TMI Blog2023 (1) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... ., the tenancy right was held by M/s Empire Continental Exports P Ltd, a company owned by Shri Ajani. The said company has been acquired by the son and wife of the assessee on 18-09-2003. Accordingly, it was submitted that the tenancy right would form part of the company and hence there was no requirement to make separate payment for it. On a safer course, it was argued that the transaction, if at all is taxable, would be liable to be taxed in AY 2004-05 and not in AY 2005-06. The assessee, in whose hands, it is taxable is also a question at large. In the absence of providing opportunity to cross examine Mr Nuruddin Ajani, there is violation Principles of natural justice. Before us, the revenue has expressed its inability to produce t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note appears to have been written by Mr. Nuruddin B. Ajani. It is mentioned therein that he has taken Rs. 60 lakhs from the assessee herein against sale of his office premises to the assessee. It is stated that the office was sold for a sum of Rs. 56 lakhs and hence balance of Rs. 4 lakhs was promised to be paid by 31st April and the possession will be given on 21st March. Based on this note, the assessment of the assessee was reopened under section 147 of the Act on the reasoning that the assessee has made undisclosed investment of Rs. 60 lakhs in purchasing the office at Byculla. The Assessing Officer completed the assessment of making addition of Rs. 60 lakhs. The learned CIT(A) in the first round deleted the addition and hence the reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out u/s 132 on 06/07/2004 at the premises of the Ajani Group. The opportunity of cross examine Nuruddin B Ajani was not given to understand the content of note vis-a-vis alleged payment made by Nazmin Jamal for the tenancy right for the office at Byculla to Nuruddin B. Ajani. Byculla office was located at 4th floor, Warden Building 340, Byculla. The office is owned by Sir Jacob Sassoon High School 340 Sir JJ Road, Byculla. Empire Continental Exports Private Limited was having the tenancy night of the said office. All the equity shares of Empire Continental Exports Private Limited was owned and held by Ajanis. By virtue of having 100% shareholding of Empire Continental Exports Private Limited, Ajanis were in possession of the offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jamal the said tenancy right indirectly transferred to family members of Nazmin Jamal. Assuming without admitting, if at all it is said that the amount is paid for transfer of tenancy right in the office, it would have been paid on or before 18/09/2003. This also can be substantiated by the note dated 04/04/2004 wherein it is stated by Naruddin Ajanis I have taken 60,00,000 against the office from Nazmun Jamal. We sold office to him for 56,00,000 balance 4,00,000 1 had promised that I would pay him by 31 April. Please refer page no.2 of Hon. ITAT Order on page no.2. This is written in the note dated 04/04/2004. He said he has already received 60,00,000 for sale of premises i.e, tenancy right in office located 4th floor, Warden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id by the assessee. However, we assuming without admitting here by state that the amount if any alleged to be paid for transferred of tenancy rights in the said office, it is paid in FY.2003-2004. We are enclosing herewith a copy of letter dated 21 July, 1998 given by Sir. Jacob Sasson High School certifying that Empire Continental Exports Private Limited is respectable tenants occupying the office at 4 Floor. Warden Building, 340 Byculla. 7. We notice that the assessing officer has not allowed the opportunity of cross examining Shri Nuruddin Ajani. Further, the Ld A.R stated that the revenue has not made any addition in the hands of Shri Nuruddin Ajani. The above submissions made by the assessee would show that the impugned re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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