTS WERE CANCELLED BY DEED OF CANCELLATION D ATED 01.12.2006 AND THE ADVANCES RECEIVED BY THE SELLERS WERE RETURNED TO THE PURCHASERS. THE ASSESSING OFFICER F URTHER OBSERVED THAT SUBSEQUENTLY, ALL THE ABOVE MENTIONED FIVE -: 5: - 5 PERSONS I.E. SHRI SHAILESH SINGH, SHRI K.K. SINGH, SHRI SHASHI BHAL SINGH, SHRI RAFIQUE KHAN AND ISHAQ KHAN WERE MADE 2 % PARTNERS IN THE FIRM M/S. JAIN TAPARIYAS CONSTRUCTION AND DWELLINGS (JTC DWELLINGS), M.P.NAG AR, BHOPAL. IN THIS FIRM, M/S. SAROJ TAPARIYA CONSTRUCT ION & HOUSING, A FIRM OF TAPARIYAS WAS ALSO A PARTNER HAV ING SHARE OF 34% IN CONSIDERATION OF THEIR CONTRIBUTION OF THE ABOVE MENTIONED LAND OF 2.02 ACRES. DURING THE ASSE SSMENT PROCEEDINGS, THE ASSESSING OFFICER ASKED THE APPELL ANT TO EXPLAIN AS TO WHY WAS LAND SOLD AND THEN CANCELLED AND WHY THESE FIVE PERSONS MADE 2% PARTNER IN THE FIRM. THE ASSESSING OFFICER ALSO REQUIRED THE APPELLANT TO EX PLAIN AS TO WHY THE SAME SHOULD NOT BE TREATED AS HIS BENAMI TRANSACTIONS. AS REGARDS THE OBSERVATIONS AND QUERY OF THE ASSESSING OFFICER, THE ASSESSEE SUBMITTED THAT AFTE R PURCHASE OF THE PROPERTY BY THE ABOVE FIVE PERSONS, THEY WANTED TO DEVELOP HOUSING PROJECT ON THE SAID LAND BUT DUE TO LACK OF EXPERTISE IN THIS LINE OF BUSINESS, THEY APPROACHED TO MR. SINGH DEV AND THE APPELLANT WHO IS DIRECTOR OF M/S SAROJ TAPARIYA CONSTRUCTION & HOUSING PVT. LTD. TO DO THE SAID -: 6: - 6 DEVELOPMENT JOINTLY AND THEREFORE A PARTNERSHIP AGREEMENT FOR THAT PURPOSE WAS EXECUTED ON 01.11.2006 AND A FIRM IN THE NAME OF JTC DWELLINGS WAS CONSTITUTED ON 0 1.11.2006 BETWEEN THE PARTNERS NAMELY SHRI AJAY JAIN, SHRI ARPIT JAIN, SHRI ISHAQ KHAN, SHRI K.K SINGH, RAFIQUE KHAN, SHAILESH SINGH, SHASHI BHAL SINGH AND M/S SAROJ TAPARIYA CONSTRUCTION & HOUSING PVT. LTD. IT WAS FURTHER STATED BY THE APPELLANT THAT IN THE ABOVE MENTIONED FIRM THE APPELLANT WAS NOT A PARTNER AND THAT THE SAID FIRM IS ALSO ASSESSED TO INCOME TAX SEPARATELY. IT WAS FURTHER SUBMITTED THAT THE FIRM WAS CARRYING ON THE BUSINESS FROM THE PREMISES OF PLATINUM PLAZA, NEAR MATA MANDIR, BHOPAL WHICH IS THE OFFICE OF THE SAID FIRM. IT WAS FURTHER STATED THAT DUE TO BUSINESS ASSOCIATION SHRI RAFIQUE & ISHAQ KHAN USED TO VISIT TO OFFICE OF THE FIRM AND SINCE THEY WERE ALSO THE PARTNER-IN THE FIRM THEREFORE, THEY HAVE KEPT THEIR BANK -: 7: - 7 ACCOUNT, PASS BOOK, CHEQUES ETC. AT THE PREMISES OF THE SAID FIRM. THE ASSESSEE ALSO SUBMITTED THAT HE HAD NEVER FINANCED AN AMOUNT TO THE SAID PERSONS AND THAT NEVER RECEIVED AN AMOUNT FOR BENEF IT IF SAID PERSONS. BEFORE THE ASSESSING OFFICER THE ASSE SSEE ALSO CONTENDED THAT HE WAS NOT IN POSSESSION AND ENJOYMENT OF THE INCOME AND PROPERTIES OF THE AFORE SAID PERSONS AND THAT THE PREPOSITION OF THE ASSESSING OFFICER TO TREAT THEM AS BENAMI WAS WHOLLY UNLAWFUL AND UNJUSTIFIED. 3. THE ASSESSING OFFICER ON GOING THROUGH THE BANK ACCOUNTS OF SHRI SHASHI BHAL SINGH, SHRI RAFIQUE KH AN AND SHRI ISHAQ KHAN OBSERVED THAT THESE PERSONS HAV E GOT FUNDS FROM SHRI DEEPAK SHRIVASTAVA, ARCHITECT AND H IS WIFE SMT. PADAMJA SHRIVASTAVA ALSO AN ARCHITECT BOT H RESIDING AT E1/101, ARERA COLONY, BHOPAL AS ALSO FR OM AJAY SIDANA (NRI BUSINESSMAN SETTLED IN UK). AS PER THE ASSESSING OFFICER SHRI DEEPAK SHRIVASTAVA ADVANCED RS.9 LAC TO SHRI RAFIQUE KHAN AND RS.8.50 LAC TO SHRI SH ASHI BHAL SINGH. SIMILARLY, SMT. PADAMJA SHRIVASTAVA ADV ANCED -: 8: - 8 RS.9 LACS TO SHRI ISHAQ KHAN AND, SHRI AJAY SIDANA ADVANCED RS.7 LACS EACH TO RAFIQUE KHAN, ISHAQ KHAN AND SHASHI BHAL SINGH. THE ASSESSING OFFICER FURTHER NO TICED THAT SHRI DEEPAK AND SMT. PADAMJA SHRIVASTAVA WERE NOT KNOWN TO THESE FIVE PERSONS AND IN THEIR STATEMENTS THEY ADMITTED THAT THEY KNOW SHRI RAVI TAPARIYA AND SHRI ARUNESHWAR SARAN SINGH DEV AND THE AMOUNT WAS ADVANCED AT THE INTEREST OF 12 % AT THE BEHEST OF S HRI RAVI TAPARIYA AND SHRI ARUNESHWAR SARAN SINGH DEV. THE ASSESSING OFFICER FURTHER NOTICED THAT SHRI AJAY SI DANA VIDE FAX DATED 17.03.2008 ALSO SUBMITTED THAT HE HA S LENT THIS MONEY @ 12 % TO THESE THREE PERSONS ON THE PER SONAL GUARANTEES OF HIS FRIENDS NAMELY SHRI RAVI TAPARIYA AND SHRI ARUNESHWAR SARAN SINGH DEV. THE ASSESSING OFFI CER HAS FURTHER OBSERVED THAT ALL THE BANK PAPERS OF SH RI AJAY SIDANA INCLUDING SIGNED CHEQUE BOOKS WERE SEIZED FR OM THE PREMISES OF TAPARIYA. THE ASSESSING OFFICER FUR THER OBSERVED THAT RAFIQUE KHAN IN AFFIDAVIT FILED 10.04 .2008 HAD STATED THAT HE HAD N OT GIVEN ANY ADVANCE OR LOAN TO SAROJ TAPARIYA CONSTRUCTION & HOUSING AND ISHAQ KHAN IN THE AFFIDAVIT FILED -: 9: - 9 ON 10.4.2008 HAD STATED THAT HE HAD NO KNOWLEDGE OF FIRM M/S. JAIN TAPARIYA AND CONSTRUCTION. 4. HOWEVER, THE ASSESSING OFFICER DID NOT AGREE WITH THE ASSESSEES CONTENTION AND ADDED THE AMOUNT RECEIVED FROM DEEPAK SHRIVASTAVA, SMT. PADMJA SHRIVASTAVA AND AJAY SIDANA WHICH WERE CREDITED IN THE BANK ACCOUNT OF RAFIQ KHAN, ISHAQ KHAN AND SHASHI BHAL SINGH AS ASSESSEES INCOME. CONTENTION OF ASSESSING OFFICER WAS THAT CREDIT IN THE BANK ACCOU NT OF THESE PERSONS HAS BEEN USED FOR BENEFIT OF ASSES SEE RAVI TAPARIA. 5. BY THE IMPUGNED ORDER, THE LD. CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER AGAINST WHICH T HE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BEL OW AND ALSO STATEMENTS RECORDED U/S 131 OF THE INCOME- TAX ACT, 1961. WE HAD ALSO PERUSED THE BANK ACCOUNT -: 10: - 10 OF SHRI SHASHI BHAL SINGH, RAFIQ KHAN AND ISHAQ KHAN. FROM THE RECORD, WE FOUND THAT THE ADDITION H AS BEEN MADE BY THE ASSESSING OFFICER ON THE PLEA THAT THE FUNDS CREDITED IN THE BANK ACCOUNT OF THESE THR EE PERSONS WERE BELONGING TO THE ASSESSEE SHRI RAVI TAPARIA. THE ASSESSING OFFICER WAS ALSO OF THE VIEW THAT SINGH GROUP OF PERSONS WERE BENAMIDARS OF THE ASSESSEE AND THE TRANSACTIONS IN THE BANK ACCOUNT WERE UNEXPLAINED MONEY OF THE ASSESSEE. HOWEVER, TH E ASSESSING OFFICER HAS NOT GIVEN CREDENCE TO THE SAL E OF LAND TO SINGH GROUP ENTERING INTO AGREEMENT WITH THIRD PARTIES, WHO ARE NO WAY CONNECTED TO THE ASSESSEE. FROM THE RECORD, WE FOUND THAT PROFIT ON SALE OF THIS LAND HAS ALREADY BEEN OFFERED AND TAXED AS INCOME IN THE HANDS OF SAROJ TAPARIA (CONSTRUCTION) . THE GENUINENESS OF PARTNERSHIP OF ASSESSEE WITH JAI N GROUP AND SINGH GROUP IN THE NAME OF JTC DWELLING IS ALSO NOT DOUBTED AND THE SAME IS FOUND TO BE GENUINE AND WHICH HAS ALSO BEEN ACCEPTED BY THE INCOME TAX DEPARTMENT. FROM THE RECORD, WE FOUND -: 11: - 11 THAT WHILE ENTERING INTO THIS PARTNERSHIP, THE CRED IT OF CAPITAL CONTRIBUTION BY WAY OF AGRICULTURAL LAND HA S BEEN ACCEPTED BY THE INCOME TAX DEPARTMENT. THEIR ACCOUNTS HAVE BEEN CREDITED BY RS. 39 LAKHS AND THE PROFIT EARNED BY THE FIRM HAS ALSO BEEN CREDITED IN THEIR CAPITAL ACCOUNT. NOTHING WAS BROUGHT ON RECOR D BY THE ASSESSING OFFICER TO THE EFFECT THAT MONEY CREDITED TO THEIR CAPITAL ACCOUNT HAS FLOWN BACK TO THE ASSESSEE. WE ALSO FOUND THAT RESPECTIVE PERSONS HAV E UTILIZED THIS MONEY FOR THEIR OWN PURPOSES, THUS, T HE CONCLUSION DRAWN BY THE ASSESSING OFFICER IS NOT SUSTAINABLE. THERE IS ALSO NO DISPUTE TO THE FACT T HAT SHRI DEEPAK SHRIVASTAVA, ARCHITECT AND HIS WIFE SMT . PADMJA SHRIVASTAVA, ARCHITECT, WHO HAD GIVEN THE MONEY TO THESE THREE PERSONS ARE ASSESSED TO TAX. THE MONEY WAS GIVEN FROM THEIR BANK ACCOUNT IN FAVOUR O F SINGH GROUP AND THEY HAVE ALSO CONFIRMED THE TRANSACTION IN WRITING AND BY PERSONALLY APPEARING BEFORE THE ASSESSING OFFICER. IN THE CONFIRMATION F ILED BEFORE THE ASSESSING OFFICER, IT WAS STATED THAT TH E LOAN -: 12: - 12 HAS BEEN ADVANCED BY CHEQUE AFTER OBTAINING LOAN ON THEIR RESPECTIVE FIXED DEPOSIT. SOURCE OF F. D. BY SHRI DEEPAK SHRIVASTAVA AND SMT. PADMJA SHRIVASTAVA, ARCHITECT, WERE NO WHERE DOUBTED BY THE ASSESSING OFFICER. ONCE THE LOAN HAS BEEN GIVEN BY MR. AND MR S. SHRIVASTAVA OUT OF OVER DRAFT AGAINST THEIR FDS, TH E SOURCE OF FUND AND CREDITWORTHINESS OF THE LOAN CREDITORS CANNOT BE DOUBTED. BOTH OF THEM WERE INCOME TAX ASSESSEES AND DULY CONFIRMED THE LOAN TRANSACTIONS. THE SOURCE OF MONEY ADVANCED THROUGH CHEQUE HAS ALSO BEEN DISCLOSED BY THEM. THUS, THE SOURCE OF SOURCE IS ALSO PROVED, MERELY BECAUSE THE FUND WAS ROUTED THROUGH ACCOUNT OF RAFIQUE KHAN AND ISHAQ KHAN CREDIT APPEARING IN THEIR BANK ACCOUNT CANNOT BE ADDED IN THE ASSESSEES INCOME IN SO FAR AS ORIGINAL SOURCE OF FUND AND CREDITWORTHINESS OF MR. & MRS. SHRIVASTAVA, WHO HAVE ADVANCED THE MONEY OUT O F THEIR FIXED DEPOSITS IS NOT IN DOUBT. MERELY ON THE PLEA THAT ADVANCE WAS GIVEN ON BEHEST OF RAVI TAPARIA OR ON PERSONAL GUARANTEE OF RAVI TAPARIA, THE SAME CANNOT -: 13: - 13 BE TREATED AS RAVI TAPARIAS UNACCOUNTED MONEY. EVE N THE LOAN CONFIRMATION OF AJAY SIDANA IS PROVED BY H IS CONFIRMATION AND BANK STATEMENT AND BY THE TELEX MESSAGE. 7. THE ASSESSING OFFICER AT PARA 7.5 OF HIS ORDER ALSO RECORDED A FINDING TO THE EFFECT THAT SHRI DEEPAK SHRIVASTAVA AND SMT.PADMJA SHRIVASTAVA IN THEIR STATEMENT ADMITTED THAT THEY KNOW SHRI RAVI TAPARIA AND SHRI ARUNESHWAR SARAN SINGH DEO AND IT WAS AT THEIR BEHEST THAT THEY GIVE THESE LOANS @ 12 % TO T HESE THREE PERSONS, NAMELY, RAFIQ KHAN, ISHAQ KHAN AND SHASHI BHAL SINGH. THUS, NOT ONLY DEEPAK SHRIVASTAV A BUT PADMJA SHRIVASTAVA AND SHRI AJAY SEDANA HAVE CONFIRMED THE LOAN TRANSACTIONS, WHICH WAS GIVEN AT THE INTEREST OF 12%. IN VIEW OF THESE OBSERVATIONS, WE DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION S MADE IN RESPECT OF AMOUNT GIVEN BY SHRI DEEPAK SHRIVASTAVA, PADMJA SHRIVASTAVA AND SHRI AJAY SEDAN A TO THESE THREE PERSONS. THIS MONEY CANNOT BE TREATE D -: 14: - 14 AS MONEY OF ASSESSEE. SHRI AJAY SEDANA IS NRI BUSINESSMAN SETTLED IN U.K. THERE IS NO DOUBT IN TH E GENUINENESS OF TRANSACTION BY ISSUE OF CHEQUES. SH RI DEEPAK SHRIVASTAVA AND PADMAJA SHRIVASTAVA HAD GIVEN LOAN TO THESE THREE PERSONS OUT OF OVERDRAFT AGAINST THE FIXED DEPOSIT. IN VIEW OF THE ABOVE, OU T OF TOTAL ADDITIONS, THE ASSESSING OFFICER IS DIRECTED TO DELETE ADDITION MADE WITH RESPECT TO CHEQUES RECEIV ED FROM SHRI DEEPAK SHRIVASTAVA, PADMAJA SHRIVASTAVA AND AJAY SEDANA (NRI BUSINESSMAN SETTLED IN UK) IN ALL THE THREE YEARS UNDER CONSIDERATION. WE DIRECT ACCORDINGLY. 8. IN CASE OF RAFIQ KHAN , THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL SHOWING INCOME F ROM PLYING OF TRACTOR AND AGRICULTURE ETC. A SEARCH AND SEIZURE ACTION U/S 132 OF THE INCOME-TAX ACT, 1961, WAS CAR RIED OUT AT THE OFFICE AND RESIDENTIAL PREMISES OF THE A GRAWALS, TAPARIAS AND THE SINGHDEOS GROUP OF BHOPAL ON 13.07.2007. SUBSEQUENTLY, NOTICE U/S 153C DATED 16.09.2009 FOR ASSESSMENT YEAR 2006-07 WAS ISSUED O N -: 15: - 15 THE ASSESSEE, ACCORDINGLY, THE ASSESSEE FILED RETUR NS U/S 153C OF THE INCOME-TAX ACT DECLARING INCOME OF RS. 80,000/-. THE ASSESSMENT U/S 153C R.W.S. 143(3) WAS COMPLETED ON 31.12.2009 AT AN INCOME OF RS. 16,81,0 00/-. THE ASSESSING OFFICER HAS OBSERVED THAT ACTION U/S 132 OF INCOME-TAX ACT, 1961, WAS CONDUCTED AT THE RESIDENT IAL BUSINESS PREMISES OF M/S. AGRAWAL, TAPARIA AND SING HDEO GROUP OF BHOPAL ON 13.11.2007 AND DURING THE SEARCH OPERATION, BLANK SINGED CHEQUE BOOKS/PASS BOOKS OF MR. RAFIQ KHAN WERE FOUND FROM THE PREMISES OF SHRI TAPARIYAS. THEREFORE, PROCEEDING U/S 153C R.W.S. 1 43(3) OF INCOME-TAX ACT, 1961, WAS INITIATED AGAINST THE ASS ESSEE AND IN RESPONSE TO NOTICE U/S 153C, THE ASSESSEE FI LED RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION. 9. WHILE FRAMING ASSESSMENT U/S 153C, THE ASSESSING OFFICER MADE ADDITIONS IN RESPECT OF LOAN RECEIVED FROM DEEPAK SHRIVASTAVA AND AJAY SEDANA. BY THE IMPUGNED ORDER, THE CIT(A) DELETED ADDITIONS. AGAINST THE AB OVE ORDER, THE REVENUE IS NOT IN APPEAL BEFORE US, HOWEVER, TH E ASSESSEE IS IN FURTHER APPEAL BEFORE US, WHEREIN HE HAS CHALLENGED INITIATION OF PROCEEDING U/S 153C. GROUN D HAS -: 16: - 16 ALSO BEEN TAKEN TO THE EFFECT THAT SINCE NOTICE U/S 143(2) WAS ISSUED PRIOR TO FILING OF THE RETURN, HENCE SUC H NOTICE IS INVALID IN LAW AND NO NOTICE WAS ISSUED AFTER FILIN G OF THE RETURN. HENCE, ASSESSMENT IS MADE AS INVALID AND WI THOUT JURISDICTION. 10. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AN D FOUND FROM RECORD THAT INCRIMINATING MATERIAL WAS FOUND D URING COURSE OF SEARCH AT THE OFFICE AND RESIDENTIAL PREM ISES OF AGRAWALS, TAPARIAS AND SINGHDEOS GROUPS OF BHOPAL O N 13.7.2007. IN VIEW OF THESE INCRIMINATING DOCUMENTS , THE ASSESSING OFFICER HAS VALIDLY INITIATED PROCEEDINGS U/S 153C, AS THE CHEQUE BOOK OF ASSESSEE WAS FOUND AT T HE BUSINESS PREMISES OF TAPARIAS. THUS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) CONFIRMING INITIAT ION OF PROCEEDINGS U/S 153C AS VALID. 11. IN CASE OF ISHAQ KHAN, ASSESSMENTS WERE FRAMED U/S 153C, WHEREIN ADDITIONS HAVE BEEN MADE IN RESPE CT OF LOAN TAKEN FROM DEEPAK SHRIVASTAVA, PADMAJA SHRIVAS TAVA AND AJAY SEDANA. LOANS HAVE BEEN GIVEN BY DEEPAK SHRIVASTAVA AND PADMJA SHRIVASTAVA BY TAKING OVERDR AFT -: 17: - 17 AGAINST THEIR FIXED DEPOSIT. THE AMOUNT WAS GIVEN A T AN INTEREST OF 12 % PER ANNUM. THE CIT(A) DELETED THE ADDITION. AGAINST THE ORDER OF CIT(A), REVENUE IS NOT IN APPE AL BEFORE US, BUT THE ASSESSEE HAS CHALLENGED INITIATION OF P ROCEEDINGS U/S 153C. 12. SO FAR AS INITIATION OF PROCEEDINGS U/S 153C HAS BEEN CHALLENGED BY THE ASSESSEE, WE FOUND THAT INCRIMINATING DOCUMENTS WAS FOUND DURING COURSE OF SEARCH ACTION U,/S 143(2) AT THE OFFICE AND RESIDENTIAL PR EMISES OF AGRAWALS AND TAPARIAS OF SINGH DEO GROUP OF BHOPAL ON 13.7.2007. ON THE BASIS OF THESE INCRIMINATING DOCU MENTS PROCEEDINGS WERE VALIDLY INITIATED U/S 153C. ACCORDI NGLY, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FO R UPHOLDING THE VALIDITY OF INITIATION OF PROCEEDINGS U/S 153C. 13. IN THE RESULT, THE APPEALS IN I.T(SS).A.NOS. 253 TO 255/IND/2012 ARE ALLOWED IN PART, WHEREAS APPEALS I N I.T(SS).A.NOS. 247 TO 249/IND/2012 AND 250 TO 252/IND/2012 ARE DISMISSED. -: 18: - 18 THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 5 TH MARCH, 2013. SD/- SD/- (JOGINDER SINGH) (R. C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 5 TH MARCH, 2013. CPU* 282.4.5.3