TMI Blog2014 (10) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... essment framed u/s 143(3) of the Act was in consonance with the provisions of the statute. The AO had doubted the paying capacity of Mr. Banerjee and no material had been produced to show that Mr. Banerjee had the capacity to pay the amount - The affidavit of Mr. Banerjee by itself would not be sufficient to conclude that he had the capacity to pay the amount in the absence of any supporting material to substantiate the availability of funds with him to give it to the assessee – Tribunal rightly noted that no details have been placed on record as to what was the compromise between the two parties and how the deal was called off - There are variations in all the documents and in the name of the purchaser and no witness to the agreement. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in confirming the regular assessment made under section 143(3) by ACIT Central Circle-I, Jalandhar, for Assessment Year 2001-02 as valid, without first deciding whether he was vested with a competent jurisdiction over the appellant, when the block assessment had been dropped by him? C) Whether in the facts and circumstances of the case, the ld. ITAT was correct in holding that the warrant for requisition issued under section 132A remained unexecuted, simply because the cash seized by FEMA authorities was not handed over to AO, even when books of account and other documents were already handed over, and whether such a finding is not contrary to clause (b) to Explanation 2 of section 158BE where under the authorization u/s 132 is deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th cash amount of ₹ 12,30,000/- was seized. The vehicle of the assessee was intercepted by the Police at Phagwara on 29.1.2001 while the assessee was on the way back to Jalandhar from Delhi and cash amount of ₹ 15,85,350/- out of ₹ 16,00,000/- was taken in custody. FIR under Sections 411/414 of the Indian Penal Code and Sections 3(b) and 3(c) of the FEMA was also registered in this regard on the same day. Subsequently, the income tax authorities issued warrant of authorization under Section 132A of the Act to the FEMA authorities for obtaining the said amount of ₹ 12,30,000/-. The assessee filed return of income on 3.11.2001 for the assessment year 2001-02 declaring the income at ₹ 38,430/- with the regular war ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though it was telescoped against the addition of ₹ 12.30 lacs cash seized. Feeling aggrieved against the assessment order, the assessee filed an appeal before Commissioner of Income Tax (Appeals) who vide order dated 19.3.2010 (Annexure A-2) upheld the order of the Assessing Officer and dismissed the appeal. Still dissatisfied, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 19.12.2013 (Annexure A-3) partly allowed the appeal. Hence, the present appeal. 3. Learned counsel for the assessee-appellant submitted that the assessee could have been assessed under Section 158BC of the Act and not under Section 143(3) of the Act as warrant of authorization under Section 132A of the Act stood executed. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been able to show that any prejudice has been caused to the assessee by framing of regular assessment under Section 143(3) of the Act. 5. In view of the above and in the facts and circumstances, the assessment framed under Section 143(3) of the Act was in consonance with the provisions of the statute. Thus, the first contention is rejected. 6. Adverting to the second submission, the Tribunal on appreciation of material on record came to the conclusion that the amount was unaccounted in the hands of the assessee. The Assessing Officer had doubted the paying capacity of Mr. Banerjee and no material had been produced to show that Mr. Banerjee had the capacity to pay the amount. The affidavit of Mr. Banerjee by itself would not be su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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