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Commissioner of Income-Tax, Central-II, Mumbai Versus M/s Thakkar Popatlal Velji Sales Ltd.

2016 (4) TMI 336 - BOMBAY HIGH COURT

Scope of assessment u/s 153A - Addition on account of the undisclosed turnover - Held that:- We find that the issue raised herein is no longer open to debate as it is covered by the decision of this Court in the case of All Cargo Global Logistics Ltd. (2012 (7) TMI 222 - ITAT MUMBAI(SB)). It dealt with both pending assessment as well as completed assessment. In the above case, three years out of six assessment years were pending assessment for the purpose of Section 153A of the Act. Therefore, t .....

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t under section 153A of the Act is not to be restricted only to the incriminating material found during the course of search but would extend to other material also. Therefore in the facts of present case this issue is covered by the decision of this Court in All Cargo Global Logistics Ltd. (supra) in favour of the respondent-assessee inasmuch as it restricts the assessment to be made only to the incriminating material found during the course of search. The reliance upon the decision of the Supr .....

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Mr. Atul Jasani ORDER P. C. 1. This appeal under Section 260A of the Income Tax Act, 1961 (the 'Act') challenges the order dated 8th May, 2013 passed by the Income Tax Appellate Tribunal (the 'Tribunal'). The appeal relates to the Assessment Year 2006-07. 2. The revenue has framed the following question of law for our consideration: "Whether, on the facts and circumstances of the case and in law the Tribunal was justified in directing the A.O. to take the turnover of the Ass .....

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n certain loose papers found during search in respect of period 15th January, 2007 to 31st May, 2007. These papers recorded the transactions which were not reflected in the respondent-assessee's books of accounts. On the above basis the Assessing Officer by order dated 29th November, 2009 determined the total income of ₹ 2.47 crores. It is to be noted that there is office note annexed to the assessment order wherein the Assessing Officer has recorded the fact that he found certain regi .....

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) partly allowed the respondent-assessee's appeal holding that loose papers found during the search for the period 15th January, 2007 to 31st May, 2007 could not be relied upon by the Assessing Officer. However he directed the Assessing Officer to determine the aggregate unaccounted sales as recorded in the Register during the period August 2005 to September 2005 and apply the average sales per month obtained therefrom, over a period of 12 months relevant to the subject assessment year. 5. B .....

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e extended to the entire year. This is so by relying upon the Special Bench's decision of the Tribunal in the case of All Cargo Global Logistics Ltd. vs. DCIT (2012) 137 ITD 287 (Mumbai)(SB). 6. Pending consideration of the present appeal, the Revenue's appeal to this Court from the decision of the Special Bench in All Cargo Global Logistics Ltd. (supra) being Income Tax Appeal No.1969 of 2013 came up for consideration on 21st April, 2015. This appeal of the Revenue raised the following .....

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ct in law in holding that the scope of Section 153A is limited to assessing only search related income, thereby denying Revenue the opportunity of taxing other escaped income, that comes to the notice of the AO ? (iii) Whether on the facts and in the circumstances of the case, the ITAT was right in limiting the scope of Section 153A only to undisclosed income when as per the section the AO has to assess the total income of the six assessment years ? (iv) Whether on the facts and in the circumsta .....

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s under : (a) That the decision of this Court in All Cargo Global Logistics Ltd. (supra) was dealing with completed assessment as is evident from question no.1 formulated therein. In contrast the assessments in this case were pending on the date of the search as no notice under Section 143(2) of the Act was issued to the respondent-assessee although intimation under Section 143(1) of the Act had been issued. (b) So far as the registers evidencing sales found for the period August 2005 to Septemb .....

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Bhadruka Vs. DCIT (2012) 346 ITR Page 106. 8. We find that the issue raised herein is no longer open to debate as it is covered by the decision of this Court in the case of All Cargo Global Logistics Ltd. (supra). It dealt with both pending assessment as well as completed assessment. In the above case, three years out of six assessment years were pending assessment for the purpose of Section 153A of the Act. Therefore, the decision of this Court in All Cargo Global Logistics Ltd. (supra) would .....

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