Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1053 - AT - Income TaxAssessment u/s 153A - HELD THAT:- We have no hesitation to hold that the assessment framed u/s 153A of the Act is bad in law and deserves to be quashed.Since we have set aside the assessment itself, we do not find it necessary to dwell into the merits of the case. Before closing, we have to point out that the DR has placed reliance on the decision of the Supreme Court in the case of Mukundray K. Shah [2007 (4) TMI 201 - SUPREME COURT]. We find that the facts of this case are clearly distinguishable from the facts of the case in hand in as much as in that case, the Revenue came to know about the transaction, triggering the provisions of section 222e of the Act from the diary found during the search proceedings. Whereas in the case in hand, the sale deeds found at the time of search were same sale deeds which were considered by the Assessing Officer at the time of assessment proceedings u/s 143(3) of the Act. Disallowance u/s 40A(3) - amount of ₹ 1.05 crores towards purchase of land has been paid to various persons in cash - HELD THAT:- The primary object of enacting section 40A(3) of the Act was two-fold – firstly, putting a check on trading transactions with a mind to evade the liability of tax on income earned out of such transaction, and secondly, to inculcate the banking habits amongst the business community. In our understanding, this provision was directly related to curb evasion of tax and inculcating banking habits. Therefore, once the genuineness of the transaction is accepted and the payees are identified, then the intention of inserting the provisions of section 40A(3) is fulfilled. Considering, we do not find any merit in the additions made by the Assessing Officer. We, accordingly, direct the AO to delete the addition. - Decided in favour of assessee.
|