TaxTMI 
TaxTMI 
2011 (1) TMI 900
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....Assessing Officer on account of excess payment to labourers as incentive/speed money amounting to Rs. 33,20,886, by relying on the decision of the Hon'ble Karnataka High Court in the case of CIT v. Konkan Marine Agencies 313 ITR 308, even though the assessee had failed to prove that the entire payment was made out of business expediency". 3. The Revenue had instituted this appeal and raised the above mentioned issue in pursuance of the original assessment order passed under section 143(3) of the Act for the assessment year 2005-06 dated 12-12-2007 and the subsequent order of the CIT(A) in ITA No. 76/MNG/CIT(A) MNG/2007-08, dated 19-10-2009. After hearing both the parties, the Tribunal held the issue in favour of the assessee by confirmin....
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....ecd) by LR's v. CIT [1962] 44 ITR 405 (SC) (ii) V. Jagmohan Rao v. CIT/CEPT [1969] 75 ITR 373 (SC) (iii) CIT v. Sun Engineering Works (P.) Ltd. [1992] 198 ITR 297/64 Taxman 442 (SC) (iv) Jyotsna Suri v. ITAT [2003] 128 Taxman 33 (SC) (v) Honda Siel Power Products Ltd. v. CIT [2007] 295 ITR 466/165 Taxman 307 (SC) (vi) Asstt. CIT v. Saurashtra Kutch Stock Exchange Ltd. [2008] 305 ITR 227/173 Taxman 322 (SC). Further, the ld. Standing Counsel cited the decision rendered by the Hon'ble Apex Court in the case of Sree Ayyanar Spg. & Wvg. Mills Ltd. v. CIT [2008] 301 ITR 434/171 Taxman 498 and drew our attention to the following portion of the order (paper book pa....
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....g anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, ....
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....3B and section 153C, all other provisions of this Act shall apply to the assessment made under this section; (ii) in an assessment or reassessment made in respect of an assessment year under this section, the tax shall be chargeable at the rate or rates as applicable to such assessment year." The second proviso highlighted above clearly specifies that only the assessment or reassessment pending relating to the specific period of six years as the case may be shall abate. The Act is silent with respect to appellate proceedings. Therefore, the question of abatement does not arise with respect to appellate proceedings. In this case, the original assessment order under section 143(3) was passed on 12-12-2007 and the assessment ....
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....ide as how the appellate proceedings are to be dealt with in such circumstance. This mischief of the Act can be remedied only by the Hon'ble higher Judiciary or by amending the Act. We do not have the powers under the Act to efface any order passed by us as prayed by the ld. Standing Counsel. More over, the essence of Miscellaneous Petition is that we do not have the jurisdiction to decide the appeal (ITA No. 1209/09), since the subject-matter of the appeal was already considered in the assessment completed under section 153A pursuant to search under section 132. The relevant ground (Nos. 3 & 4) in the M.P. read as under: "3. The adjudication by the Appellate Authorities of the order passed under section 143(3) dated 12-12-2007 in view o....