{"id":63632,"date":"2026-08-03T23:13:44","date_gmt":"2026-08-03T17:43:44","guid":{"rendered":"https:\/\/itatonline.org\/digest\/naval-kishore-v-dy-cit-2025-122-itr-23-jaipurtrib\/"},"modified":"2026-08-03T23:13:44","modified_gmt":"2026-08-03T17:43:44","slug":"naval-kishore-v-dy-cit-2025-122-itr-23-jaipurtrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/naval-kishore-v-dy-cit-2025-122-itr-23-jaipurtrib\/","title":{"rendered":"Naval Kishore v. Dy. CIT (2025) 122 ITR 23 (Jaipur)(Trib.)"},"content":{"rendered":"

The search conducted at the assessee’s premises did not result in seizure of any incriminating material. The additions were based entirely on documents found during the search of another person. The Tribunal held that section 153A permits additions only on the basis of incriminating material found during the search of the assessee. Material seized from a third party, if at all relevant, could be used only by invoking section 153C. Consequently, assumption of jurisdiction under section 153A was held to be invalid. The Assessing Officer made an addition merely because the income disclosed in the return filed under section 153A differed from the original return. The Tribunal held that the assessee had filed a revised computation during the assessment proceedings itself, offered the correct income and paid the due taxes. The addition was based only on suspicion and not on any material establishing suppression of income. The addition was therefore deleted. The Revenue alleged that the assessee received undisclosed consideration from sale of plots in a real estate project. The Tribunal found that all sale transactions were duly recorded in the books of account and no evidence was brought on record to establish receipt of any amount over and above the disclosed consideration. The addition towards undisclosed income was accordingly deleted.\u00a0\u00a0 The Assessing Officer treated project development expenditure as unexplained expenditure in the hands of the assessee. The Tribunal held that the assessee was merely the landowner and all development expenditure had been incurred by the other project associates. As the Revenue ignored the assessee’s explanation and failed to establish that the expenditure had been incurred by him, the addition was deleted. <\/strong>The assessee furnished plot-wise details of sale proceeds deposited into the bank account together with supporting documents. The Tribunal held that the Commissioner (Appeals) accepted the documentary evidence and the revised computation but still enhanced the gross profit rate without any supporting material. Since the source of deposits stood established, the addition under section 68 and the enhanced profit addition were deleted. <\/strong>The Revenue challenged the finding that a particular amount had been counted twice while computing undisclosed income. The Tribunal held that the impugned amount represented only an inter-bank transfer and not an independent receipt. Since the Assessing Officer failed to controvert the factual finding, no addition under section 68 could be sustained. The Tribunal held that the assessee had explained the nature and source of the bank credits through documentary evidence. The Assessing Officer disputed only the sale consideration and not the cost of acquisition. In the absence of any contrary evidence, the profit rate adopted by the Commissioner (Appeals) on the basis of seized material was upheld and the Revenue’s appeal was dismissed. \u00a0(<\/strong>AY. 2015-16).<\/p>\n","protected":false},"excerpt":{"rendered":"

S. 153A: Assessment-Search-No incriminating material found during search of assessee-Material seized from third party cannot form basis of assessment under section 153A-Assessment invalid-Return filed in response to notice-Revised computation during assessment-Addition based on difference from original return-Not justified-Undisclosed income-Sale of plots-Transactions duly recorded in books-No evidence of suppression-Addition deleted-Unexplained expenditure-Development expenses-Assessee only landowner-Expenditure incurred by associates-Addition deleted-Cash credits-Sale proceeds of plots deposited in bank-Source explained-Enhancement of profit by Commissioner (Appeals) deleted-Inter-bank transfer-Amount taxed twice as unexplained credit-Addition deleted-Cash credits-Documentary evidence explaining source-Addition restricted to profit element upheld. [S. 68, 69, 69C, 132, 139 153C] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63632","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gyk","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63632"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63632\/revisions"}],"predecessor-version":[{"id":63633,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63632\/revisions\/63633"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}