Reassessment under s.148A held valid; s.69 additions totaling Rs.7,00,000 deleted after acceptable contemporaneous explanations for property investmen...
Adjudication set aside; Rule 9 valuation based on internet engineer report quashed for Rule 3(4) non-compliance; Section 138B cross-examination requir...
The HC affirmed the ITAT's allowance of the assessee's appeal, holding that reassessment framed under s.153A could not be sustained. The tribunal correctly determined that documents retrieved on search-board resolutions, legal notes, valuation reports, deeds of retirement, reconstitution indentures and retirement-cum-release instruments-were business records and not incriminating material. There was no evidence of concealment, nor did the conversion of the partnership to a company constitute a capital asset "transfer" as contemplated by s.2(47). Consequently, consequential reassessment proceedings lacked jurisdictional and substantive basis and were quashed, with the assessment restored in favour of the assessee.
The HC affirmed the ITAT's allowance of the assessee's appeal, holding that reassessment framed under s.153A could not be sustained. The tribunal correctly determined that documents retrieved on search-board resolutions, legal notes, valuation reports, deeds of retirement, reconstitution indentures and retirement-cum-release instruments-were business records and not incriminating material. There was no evidence of concealment, nor did the conversion of the partnership to a company constitute a capital asset "transfer" as contemplated by s.2(47). Consequently, consequential reassessment proceedings lacked jurisdictional and substantive basis and were quashed, with the assessment restored in favour of the assessee.
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