TMI Blog2016 (9) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... R For The Assessee : Sh. Rakesh Gupta, Adv., Sh. Somil Aggarwal, Adv. For The Department : M s. Deepika Mittal, CIT(DR) ORDER PER H.S. SIDHU : JM This Appeal is filed by the Assessee against the Order dated 24.12.2013 of the Ld. CIT(A)-XXXIII, New Delhi relevant to assessment year 2006-07 on the following grounds:- I. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in making disallowance of a sum of ₹ 8,51,OOO/- under provisions of the section 40A(3) of Income Tax Act, 1961. 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R of the assessee attended the hearing and filed the details. The stated main objects of the assessee company are purchase, sale, exchange, lease, mortgage, hire, lands or immovable or movable property and real estate promotion. During the FY 2005-06, the assessee company has made purchases of land aggregating to ₹ 4,36,99,087/- from various persons. Out of the said payment, an amount of ₹ 42,55,000/- has been paid to various persons in cash. Since, the payments in cash have been made in excess of the limit prescribed u/s. 40A(3) of the Income Tax Act, the explanation of the assessee was sought and the in response to the same, assessee filed the written explanation on 10.1.2013. After considering the same, AO observed that since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch are bad in law being beyond the scope of jurisdiction u/s. 153A of the I.T. Act. In support of his contention, he filed a Paper Book containing pages 1 to 31 having the copy of assessment order in the case of M/s Nilay Infrastructure Pvt. Ltd. for the assessment year 2007-08 dated 29.1.2013; copy of the Ld. CIT(A) order in the case of M/s Nilay Infrastructure Pvt. Ltde. for the assessment year 2007-08 dated 28.6.2013 and copy of ITAT order in the case of M/s Nilay Infrastructure Pvt. Ltd. in ITA No. 5297/2013 for the AY 2007-08 dated 10.6.2013 by which the issue in dispute is squarely covered. 6. At the time of hearing, Ld. DR relied upon the order of the authorities below and stated that the provision of section 153A has rightly bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a (2016) 380 ITR 573 (Del.) wherein the Hon ble High Court of Delhi has held has under:- 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned ITA Nos. 707, 709 and 713 of 2014 of decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily issued to the person searched requiring him to file returns for six Ays immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07.On the date of the search the said assessments already stood completed. Since no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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