TaxTMI 
TaxTMI 
2011 (9) TMI 804
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.... filed by the Revenue against the order of the learned CIT(Appeals)-I, Chennai in ITA No. 170/Mds/2006-07 dated 07-01-2008 for the assessment year 2001-02. C.O. No. 106/Mds/2009 is cross objection filed by the assessee in the Revenue's appeal in ITA No. 893/Mds/2008. ITA No. 894/Mds/2008 is an appeal filed by the Revenue against the order of the learned CIT(Appeals)-I, Chennai in ITA No. 171/Mds/2006-07 dated 07-01-2008 for the assessment year 2002-03. C.O. No. 107/Mds/2009 is cross objection filed by the assessee in the Revenue's appeal in ITA No. 894/Mds/2008. ITA No. 895/Mds/2008 is an appeal filed by the Revenue against the order of the learned CIT(Appeals)-I, Chennai in ITA No. 172/Mds/2006-07 dated 07-01-2008 for the assessment year 2003-04. ITA No. 718/Mds/2008 is an appeal filed by the assessee against the order of the learned CIT(Appeals)-I, Chennai in appeal No. 172/2006-07 dated 07-01-2008 for the assessment year 2003-04. ITA No. 896/Mds/2008 is an appeal filed by the Revenue against the order of the learned CIT(Appeals)-I, Chennai in ITA No. 173/Mds/2006-07 dated 07-01-2008 for the assessment year 2004-05. ITA No. 719/Mds/2008 is an appeal filed by the assessee against ....
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....rial found in the course of the search in the case of Shri T.R. Pachamuthu, the assessments in the cases of both Shri P. Ravi and the assessee herein Shri P. Sathyanarayanan had been completed. It was the submission that notice under section 153C read with section 153A of the Act was issued on 10-03-2006. The assessee had filed his return of income in response to the said notice u/s 153C read with section 153A on 31-07-2006 and the assessments were completed on 29-12-2006. It was the submission that the provisions of section 153C were similar to the provisions of sec. 158BD insofar as where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized belonged to a person other than the person referred to in section153A, then such books of accounts.....shall be handed over to the Assessing Officer having jurisdiction over such other person and that the Assessing Officer shall proceed against each such other. It was the submission that in the present case the satisfaction had not been recorded in the case of Shri T.R. Pachamuthu, being the person searched. It was the submission that no satisfiaction h....
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....me for the said within 30 days of receipt of the said notices. Sd/- 10/3/06 KURUVILLA M GEORGE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-I(3), CHENNAI-34. In response to 153C notice return filed on 31/7/06. Notice u/s 143(2), 142(1) and questionnaire signed. Sd/- 9/X/06 Reply filed by a's AR dt 27/11/06 is filed. Shri G. Vasudevan FCA appears. ........." It was the submission that the Assessing Officer has recorded his satisfaction. It was the further submission that this issue had been considered in the case of the assessee's brother, Shri P. Ravi and the issue had been held in favour of the Revenue in para 6b and para 21 of the order of the co-ordinate Bench of this Tribunal in ITA No. 1513/Mds/2007 dated 7-08-2009. It was the submission that as mentioned in the grounds of the assessee the ground though raised before the learned CIT(A) had not been adjudicated by the learned CIT(A) and as the issue had not been adjudicated by the learned CIT(A), the same could not be considered as a ground before the Tribunal. The learned DR relied upon the decision of the jurisdictional High Court in the case of CIT v. Covanta Samalpatti O....
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....and adjudicated upon by us. 8. A perusal of the order sheet recording itself, as placed before us by the Revenue which has been extracted above, clearly shows that the Assessing Officer when he made the recording was categorical in his view that the reasons recorded is no pre-condition for action under section 153C of the Act and the points noted above are for the sake of ready reference and appropriate action. Once the Assessing Officer himself has accepted that the recording of reasons is not a pre-condition for action u/s 153C and has accepted that the points are noted for the sake of ready reference and appropriate action, obviously cannot be treated as reasons recorded. A reading of the provisions of section 153C of the Act clearly shows that it is in pari materia with the provisions of section 158BD of the Act. While interpreting the provisions of section 158BD in the case of Manish Maheshwari, more specifically the satisfaction of the Assessing Officer, the Hon'ble Supreme Court has categorically held that the satisfaction is to be recorded. Admittedly, the Assessing Officer in the present case is the same as that of Shri T. R. Pachamuthu also. The Revenue has not been ab....
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....gs, (ii) on account of the difference between the Balance Sheet filed along with the return and the Balance Sheet found in the course of the search and (iii) on account of the net professional receipts which has been disclosed by the assessee but for which no return had been filed earlier. It was the submission by the learned D.R. that taking into consideration the standard of living of the assessee and his status in the society a conservative estimation had been done and the differential brought to tax. It was the submission that the assessee had also claimed agricultural income which was also disbelieved by the Assessing Officer. It was the submission that the learned CIT(A) had deleted the addition made on account of inadequacy of drawings by accepting the contention of the assessee that the assessee was staying in a joint family and consequently the drawings of all the family members were to be considered. In regard to the issue of agricultural income it was the submission that the learned CIT(A) had granted the assessee relief of Rs. 25,000/-. On both the issues the learned DR vehemently supported the order of the Assessing Officer. 10. In reply, the learned authorised repr....
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....ets were the true and correct Balance Sheets. It was the submission that the Balance Sheets filed along with the returns were defective insofar as many of the investments which were found in the Balance Sheets which were found in the course of search were absent in the Balance Sheets filed along with the Returns. It was the submission that it was this difference that the Assessing Officer had brought to tax and nothing more. It was the submission that the presumption "though" is a rebuttable presumption. The presumption can be rebutted only by showing documentary evidence and not by plain word of mouth. It was the submission that the assessee having not disproved the veracity of the Balance Sheet found in the course of search, the same was liable to be accepted as true and correct and the additions made on that count sustained. It was the submission that the learned CIT(A) had deleted the addition on this count by holding that the investments shown in the Balance Sheet seized were investments shown at market value and the investments shown in the Balance Sheet filed along with the Return showed the investments at cost. It was the submission that the learned CIT(A) had also taken in....
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....e learned DR that the Assessing Officer was well within his jurisdiction and powers to condone the delay in filing the return and take into consideration the return filed. It was the further submission that even assuming that the return is invalid on account of the delay, still the same can be considered as information for the purpose of assessment. It was the submission that in any case the Revenue was interested in assessing the income of the assessee on the basis of the Balance Sheet found in the course of search which is deemed to be true and correct in view of the presumption provided in section 132(4A) read with section 292C of the Act. After considering the submissions of the learned DR we are in full agreement with him that in view of the provisions of section 132(4A) read with section 292C of the Act, the Balance Sheets which have been found in the course of search being in the possession and control of the assessee who was staying in the joint family, the contents of such Balance Sheet are liable to be accepted as true and we hold so. However, we are unable to agree with the learned DR that the Assessing Officer has any authority or power to condone the delay in filing th....