Section 153A – Copies of sale deeds of land found during the course of search operation which were already considered by the AO while framing the assessment u/s. 143(3) cannot be considered as incriminating material and, therefore, the assessment framed u/s. 153A on the basis of the contents of the same sale deeds is bad in law.

35.  [2019] 197 TTJ 502 (Delhi – Trib.) Lord Krishna
Dwellers (P) Ltd vs. DCIT ITA No.:
5294/Del/2013 A.Y.:  2006-07. Dated: 17^th December, 2018.

Section 153A – Copies of sale deeds of land
found during the course of search operation which were already considered by
the AO while framing the assessment u/s. 143(3) cannot be considered as
incriminating material and, therefore, the assessment framed u/s. 153A on the
basis of the contents of the same sale deeds is bad in law.

FACTS

A search operation
was conducted at the premises of the assessee on 21.01.2011. Original return of
income was filed on 21.11.2006 and the assessment was framed u/s. 143(3) of the
Act vide order dated 13.05.2008. During the course of original assessment
proceedings the details of vendors from whom the land was purchased during the
F.Y. 2005-06 alongwith copies of land deed were furnished for verification.
After considering all this, the Assessing Officer framed the assessment. The
same sale deeds were found during the course of search operation and on the
basis of the very same sale deeds, the Assessing Officer came to the conclusion
that an amount of Rs.1.05 crore has been paid to various persons in cash.

Aggrieved by
the assessment order, the assessee preferred an appeal to the CIT(A). The
CIT(A) confirmed the same.

HELD 

The Tribunal
held that the sale deeds, transactions when duly recorded in the regular books
of account, could not be considered as incriminating material found during the
course of search operation. It was not the case of the Revenue that if the
search and seizure operation had not been conducted, the Revenue could never
have come to know that the assesse had entered into various purchase
transactions of land. The contention of the Departmental Representative that
though the deeds were before the AO, but he examined the deeds only to
ascertain the circle rate vis a vis the transaction rate and never went into
the cash transactions reflected in the land deed was not acceptable. Once a
document is filed before the AO during the course of search proceedings it is
assumed that he has gone through the contents of those documents and has
verified the same.

The copies of sale deed filed by the revenue
were the same which were considered by the AO while framing assessment u/s.
143(3). Therefore the assessment framed u/s. 153A was bad in law and was
quashed.