Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 8 - AT - Income TaxAssessment u/s 153A - JCIT has not applied his mind properly before giving approval - limitation as prescribed u/s. 153D - assessee submitted that the AO sent the draft assessment order before the JCIT for taking approval u/s. 153D of the Act of near about 75 cases on 29th December, 2017 and the ld. JCIT approved the draft assessment order on the same date - HELD THAT:- The provision of Section 153D of the Act states regarding making of the order within the stipulated period. Further from the reading of the provisions of Section 153D it is clear that there is no mention about the "service" of the order, however, it is only mentioned that the order shall be "made". With regard to "service" it has clearly been defined in the section 143(2) of the Income Tax Act but in section 153D nowhere about service of order has been mentioned. The case laws relied on by the ld. AR of the assessee in the case of Dilip Constructions Pvt. Ltd.[2019 (12) TMI 311 - ITAT CUTTACK] is not applicable in the present facts of the case. Accordingly, we dismiss the legal grounds taken by the assessee. Addition on the documents found in the premises of Jami Siva Sai during the course of search proceedings - HELD THAT:- We are of the view that the AO is not justified in making the addition in the hands of the assessee of ₹ 75 lakhs. The AO did not follow the prescribed procedures, which ought to have been followed in cased of documents which was found in the case of other persons as prescribed u/s. 153C of the Act. Therefore, the entire addition made by the AO along with the interest made thereon is not correct. Accordingly, we delete the addition and interest charged. With regard to ground No. 4: since we have deleted the entire addition made by the AO and decided the appeal of the assessee on merits of the case, therefore, this ground is consequential in nature. Thus, the ground taken by the assessee on merits is allowed. Unexplained money u/s. 69 - HELD THAT:- Merely found the documents and if there is no transaction it cannot be said that the assessee has done the transactions outside his books of accounts or merely found the documents in the name of anybody cannot be said that the transactions have been occurred unless and until it is not established by confirmation from both the parties. Therefore, this addition made by the AO is deleted and this ground of appeal of the assessee is allowed. Addition u/s. 69 as unexplained money - agricultural income - HELD THAT:- Assessee not filed any supporting documents for agricultural income so that the agricultural income can be justified. We also observed that the figures of agricultural income is very zig-zag. Therefore, as per our considered opinion, this issue should go back to the file of AO for verification of accumulation of cash as stated above and the assessee is directed to prove the source of income shown as above. The assessee will also cooperate with the AO for above purpose without seeking any unnecessary adjournments. Needless to say, the assessee shall be provided reasonable opportunity of being heard to substantiate his claims. Thus, this ground of the assessee is allowed for statistical purposes. Unexplained investment in gold ornaments - HELD THAT:- CIT(A) has allowed 350 grams of gold ornaments. During the course of search proceedings, total gold were found at 4489.980 grams out of which the authorities below have allowed 2400 grams and remaining gold 1473.580+616.400 = 2089.980 were disallowed. After going through the records of the authorities below, we noted from the para 9 of the assessment order, that the assessee had filed confirmation letter of the persons whose name as stated above but these confirmations have not been disregarded by the AO as well as it has not been considered by the CIT(A).only 1003.80 grams belongs to the assessee and rest jewellery belongs to the respective names as mentioned above. This fact has not been controverted by any of the authorities below. Therefore, the remaining jewellery should be taxed in the hands of the respective names/owners. The assessee is required to explain only 1003.580 grams. Since the assessee is a male person so he is entitled for as per CBDT Instruction No. 1916 of 1994 and he is entitled for 100 grams of jewellery. Further, considering the status of the assessee, being a senior citizen of 73 years old, who belongs to well-established family and looking to the religious functions and marriage ceremonies in the family of the assessee, we deem it proper to allow 200 grams gold out of 903.580 (1003.580-100) grams. Now, gold remained to be explained by the assessee of 703.580 grams, out of which 616.400 grams gold were purchased from the HUF's fund as claimed by the assessee. Thus, if the assessee would be able to justify the cash availability in the hands of the HUF before the AO and it would be able to nullify the observation of the CIT(A) i.e. production of purchase bill, then the assessee will get relief of 616.400 grams or to the extent possible and the rest quantity is hereby disallowed. Accordingly, we restore this issue to the file of AO to consider the claim of the assessee as per our above observations. This ground of appeal of the assessee is partly allowed for statistical purposes.
|