TaxTMI 
TaxTMI 
2015 (8) TMI 1030
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....search and seizure operation u/s 132 of the Act was conducted in case of society as well as the trustees on 10/09/09. Originally, assessee had filed return of income declaring total income of Rs. 25,58,349 including land lease rent of Rs. 15,30,000. The said return of income was processed u/s 143(1) on 21/06/09 accepting the income returned. Subsequently, in response to the notice issued u/s 153A of the Act, consequent upon search, assessee filed her return of income on 29/09/10 declaring total income of Rs. 12,57,850. During the assessment proceeding, AO while examining the original return as well as return filed in response to the notice issued u/s 153A of the Act, noticed that while in the original return assessee has shown land lease rent received from M/s Sree Educational Society at Rs. 15,30,000, however, in the return filed in response to the notice issued u/s 153A of the Act, assessee has shown land lease rent from M/s Sree Educational Society at Rs. 2,29,500. When AO called upon assessee to explain the difference, assessee stated that as per the lease deed modification agreement dated 29/08/06, society has increased monthly rent of Rs. 1,000 per acre to Rs. 3,750 per acre.....
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....d u/s 153A. As far as AY 2009-10 is concerned, it was submitted by assessee that for AY 2009-10, assessee in response to the notice issued u/s 153A has filed return of income showing lease rental income of Rs. 2,29,500. The TDS certificate issued by lessee mentions lease rental income of Rs. 2,29,500. Therefore, since assessee has not received excess rent at Rs. 13,00,500, AO was totally wrong in adding that amount to the lease rental income. 5. Ld. CIT(A) after considering the submissions of assessee in the context of facts and materials on record, observed that for AY 2008-09, assessee filed original return of income on 30/09/08 and search took place on 10/09/09. She also observed that return in response to the notice issued u/s 153A was filed on 29/09/10. Therefore, if at all there was a lease deed modification agreement between assessee and the society on 28/09/06, it would be logical and reasonable to accept that in the original return of income itself, assessee should have taken the lease rent as per the modified agreement. She further observed, society has also shown the amount of Rs. 15,30,000 as lease rent in its books of account and accordingly has also issued a TDS ce....
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....s 147 of the Act, hence, will not apply to the assessment proceeding u/s 153A. Ld. AR referring to the verification provided in the return of income as well as the scope of total income as provided in section 5 of IT Act, submitted that assessee is required to give true and correct position of his income for a particular AY. He submitted, since the amount of Rs. 15,30,000 is neither the rent receivable nor received in view of the modified agreement, the same cannot be brought to tax. He, further submitted, even the society noticing the mistake had reversed the excess rent paid in its books of account in the next FY. Thus, it was submitted by ld. AR, assessee having not received lease rental of Rs. 15,30,000, but, having actually received the amount of Rs. 2,29,500, it is entitled to revise the same in the return filed in response to the notice issued u/s 153A. As far as AY 2009-10 is concerned, ld. AR submitted, assessee in this AY has filed only one return of income in response to the notice issued u/s 153A by showing lease rental income of Rs. 2,29,500. TDS certificate issued by society also mentions lease rental income at Rs. 2,29,500. That being the case, AO cannot assess lease....
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....e the income already shown in the original return of income to a lesser figure. For this purpose, it is necessary to look into the provisions contained u/s 153A of the Act. On careful reading of the said provision, it is very much clear that the said provision empowers the AO to assess or reassess the total income in respect of six assessment years immediately preceding AY in which search action was initiated. Further, it is also evident that the powers conferred u/s 153A is exclusive and overriding power which over rides sections 139, 147, 148, 149, 151 and 153. It is very much pertinent to mention here that as per section 153A, AO has been given power to reassess the income relating to preceding six AYs. While exercising the power to reassess AO can assess income which has escaped assessment by result of omission or failure on the part of AO in the original assessment or income which has been unearthed as a result of search. Thus, it is clear from section 153A, it empowers the AO to even reassess a particular income without the strict conditions attached u/s 147. Considered in the aforesaid context, it is to be held that proceeding initiated u/s 153A of the Act is for the benefit....
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....in respect of all or any of those six assessment years, either under section 143(1)(a) or section 143(3) of the Act. If such an order is already in existence, having obviously been passed prior to the initiation of the search/requisition, the AO is empowered to reopen those proceedings and reassess the total income, taking note of the undisclosed income, if any, unearthed during the search. For this purpose, the fetters Imposed upon the AO by the strict procedure to assume jurisdiction to reopen the assessment under sections 147 and 148, have been removed by the non obstante clause with which sub-section (1) of section opens. The time limit within which the notice under section 148 can be issued, as provided In section 149 has also been made inapplicable by the non obstante clause. section 151 which requires sanction to be obtained by the AO by issue of notice to reopen the assessment under section 148 has also been excluded in a case covered by section l53A. The time-limit prescribed for completion of an assessment or reassessment by section 153 has also been done away with in a case covered by section 153A. With all the stops having been pulled out, the AO under section 153A has ....