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2016 (12) TMI 1876 - AT - Income TaxAddition on account of unexplained investment u/s 69 - parties were alleged to be paper-company of M/s. M.D. Patel Group - HELD THAT:- Similar issues reached ITAT in various cases including Smt. Alkaben Amrutram Guru and Smt Kanchanlal Natwarlal Rana [2016 (8) TMI 1563 - ITAT AHMEDABAD] as observed that these assessees are connected to M/s. M.D. Patel Group thus facts about Settlement Commission owning up of the income by the kingpin M/s. M.D. Patel Group etc. are not on the record. In view thereof these appeals are set aside and restored back to the file of the Assessing Officer to call the assessees to demonstrate that the subject matter raised in these appeals is covered by the alleged settlement petition of M/s. M.D. Patel Group and the result thereof. It is made clear that the Assessing Officer will verify necessary records and the assessees will fully co-operate in this matter. In case of non-cooperation by the assessees, the ld. Assessing Officer will be at liberty to take appropriate view in accordance with law. Accordingly, both the appeals are allowed for statistical purposes. Addition of additional grounds - addition made on unexplained gifts received by the assessee and on substantive basis on account of alleged unexplained capital/interest income/donation etc - HELD THAT:- All these issues involve Settlement Petition and income owned up by M/s. M.D. Patel Group in respect of all the constituents. It is not disputed that the assessee is connected to M D Patel Group and the fact that the additions in question are subject matter of reassessed income as well as impugned reframing of assessment u/s 143(3) r.w.s. 263 of the Act. The doubt of ld. DR that the additional grounds will require verification of fresh evidence and facts seems to be out of place inasmuch as the relevant record of the Settlement Petition and other relevant evidence is on the record of the AO in multiple proceedings. In any case, host of assessments are being set aside and restored back to the file of AO in view the Settlement Petition and owning up of income by M/s. M.D. Patel Group. Consequently the application for admission of additional grounds deserves merit. In consideration of entirety of facts and circumstances, contentions and judicial precedents relying on the judgments of National Thermal Power Corporation & Jute Corporation of India Ltd (supra), the additional grounds as raised by the assessee are admitted. Following the ITAT judgment in the case of Smt. Alkaben Amrutram Guru and Kanchanlal Natwarlal Rana (supra) to which the undersigned is a party, the assessments are set aside which will include the admitted additional grounds as above
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