TMI Blog2016 (11) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of this Tribunal in the case of My Home Power Ltd vs. Dy.CIT [2012 (11) TMI 288 - ITAT HYDERABAD] wherein the Coordinate Bench of this Tribunal has held that it is not a revenue receipt but is a capital receipt. Thus, while holding that such receipt is not eligible for a deduction u/s 80IA, the Tribunal has also held that the addition cannot be made as it is a capital receipt. Therefore, assessment order is clearly erroneous in so far as allowing the deduction u/s 80IA is concerned. But since it is held to be a capital receipt and cannot be brought to tax, it is not prejudicial to the interest of the Revenue. Unaccounted income from the sale of remnant seed - Held that:- From the assessment order for the A.Y 2006-07, it is seen that the assessee has admitted a sum of ₹ 2,77,52,000 towards undisclosed cash payment in the return of income filed by it and the AO has made a further addition of ₹ 2,92,60,012 as unaccounted investment u/s 69 of the I.T Act. As seen from the table reproduced above from the CIT’s order u/s 263, the unaccounted income from remnant seed for the A.Y 2006-07 is ₹ 2,65,61,097, is included in the returned income of the assessee and fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs u/s 143(3) of the Act for A.Y 2006-07, the AO observed that the assessee has purchased land sites at Ibrahimbagh, Hyderabad, at Kandlakoya, Hyderabad and also at Sholinganallur, Chennai and that the assessee has made payments in cash also over and above the registered value of the lands. During the assessment proceedings, the assessee admitted that the cash payments for the purchase of the above lands are all out of its unaccounted income from sale of remnant seeds. The AO brought the difference of the undisclosed income utilized for the purchase of the lands to tax as undisclosed income of the assessee. As regards the investment of unaccounted income is concerned, the assessee offered the same in the A.Ys 2006-07 and 2007-08 as under: A.Y Unaccoun ted sale of remnant seed as per seized document Unaccounted investment in land at Chennai and Hyderabad as per seized document (Rs.) Income surrendered on account of investment in land at Chennai and Hyderabad as per return of income (Rs.) Chennai Hyderabad Chennai Hyderabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Chennai). The assessment order was accordingly rectified. 3. Subsequently, the CIT, u/s 263 of the Act, perused the assessment order and also the subsequent rectification order and observed that during the assessment proceedings u/s 143(3) of the Act, the AO has not considered that the assessee has also claimed profit from the sale of carbon credit as the deduction u/s 80IA of the Act, though the said profit is not derived from the industrial undertaking. He further observed that during the assessment proceedings for the A.Ys 2006-07 2007-08, the assessee has explained the source of unaccounted investments as the income from unaccounted sale of remnant seeds and though the assessee has offered a sum of ₹ 2,07,32,443 as income from unaccounted sale of remnant seeds for the A.Y 2007-08, since the assessee has not made any investment during the relevant A.Y, the entire amount ought to have been brought to tax. He also observed that from the seized material, the assessee has transferred a sum of ₹ 2.89 crores in cash through Angadias and by reducing the sum of ₹ 3,07,60,000 by the AO u/s 154 of the Act, the sum of ₹ 2.89 crores has escaped assessment. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition which was rightly rectified by the AO during the 154 proceedings. Therefore, according to the learned Counsel of the assessee, the revision order is not sustainable. The assessee has also taken a ground of appeal No.2 that the order passed u/s 263 is erroneous and illegal as the learned CIT has passed a single order revising both the order u/s 143(3) and order u/s 154 passed by the AO. According to him, the learned CIT ought to have considered the facts of each of the order separately and passed independent orders. 5. The learned DR, on the other hand, supported the orders of the authorities below on the maintainability of the combined order of the CIT and also on the merits of the said order. 6. Having regard to the rival contentions and the material on record, we find that the CIT has revised the order u/s 143(3) and also u/s 154 of the Act by a combined order u/s 263 of the Act. The objection of the assessee, that the CIT ought to have passed independent and separate orders, is not sustainable because the order u/s 154 is only a rectification of a mistake apparent from record of an order passed under the provisions of the I.T. Act and therefore, forms part of the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -07 itself, not making any adjustment to the unaccounted income from the sale of remnant seeds in the A.Y 2007-08 also, will result in double taxation. The assessee has also filed a copy of the assessment order for A.Y 2006-07 wherein at page 10 of the assessment order, the AO has observed that the unaccounted investments in land made by the assessee is quantified during the year 2005-06 relevant to the A.Y 2006-07, since the assessee company has paid the cash and got the land registered during this A.Y. From the assessment order for the A.Y 2006-07, it is seen that the assessee has admitted a sum of ₹ 2,77,52,000 towards undisclosed cash payment in the return of income filed by it and the AO has made a further addition of ₹ 2,92,60,012 as unaccounted investment u/s 69 of the I.T Act. As seen from the table reproduced above from the CIT s order u/s 263, the unaccounted income from remnant seed for the A.Y 2006-07 is ₹ 2,65,61,097, is included in the returned income of the assessee and further the addition of ₹ 2,07,32,443 is also made in the A.Y 2006-07. Therefore, if the same is brought to tax in the A.Y 2007-08 also because the assessee has offered it, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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