TaxTMI 
TaxTMI 
2016 (10) TMI 174
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....and was prepared to admit the same for the A.Ys. 2009-2010 to 2011-2012. Consequent thereto, a notice under section 153A was issued on 22.02.2011 and the assessee admitted income of Rs. 5,33,46,941 in addition to the agricultural income. On verification, the Assessing Officer observed that in addition to the income already declared, assessee admitted income of Rs. 4,82,58,604 whereas, now he admitted an income of Rs. 4,58,00,641 which results in a short fall of Rs. 24,57,963. According to the Assessing Officer, the income declared is not matching with the income originally admitted during the course of search proceedings and accordingly, the short fall was added and assessment was completed accordingly. 3. Aggrieved by the above addition, assessee contended before the CIT(A) that the return of income was originally filed wherein the assessee had not set-off the interest received against the interest paid under the Head "Income from Other Sources" whereas, during the course of proceedings under section 153A the assessee claims set-off which is permissible under law. It was also explained that in fact, the assessee included the entire sum of Rs. 4,82,58,604 as additional income in t....
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....turn cannot be claimed in the return furnished in response to notice issued under section 153A of the I.T. Act, 1961. 4. The Ld. CIT(A) erred in concluding that, the purpose of issuing notice u/s. 153A of the Income Tax Act, 1961 and making assessment under that section is to bring tax additional income, thus provision is for the benefit of the revenue not for that of assessee. 5. The Ld. CIT(A) should not have concluded that, notice under section 153A is for the benefit of the Revenue and not for the appellant. The appellant claim of set off of interest income earned against interest paid should have been allowed. 6. The Ld. CIT(A) should have allowed the interest paid amount of Rs. 24,57,965 to set off against the interest income earned by the appellant under the head "Income from other sources". 7. The appellant craves leave to add/alter/modify grounds which would be necessary for adjudication of the case." 6. It may be noticed that both the assessee as well as the Revenue filed paper books and case law. Learned Counsel for the assessee, adverted our attention to page 25 and 33 of the paper book to submit that all the details concerning loan taken and the interest ....
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....e relevant material on record. It is observed from the copy of return filed by the assessee for assessment year 2001-02 on 31-10-2001 that loss of Rs. 27,26,360/- under the head "Profits & gains of business or profession" was declared. The said return for the year was duly filed within the time allowed u/s.139(1). We are currently dealing with assessment year 2002-03 in which the assessee has claimed set off of the brought forward business loss against the income for the current year. In our considered opinion, the authorities below were not justified in not granting the set off of the brought forward business loss for the reason that the requirement to file return within the time prescribed u/s.139(1) is for carrying forward the loss. Once loss is determined in the return file u/s.139(3), the assessee becomes eligible for set off against the income of the subsequent years irrespective of the fact whether the returns of such later years are filed u/s.139(1) or not. Sec. 80 read with sec. 139(3) requires the submission of return for loss before the due date. There is no such requirement that the subsequent years, in which the set off is claimed, must also fulfil the requirement of f....
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....e the said claim not connected with the assessment of escaped income. Infact, the judgment of the Hon'ble Supreme Court in the case of Sun Engineering Works Pvt. Ltd. (supra) is not an authority to say that assessee cannot raise a claim pertaining to an issue which is connected to the assessment of escaped income. In-fact, if a claim which is connected to the escaped income is set-up before the Assessing Officer in the course of re-assessment proceedings, the same is liable to be considered and the judgment of the Hon'ble Supreme Court in the case of Sun Engineering Works Pvt. Ltd. (supra) only precludes such new claims by the assessee which are unconnected with the assessment of escaped income. In the present case, we are dealing with an assessment u/s 153A of the Act and the scope of such an assessment has already been examined by us in the context of the relevant specific provisions, which do not leave any scope for ambiguity. The judgment of the Hon'ble Supreme Court in the case of Sun Engineering Works Pvt. Ltd. (supra) has been rendered on a different footing and is strictly not applicable to the present proceedings. So, however, even if one were to import the reasoning raise....
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....losed income un-earthed during the search. The facts therein were that during the course of search, the loan was not reflected in the return of income filed by the assessee and there was no document or corroborative material concerning the said land. The claim of the assessee was that on the date of initiation of the search, no assessment was pending as they had abated and the Assessing Officer was wrong in invoking the provisions of section 153A of the Act. Under these circumstances, the Court observed that returns of income filed by the assessee for all the six assessment years under consideration before the search took place were processed under section 143(1)(a) of the Act and the provisions of section 153A can be invoked. In this regard, the Court observed that the time limit within which a notice under section 148 can be issued is not applicable here and in fact, such time limit was prescribed under section 153 has been done away with in cases covered by section 153A of the Act. Section 153A has been entrusted with the date of bringing to tax the total income of the assessee whose case is covered by section 153A, by even making re-assessment without any fetters. 10.1. The Ld....