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2017 (5) TMI 61 - ITAT DELHIAssessment order completed under section 153A - Held that:- According to section 153A(1)(b) of the Act, in case of a person where a search is initiated under section 132 of the Act after 31st of May, 2003, the Assessing Officer shall assess or reassess the total income of six assessment years immediately preceding assessment year relevant to the previous year in which such searches is conducted. Since in the case of the assessee, second search was conducted on 25/08/2006, the relevant six assessment years to be assessed are from assessment year 2000-01 to 2006-07. Since the year under consideration is well within the period to be considered for assessment or reassessment, corresponding to the second search action dated 25/08/2006, the Assessing Officer has rightly completed assessment under section 153A r.w.s 143(3) of the Act after taking prior approval of competent authority, and thus, in our opinion, there is no error in the provisions of the Act under which assessment is framed Addition of expenses incurred on guest house for the purpose of business of the company - Held that:- the appellant has not discharged the onus cast on him by the provisions of Section 37(1) of the Act. No submissions/evidence is filed to rebut the presumption u/s 132(4A) of the Act regarding the expenditure mentioned in the documents seized during the search. In view of totality of facts and circumstances, the addition made by the Assessing Officer is sustained Disallowance of land development expenses - Held that:- We find that the assessee even did not furnish confirmation letters from the alleged contactors to establish the services rendered by them. This was the basic requirement, which the assessee was required to fulfill to discharge his onus particularly in the circumstances when many persons alleged to be contactors have admitted of not carrying out any contract work for the assessee. In the circumstances, we feel it appropriate to restore the issue of disallowance of land development expenses to the file of the Assessing Officer for examining afresh and decide after carrying out necessary Inquiries as deemed fit. It is needless to mention that assessee shall be afforded sufficient opportunity of hearing. Accordingly, the grounds of appeal raised by the Revenue are allowed for statistical purpose.
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