Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 675 - AT - Income TaxReopening of assessment u/s 147 - unaccounted investment in the land was based on the documents seized from the premises of 3rd party - Use of materials seized and the statement furnished by the third parties against the assessee - HELD THAT:- The answer stands in affirmative. It is for the reason that the opportunity for the rebuttal to the assessee for the seized documents and the statements recorded under section 132(4) of the Act are sine qua non in order to meet the principles of natural justice. This requirement has to be complied with by the revenue even in a situation where the assessee does not demand for the seized materials/statements recorded under section 132(4) of the Act if revenue seeks to make the addition on the basis of such material and statement. It is for the simple reason that the documents which have been relied upon by the revenue for making the addition to the income of the assessee has to be provided to the assessee for the rebuttal - See VARSHABEN BHARATBHAI SHAH [1996 (2) TMI 107 - GUJARAT HIGH COURT]. Since, the due process of providing the opportunity for the rebuttal of the assessee has not been done, the additions made in the assessment under section 143(3) read with section 147 of the Act are not sustainable. Assessment in the case of co-owners - Also there was the search proceedings with respect to the co-owner namely Kanchanbhai Baldevbhai under the provisions of section 132 of the Act. As a result of search proceedings, assessment order was framed under section 153A of the Act where addition was made on account of unaccounted investment in the land as discussed above which was subsequently deleted by the learned CIT (A) - we find that the issue on merit was not decided rather the appeal was decided on technical reason that there cannot be any addition with respect to the unabated assessment years until and unless there was found some document of incriminating nature. Admittedly, there was no document found from the premises of the co-owner in the course of search with respect to the impugned unaccounted investments. Further, the order of the learned CIT (A) was not maintainable before the ITAT for the simple reason that the tax effect in the dispute was less than ₹ 50 lacs. Issue in respect of the co-owner has reached to the finality that there was no addition made in his hand despite he was the co-owner in the deal of purchase of the land as discussed above. Thus to our understanding, there cannot be any addition in the hands of the assessee being the co-owner of the property purchased from the party namely Smt. Pareshben D Modi. Hence, we set aside the finding of the learned CIT (A) and direct the AO to delete the addition made - Decided in favour of assessee.
|