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2014 (10) TMI 535 - PUNJAB & HARYANA HIGH COURTTransfer of jurisdiction from regular assessment u/s 143(3) to make block assessment u/s 158BC - Non-execution of warrants of authorization – Seized cash not handed over by FEMA authorities – Commission earned on the distribution of compensatory payments - Held that:- The assessment u/s 158BC of the Act is a special provision and the conditions prescribed thereunder are required to be satisfied before any action for block assessment can be initiated - The assessee had not even paid the taxes due as per return filed for the block period and the AO had rightly dropped the proceedings under Chapter XIV-B of the Act - the assessment 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. As regards the identity, credit worthiness and genuineness of the transaction, filing of the affidavit does not prove credit worthiness and genuineness of the transaction and it is a story which has been fabricated as a subterfuge to explain the seized cash of ₹ 16 lacs - CIT(A) rightly rejected the contention of the assessee and has rightly confirmed the action of AO – thus, no substantial question of law arises for consideration – Decided against assessee.
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