TMI Blog2012 (12) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... icial Member:- These are cross-appeals filed by the assessee and Revenue and Cross-Objection (CO) filed by assessee which are directed against the common order of Ld. Commissioner of Income-tax (Appeals)-III, Ahmedabad of even date i.e. on 11-11-2009 pertains to assessment year 2006-07. The assessee has raised the grounds of appeal arose from the result of search operation u/s. 132(2) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) in the case of Sanjay R Shah and Meeghmani Group therefore all have been heard together and are being disposed of by this consolidated order for the sake of convenience. First we take up assessee s appeal in IT(SS) No.99/Ahd/2010 . 2. The assessee has raised the grounds of appeal:- 1. In law and in the facts and circumstances of the appellant s case, the order passed by CIT(A) is bad in law and deserves to be cancelled as he has passed an order without considering and appreciating the facts of case of appellant. 2(a) In law and in the facts and circumstances of the appellant s case, the provisions of the Income Tax Act under which the assessment order is framed is not applicable to the assessment in question and thus the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order is bad in law and hence deserves to be cancelled. 2. In law and on the facts and circumstances of the case, the learned Assessing Officer has passed the present order without having any jurisdiction on the assessee and hence the assessment order is without jurisdiction and thus illegal and void ab initio. 3. In law and on the facts and circumstances of the case, the provisions of the Income-tax under which the assessment order is framed is not applicable to the assessment in question and thus the assessment order passed is illegal and void ab initio It requires to be cancelled on this ground itself. 4. In law and on the facts and circumstances of the case, the learned Assessing Officer has grossly erred in making the addition of Rs.96,000 for unexplained household expenses when no such addition is called for. It may be deleted. 5. In law and on the facts and circumstances of the case, the learned Assessing Officer has grossly erred in making the addition of Rs.1,15,880 for undisclosed business income when no such addition is called for. It may be deleted. 6. In law and on the facts and circumstances of the case, the learned Assessing Officer has grossly erred in ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns filed by the assessee in the departmental appeal, the assessee has again challenged the validity of the assessment order. At the outset, the assessee respectfully submits before your Honours hat the Cross-objections filed by the assessee being C.Os. No.100/A/2010 in departmental appeal is not pressed. Hence, the same may kindly be dismissed as sot pressed. In this connection, we have to bring to your Honour s kind notice, the order dated 7-6-2012 passed by the Hon ble ITAT, Ahmedabad Bench-D in other assessees of the same group wherein similar issue was involved challenging the validity of the assessment order and on the same ground, your Honours have taken a decision vide para-7 on page-7 of the said order as under:- We find that assessee had challenged jurisdiction as well as validity of the initiation of the assessment order passed by Assessing Officer u/s. 153A/153. It is the contention of Ld. AR that admittedly no search operation was conducted at the premises of the assessee and no document was recovered from the premises of the assessee and no document was recovered from the premises of the assessee. We find that Ld. CIT(A) has not decided this issue despite a spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jalaram Trading Co. However, the books of accounts were not maintained and the assessee failed to furnish infomation/details which was repeatedly required, vide notices/questionnaires. The AO therefore felt that provisions of section 44AF were applicable in case of assessee who was a retailer and so estimated the income of Rs.1,15,880/- on the turnover of Rs.30.07 lakhs (after deducting the disclosed business income of Rs.34,501/-). The AO also observed that creditors/depositors to the extent of Rs.12,85,197/- were shown in the balance-sheet as on 31/3/2006 of which no details were filed. Hence he treated them as unexplained cash credit. The AO further observed that the documents seized from the residence of one Lalitbhai K Patel and Kanjtibhai Patel, particularly page 94 of annexure A4, revealed that the land comprised in Block No. 95, 96 and 113 in Jethalpur had been transacted for a consideration, much higher than was disclosed in the returns of the owners, including the append so capital gains have been understated to the extent of Rs.4,78,535/-. 5.A In pages 6 to 11 of his order, the AO discussed the status of the land in Survey No.95, 96, its acquisition by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20,000 50,000 Nil 85,000 37,050 Mayank S Patel A/c 3794ADC Bank Jetalpur Nil 341 24,078 Nil 50,316 - Nil Manoj S Patel A/c 3012 ADC Radhakrishna Rice Mills 8,400 5,500 50,000 20,000 30,000 2,500 Nil 23,700 107,591 Shobhanaben D Patel A/c 3040 Dena Bank Jetalpur 54,000 54,000 54,000 60,000 59,474 30,000 14,000 Total 369,965 428,788 403,821 148,500 109,790 340,575 204,641 Sale proceeds of Agri. income as per bills enclosed -- 89,277 -- -- 153,914 96,500 358,075 Total 360,965 518,065 403,821 148,500 263,704 437,075 562,716 Additions made 336,000 409,200 446,400 483,600 520,800 558,000 595,200 The explanation given about the availability of agriculture produce, community living in small town can also not be discounted. The AO has not brought any evidence on record to suggest that household expenditure incurred were more than what was disclosed by the appellant/family members. Similar addition(s) in A.Y 2005-06 was deleted by CIT(A) in order dated 27/1/2009. In these circumstances, the additions for househol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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