Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (9) TMI 961

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 27-03-2006. The period of 12 months for issuing notice u/s 143(2) expires on 31-03-2007. It is also not disputed that the Commissioner of Income-tax by an order dated 27-11- 2007, in exercise of his powers u/s 127(2) transferred the jurisdiction from Ward.1, Ernakulam to DyCIT / ACIT, Central Circle.1, Ernakulam. Therefore, the assessing officer of the assessee, the DyCIT / ACIT Central Circle, Ernakulam might have received the records on or after 27-11-2007 only and certainly not before that. Therefore, the assessment proceedings on the basis of the return of income filed in the regular course on 27-03- 2006 got terminated by operation of law on 31-03-2007. Assessment proceedings on the basis of the return of income filed on 27-03-2006 is not pending as on 27-11-2007 when the assessing officer is supposed to have received the seized document of the assessee. Hence, the income disclosed in the return filed in regular course on 27-03-2006 on the basis of the balance-sheet as on 31-03-2005 cannot be disturbed by the assessing officer unless there is a specific material found during the course of search operation. In this case, it is not in dispute that there is no material found .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssessment u/s 143(1) was completed and attained finality before satisfaction was reached by the AO who initiated proceedings u/s 153C of the Act. 2. In the event of proceedings u/s 153C being valid, whether the Hon'ble Accountant Member was justified in setting aside the order of the ld CIT(A) on merits for re-examination. 2. The Hon'ble Third member has agreed with the view taken by the Hon'ble Judicial Member in respect of both the questions referred above. Accordingly, as per the majority view, the appeal filed by the revenue is dismissed and the Cross Objection filed by the assessee is allowed. 3. In the result, the appeal filed by the revenue stands dismissed and the Cross Objections filed by the assessee is allowed. (Order pronounced in the open Court on this 16.9.2015) IN THE INCOME TAX APPELLATE TRIBUNAL BENCH, COCHIN ITA No.472/Coch/2013, CO No.37/Coch/2013 Deputy Commissioner Of Income Tax Versus M/s Royal Cartons Pvt Ltd. D Manmohan, VP, Date of Decision: August 21, 2015 NOTE Consequent to the difference of opinion between Hon'ble Judicial Member as well as Hon'ble Accountant Member, it was requested .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... fficer by the search team. Based on the balance sheet and profit and loss account pertaining to the assessment year 2006-07, the Assessing officer issued notice u/s. 153A r.w.s. 153C of the Act on 12-02- 2008 calling upon the assessee to file return of income within 30 days from the date of receipt of notice. In response to the said notice, the assessee filed its return of income declaring loss of ₹ 2,65,510/-, which was originally returned. It deserves to be noticed that the assessee filed the return of income on 27/03/2006 for the assessment year 2005-06 and the same was processed u/s. 143(1) of the Act and intimation dated 16/02/2007 was forwarded to the assessee. It is not in dispute that the return was processed after initiating the search proceedings in the case of M/s. Matha Enterprises Ltd. It is well-settled that a return processed u/s. 143(1) of the Act can be taken up for scrutiny by issuing notice u/s. 143(2) of the Act within a period of 12 months from the date of filing of return of income. In this case, notice u/s. 143(2) could have been issued on or before 31/03/2007. No such notice having been issued, the proceedings u/s. 143(1) of the Act attained finality. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... iction over such other person, shall be the relevant date for consideration as to whether the jurisdiction was invoked properly or not. In other words, that date should be determined as the date of initiation of search. In this case, the seized documents would have been handed over to the Assessing officer on or after 27/11/2007 by which date assessment proceedings completed on the strength of return filed on 27/03/2006 attained finality. Since assessment proceedings attained finality, by operation of law, the same cannot be re-opened by invoking provisions of section 153C of the Act. The Ld. Judicial Member extracted the provisions of section 153C to highlight that the said section comes into play only when an assessment has to be made on a person, other than a person searched, subject to fulfilling two conditions, i.e., (1) a finding that money bullion, jewellery or other valuables or books of account or other documents seized belongs to a person other than the searched person (2) the same has to be handed over to the AO having jurisdiction over such person, other than searched person, for proceeding further. Thereafter the concerned Assessing officer has to record satisfaction. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 377; 12,42,000/- was disclosed. He, accordingly, deleted the addition on the ground of lack of jurisdiction to initiate proceedings u/s. 153C of the Act. 7. The Ld. Accountant Member was however of the opinion that the bunch of loose sheets containing balance sheet and profit and loss account reveals the income of the assessee which would be sufficient for the Assessing officer to reopen the assessments u/s. 153C of the Act. In his opinion, the documents seized during the course of search in the premises of the assessee, can be treated as incriminating material. The Ld. AM also extracted provisions of section 153A and 153C of the Act and observed that proviso to section 153A mandates Assessing officer to assess or reassess the total income in respect of each assessment year falling within six assessment years. The proviso further mandates that any assessment or re-assessment in respect of any of those six years which are pending shall not abate. In his opinion, a careful perusal of the provisions show that the assessments have to be compulsorily made for all the six years and nowhere it is mentioned that no regular assessment or re-assessment can take place for any particular ye .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... umstances of the case, when the assessee filed the return of income on 27-03-2006 and the assessment proceedings are terminated by operation of law on expiry of time limit for issuing notice u/s. 143(2) on 31-03-2007 and the books of account of the assessee received by the Assessing officer on or after 27-11-2007, whether the addition made by the Assessing officer to the extent of ₹ 12,42,000/- was correct especially when copy of the balance sheet said to be found during the course of search operation was filed by the assessee along with the return of income on 27/03/2006 itself? (2) In the facts and circumstances of the case, is it proper for a judicial authority/Tribunal to place reliance on the decision/judgment of the Bangalore Bench of this Tribunal dated 05/12/2014 in Nandini Deluxe vs. ACIT in I.T.A. Nos. 446 to 448/Bang/2013 (ld. AM referred the order in paragraph 4.10 of his order) especially when the present appeal itself was heard on 29/10/2014 itself (two months before the order of the Bangalore Bench) without giving any opportunity to both parties? 11. The Ld. Accountant Member on the other hand was of the opinion that the questions framed by the Ld. J .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erits for re-examination. 15. The Ld. DR submitted that the assessee has not furnished any explanation before the Assessing officer and hence the Assessing officer was justified in making additions. He also submitted that the balance sheet and the profit and loss account pertain to the period 01/04/2005 to 31/03/2006 which shows that the assessee had sufficient income and therefore, that can be taken as incriminating material for the purpose of invoking provisions of section 153C of the Act. 16. On the other hand, the Ld. Counsel for the assessee submitted that the proceedings initiated by the Assessing officer are invalid in law since there is no incriminating material found during the course of search. The concerned assessment year was 2005-06. He mainly contended that the assessment proceedings for the assessment year 2005-06 are terminated by the operation of law on expiry of time limit for issuing notice u/s. 143(2) on 13-02-2007 whereas the loose sheets containing balance sheet and profit and loss account, found during the course of search was received by the Assessing officer on or after 27/11/2007. He also submitted that the Ld. Accountant Member committed an error in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... assessment year 2006-07 to contend that the Department having not preferred any appeal on the findings of the CIT(A), it cannot now be said that it can be treated as incriminating material for the year under consideration. The original return of income filed by the assessee discloses the total figure of sundry creditors and the Assessing officer, while framing the assessment, had taken note of the same and hence, in the absence of specific document found during the search and seizure proceedings, the Assessing officer cannot make any addition in this year wherein proceedings have attained finality. It was also submitted that while drafting 153C of the Act, the legislature did not envisage the situation of third party having to undergo assessment proceedings in six previous years, even if there is no material to indicate undisclosed income in the hands of a third party. Therefore, in section 153C(1) of the Act suitable amendment was made by the Finance Act, 2014 wherein it was clarified that the proceedings u/s. 153C can be initiated only if the Assessing officer is satisfied that the books of account or documents seized or requisitioned have a bearing on the total income of the as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he Third Member in the case of Hotel Royale Park vs. DCIT in I.T.A. Nos. 601-603/Coch/2013 C.O. Nos. 01-03/Coch/2014 wherein the Bench relied upon the decision of ITAT, Kolkata Bench in the case of Trishul Hi-Tech Industries vs. DCIT (I.T.(SS)A. Nos. 84-86/Kol/2011). The relevant observations of Kolkata Bench are extracted for immediate reference: The provisions of s.153C of the Act was amended to obviate practical difficulties which arose in its interpretation from time to time. The amendment made by Finance (No.2) Act, 2014 as the Legislature found that different authorities were assigning different meanings to the provisions. As such, a state of affairs resulted in ambiguities which gave rise to conflicting decisions on subject, the Legislature in its wisdom thought it prudent to change the language thoroughly explicit. It so happened from time to time that during the course of conducting a search and seizure operation u/s. 132 of the Act, money, bullion, jewellery or other valuable article or thing or books of account or documents belonging to another person were seized. On one hand, the seized materials were sent to the Assessing Authority having jurisdiction over the o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ot justified in re-opening the assessment for the assessment year 2005-06 which has attained finality. 26. The Ld. Accountant Member was of the opinion that any document found can be treated as incriminating material. With due respects, I am of the firm view that such document should reflect something to indicate that in the year under consideration, the assessee has not disclosed income whereas, in the instant case, the assessee has filed its return of income much before the date of search and on the strength of the profit and loss account and the balance sheet filed before the Assessing officer, the return was processed u/s. 143(1) of the Act. In fact, there was clear finding by the Ld. CIT(A) in his order, in respect of assessment year 2006- 07, wherein it was stated that there was no incriminating document found during the course of search; the Revenue has not preferred any appeal against the order of the CIT(A). Under these circumstances, it cannot be said that the same document can be treated as incriminating material for the assessment year under consideration. Since Point No. 1 is decided in the negative, i.e. the document found cannot be considered as incriminating docu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sentative, the seized document could have been handed over only on or after 27-11- 2007 and definitely not earlier to that. Therefore, according to the ld.representative, the proceedings on the basis of the return filed by the assessee on 27-03-2006 were terminated by operation of law on 31-03- 2007. Therefore, according to the ld.representative, the assessment which was completed on the basis of the regular return of income filed cannot be reopened in view of the specific provision contained in section 153A of the Act. 3. The ld.representative further submitted that the notice requiring the assessee to file the return of income u/s 153C r.w.s. 153A was issued only on 12-02-2008. Therefore, the completed proceedings cannot be reopened. Referring to the assessment order, the ld.representative submitted that no material was found during the course of search operation. The only material relied upon by the assessing officer is the balance-sheet as on 31-03-2005 filed alongwith the return of income e. The assessee has disclosed the unsecured creditors in the balance-sheet filed alongwith the return of income filed in the regular course on 27-03- 2006. Therefore, the unsecured credito .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... section 153, where the Assessing Officer is satisfied that any money, bullion, jewelry or other valuable article or thing or books of account or documents, seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A: Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to subsection (1) of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. (2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Asse .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... assessment shall be made on the basis of the seized material and other material found on record. However, in respect of the assessment proceeding which is not pending on the date of search has to be made only on the basis of the material found during the course of search operation. The completed proceedings on the date of search cannot be reopened by the assessing officer. In the case before us, admittedly, the assessee has filed the return of income on 27-03-2006. The period of 12 months for issuing notice u/s 143(2) expires on 31-03-2007. It is also not disputed that the Commissioner of Income-tax by an order dated 27-11- 2007, in exercise of his powers u/s 127(2) transferred the jurisdiction from Ward.1, Ernakulam to DyCIT / ACIT, Central Circle.1, Ernakulam. Therefore, the assessing officer of the assessee, the DyCIT / ACIT Central Circle, Ernakulam might have received the records on or after 27-11-2007 only and certainly not before that. Therefore, the assessment proceedings on the basis of the return of income filed in the regular course on 27-03- 2006 got terminated by operation of law on 31-03-2007. In other words, the assessment proceedings on the basis of the return of in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e and therefore no addition u/s 153C should have been made. 3. In this case, there was a search operation u/s 132 of the I T Act at the business premises of M/s. Matha Enterprises on 13.2.2007. During the course of search, bunch of loose sheets containing Balance sheet, P L account etc., which reveal the income of the assessee were seized. Subsequent to the search, notice u/s 153A r.w.s. 153C of the Act dated 12.2.2008 was issued requiring the assessee to file return of income . The said notice was served on the assessee on 18.2.2008. In response to the said notice, the assessee filed its return of income on 30.4.2008 declaring a loss of ₹ 2,65,510/- which was originally returned. There was an unsecured creditor in the balance sheet as on 31.3.2005 filed with the return of income for which the AO called for confirmation, which was not filed and the same was considered as unexplained credit. 3.1 The ld AR now submitted before us that the framing of assessment u/s 153C r.w.s 153A/143(3) of the Act is bad in law. According to the ld AR, section 153C of the act confers jurisdiction, if the AO is satisfied that document' seized belong to a person other than the person r .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uch search is conducted or requisition is made: Provided that the AO shall assess or reassess the total income in respect of each assessment year falling within such six assessment years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this section pending on the date of initiation of the search under s. 132 or making of requisition under s. 132A, as the case may be, shall abate. (2) If any proceeding initiated or any order of assessment or reassessment made under sub-(1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-so (1) or s. 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-so (1), shall stand revived with effect from the date of receipt of the order of such annulment by the CIT : Provided that such revival shall cease to have effect, if such order of annulment is set aside. 153C. (1) Notwithstanding anything contained in s. 139, s. 147, s. 148, s. 149, s. 151 and s.153, where the AO is satisfied that any money, bu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... next proviso further mandates that any assessment or reassessment in respect of any of those six years which are pending shall abate. Hence, it is clear that under such circumstances, assessment or reassessment will be done pursuant to s. 153A or s. 153C. It will not be correct to interpolate that no regular assessment or reassessment can take place under these provisions. There is no reference to incriminating search materials as in earlier s. 158BB/158BC to which the assessment has to be confined to. 4.2 Sec. 153C only mandates that where the AO is satisfied that the material, including books of accounts or documents seized or requisitioned belongs to other person, then those materials will be handed over to the AO having jurisdiction over the other person. Admittedly, in this case, books of accounts/documents pertaining to assessee were seized and AO had recorded satisfaction in this regard as mandated in the Act. The assessment of undisclosed income is very much based upon the books of accounts/documents. The satisfaction on the part of AO is not in dispute as the assessee is contending that assessment made has to be with reference to incriminating search materials. 4.3 T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . There is no reference to incriminating search materials as in earlier s. 158BB/s. 158BC to which the assessment has to be confined to. See. 153C only mandates that where the AO is satisfied that the material, including books of accounts or documents seized or requisitioned belongs to other person, then those materials will be handed over to the AO having jurisdiction over the other person. Admittedly, in this case, books of accounts/documents pertaining to assessee were seized and AO had recorded satisfaction in this regard as mandated in the Act. The assessment of undisclosed income is very much based upon the books of accounts/documents. The satisfaction on the part of AO is not in dispute as the assessee is contending that assessment made has to be with reference to incriminating search materials. 4.6 Further, The Hon'ble Andhra Pradesh High Court in the case of Gopal Lal Bhadruka v. Deputy Commissioner of Income-tax reported in 346 ITR 106(AP) held that; By virtue of section 158BI of the Act, the various provisions of Chapter XIV-B of the Act are made inapplicable to proceedings under section 153A/153C of the Act. The effect of this is that while the provisions .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rch. In the case, the Court dealt with a situation in which some incriminating material was found in respect of a non-pending assessment. In that situation, the Court held that section 153A of the Act applies if incriminating material is found in the course of search even if assessments are completed. Now the question as to whether any assessment could be made in respect of completed assessments when no incriminating material was found apparently left open by the Delhi High Court. The observation in the judgment appears to indicate a doubt in the mind of the High Court as to whether the proceedings under section 153 A. of the Act can still be initiated. 4.9 It is in this context that the decision of the High Court of Karuataka in the case of Canara Housing Development Co., Vs DCIT in ITA No.38/2014 dt.25.7.2014, assumes significance where it is held that once the assessment is reopened, the Assessing Officer can take note of the income disclosed in the earlier return, any undisclosed income found during the course of search and also any other income which is not disclosed in the earlier return of income or which is not unearthed in the course of search under section 132 of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... after 31.5.2003. These sections, the applicability of which has been excluded, relate to returns of income, assessment and reassessment provisions. As per the provisions of section 153A of the Act, the Assessing Officer is bound to issue notice to the assessee to furnish returns for each assessment year falling within six assessment years immediately preceding the assessment year relevant to the previous year in which the search under section 132 of the Act or requisition under section 132A of the Act, was made. As has been held by the Hon'ble Delhi High Court in the case of Anil Kumar Bhatia (supra), there is no dispute to the proposition that where a search is carried out under section 132 or a requisition under section 132A of the Act, the Assessing Officer shall issue notice requiring the person searched to furnish his return of income in respect of each assessment year relevant to the previous year in which such search is conducted or requisition is made. Therefore, the Assessing Officer gets jurisdiction for passing orders under section 153A of the Act, once search action is initiated, whether or not any incriminating material is found during the course of search action. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... essing Officer will reopen the assessments or reassessments already made (without having the need to follow the strict provisions or complying with the strict conditions of sections 147, 148 and 151) and determine the total income of the assessee. Such determination in the orders passed under section 153A would be similar to the orders passed in any reassessment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income. In such a case, to reiterate, there is no question of any abatement of the earlier proceedings for the simple reason that no proceedings for assessment or reassessment were pending since they had already culminated in assessment or reassessment orders when the search was initiated or the requisition was made. 6.3.6 Therefore, where no incriminating material is found in the search proceedings relating to any assessment year, then the scope of assessment will depend on whether the original assessment is pending or completed. Where the original assessment in any assessment year is pending on the date of search, then the proceedings relating to the pending asses .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... decision of the Hon'ble High Court of Karnataka in the case of Canara Housing Development Co. (supra) assumes significance. Interpreting the decision of the Hon'ble High Court of Delhi in the case of CIT V Anil Kumar Bhatra (supra), the Hon'ble High Court of Karnataka held as under : 18. A perusal of Section 153A shows that it starts with a non obstante clause relating to normal assessment procedure which is covered by Sections 139, 147, 148, 149, 151 and 153 in respect of searches made after 31.5.2003. These Sections, the applicability of which has been excluded, relate to returns, assessment and reassessment provisions. Prior to the introduction of these three Sections, there was Chapter XIV-B of the Act which took care of the assessment to be made in cases of search and seizure. Such an assessment was popularly known as block assessment because the Chapter provided for a single assessment to be made in respect of a period of a block of ten assessment years prior to the assessment year in which the search was made. In addition to these ten assessment years, the broken period up to the date on which the search was conducted was also included in what was .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... closed income would be brought to tax. 20. A question may arise as to how this is sought to be achieved where an assessment order had already been passed in respect of all or any of those six assessment years, either under Section 143(1)(a) or Section 143(3) of the Act. If such an order is already in existence, having obviously been passed prior to the initiation of the search/requisition, the Assessing Officer is empowered to reopen those proceedings and reassess the total income, taking note of the undisclosed income, if any, unearthed during the search. For this purpose, the fetters imposed upon the Assessing Officer by the strict procedure to assume jurisdiction to reopen the assessment under Sections 147 and 148, have been removed by the non obstante clause with which sub section (1) of Section 153A opens. The time-limit within which the notice under Section 148 can be issued, as provided in Section 149 has also been made inapplicable by the non obstante clause. Section 151 which requires sanction to be obtained by the Assessing Officer by issue of notice to reopen the assessment under Section 148 has also been excluded in a case covered by Section 153A. The time-limit p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t years referred to in the aforesaid sub-section on the date of initiation of the search under Section 132, the said proceeding shall abate. If such proceedings are already concluded by the assessing officer by initiation of proceedings under Section 153A, the legal effect is the assessment gets reopened. The block assessment roped in only the undisclosed income and the regular assessment proceedings were preserved, resulting in multiple assessments. Under Section 153A, however, the Assessing Officer has been given the power to assess or reassess the total income of the six assessment years in question in separate assessment orders. The Assessing Officer is empowered to reopen those proceedings and reassess the total income, taking note of the undisclosed income, if any, unearthed during the search. He has been entrusted with the duty of bringing to tax the total income of an assessee whose case is covered by Section 153A, by even making reassessments without any fetters. This means that there can be only one assessment order in respect of each of the six assessment years, in which both the disclosed and the undisclosed Income would be brought to tax. When once the proceedings ar .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d material can be furnished to the assessing authority and the assessing authority shall take note of the said income also in determining the total income of the assessee when the earlier proceedings are reopened and that income also shall become the subject matter of said proceedings. .... 6.3.9 Respectfully following the decision of the Hon'ble High Court of Karnataka in the case of Canara Housing Development Company (supra), we hold that once the assessment is reopened, the Assessing Officer can take note of the income disclosed in the earlier return, any undisclosed income found during the course of search and also any other income which is not disclosed in the earlier return of income or which is not unearthed in the course of search under section 132 of the Act, in order to find out and determine what is the total income' of each year and then pass the order of assessment. The grounds of appeal raised by the assessee at S.Nos. 2 to 5 are accordingly dismissed for all four assessment years 2005-06 to 2008-09. 5. In view of the above discussion, I am of the opinion that since there was a document found in the case of search action which belongs to the asse .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... iately before the issue of cheque of ₹ 5 lakhs; there is a similar credit in the bank account of the creditors, which remains un-clarified. According to the ld DR, the assessee failed to prove the genuineness of the transaction and hence the addition has to be confirmed. 10.2 On the other hand, the ld AR of the assessee submitted that the amount of ₹ 5 lakhs advanced to the assessee vide cheque No.2968863 on 22.2.2005. This amount of advanced by Mr. Johnson Abraham to the assessee after receiving back a loan, which he had advanced to Hotel Anjali Park, Kottayam. He also placed on record the proof, which is placed at 113 and 114 of the paper book. 11. I have carefully gone through the records and the submissions made by both the parties. I find that before the AO the assessee has not filed any details. The assessee first time produced the above documents before the CIT(A). Therefore, in my opinion, the issue should be remitted back to the file of the AO. Accordingly, this issue is remitted back to the AO with a direction to examine the details produced by the assessee before the CIT(A) and decide the issue afresh in accordance with law. 12. Next issue is with re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... accordance with law. 16. Next issue is with regard to the deletion of addition of ₹ 50,000/- advanced by Mr. Paulson P Varkey. 16.1 According to the ld DR, the assessee failed to prove the genuineness of the transaction and hence the addition has to be confirmed. 16.2 On the other hand, the ld AR of the assessee submitted that the amount of ₹ 50,000/- was advanced by Mr. Paulson P Varkey vide cheque no.97611 of SBI, Angamaly Branch on 19.8.2004, which was advanced by Mr. Paulson P Varkey after receiving an amount of ₹ 2.50 lakhs transferred from the SB account of his wife Mrs. Meena Paulson on 31.7.2004, a copy of which is placed on record at pages 128 to 130 of the paper book. 17. I have carefully gone through the records and the submissions made by both the parties. I find that before the AO the assessee has not filed any details. The assessee first time produced the above documents before the CIT(A). Therefore, in my opinion, the issue should be remitted back to the file of the AO. Accordingly, this issue is remitted back to the AO with a direction to examine the details produced by the assessee before the CIT(A) and decide the issue afresh in accor .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates