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2015 (11) TMI 993 - AT - Income TaxAssessment under section 153A - assessment of HUF - Held that:- Name of the HUF, who is separate taxable entity, is no where available in the Panchnama. It is also pertinent to note that all the members of the HUF were not covered under the search action. In section 153A, nowhere it has been provided that if the search is conducted on the partners, in their individual cases, then the firm would automatically deem to have been covered under search action. Similarly, there cannot be any implied search action on the HUF merely on the ground that some of the individual members of the HUF were covered under the search action. For invoking jurisdiction, there cannot be any implied operation of law. It should be specific and direct. Thus, no search was conducted on the HUF, and therefore, no order under section 153A ought to be passed. - Decided in favour of assessee. Addition under section 69B - claim of long term capital gain exempt from tax rejected - Held that:- Once the assessee has been pleaded that it has made purchase of shares through Swan Securities Pvt. Ltd. and Swan Securities Pvt. Ltd. has trust in the assessee of payment, then actual payment not made before 31st March would not create any dent in the transaction of the assessee. The ld.AO failed to point out any defect in the confirmation of Swan Securities Pvt. Ltd. or any documents furnished to him in response to his query under section 133(6) of the Act. The shares have actually been sold by the assessee. It means it must have been purchased. The purchase and sale both happen before the date of search. There cannot be any specific reason for the assessee to make such a claim after the search, because nothing discriminatory qua this transaction was found. If the Swan Securities Pvt. Ltd. has confidence of recovery of its amount incurred for purchase of shares at the instructions of the assessee, then, merely on account of the reason that payment was outstanding, transaction cannot be doubted. The payment has been subsequently made reflects the relationship between Swan Securities Pvt. Ltd. and the assessee. - Decided in favour of assessee.
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