TaxTMI 
TaxTMI 
2016 (5) TMI 1307
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....3A of the Act was issued and the assessment uls.153A r.w.s. 143(3) of the Act was completed on 30.12.2011 after making additions/disallowances on account of depreciation, disallowance on account of loss on sale of assets, addition on account of share application money u/s.68 of the Act of and addition on account of cash credit (loans) u/s.68 of the Act etc. 3. Before the CIT(A) assessee raised issue of validity of the assessment order passed by the Assessing Officer uls.153A r.w.s. 143(3) of the Act and Ground No.2 pertains to the, issue of violation of principles of natural justice. In the written submissions filed during the appellate proceedings, it was submitted that, to assess income u/s.153A of the Act, A.O retains the original jurisdiction as well as jurisdiction conferred on him uls.153A of the Act to assess income in respect of such six years provided these assessments are abated and in respect of other cases i.e. cases where the assessments are not abated, A.O can make assessment u/s.153A of the Act on the basis of material found during the course of search but not produced in the course of assessment proceedings or in cases any undisclosed income/property is discovere....
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....essment roped only the undisclosed income and the regular assessment proceedings were preserved, resulting in multiple assessments. Under Section 153A, however, the Assessing Officer has been given the power to assess or reassess the 'total income' of the six assessment years in question in separate assessment orders. This means that there can be only one assessment order in respect of each of the six assessment years, in which both the disclosed and the undisclosed income would be brought to tax. 20. A question may arise as to how this is sought to be achieved where an assessment order had already been passed 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 Assessing Officer 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 Assessing Officer by the strict procedure to assume jurisdiction to reopen the assessment under Sections 147 ....
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....sessee which would include both the income declared in the returns, if any, furnished by the assessee as well as the undisclosed income, if any, unearthed during the search or requisition. The position thus emerging is that where assessment or reassessment proceedings are pending completion when the search is initiated or requisition is made, they will abate making way for the Assessing Officer to determine the total income of the assessee in which the undisclosed income would also be included, but in cases where the assessment or reassessment proceedings have already been completed and assessment orders have been passed determining the assessee's total income and such orders are subsisting at the time when the search or the requisition is made, there is no question of any abatement since no proceedings are pending. In this latter situation, the Assessing Officer will reopen the assessments or reassessments already made (without having the need to follow the strict provisions or complying with the strict conditions of Sections 147, 148 and 151 and determine the total income of the assessee. Such determination in the orders passed under Section 153A would be similar to the order....
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.... Following grounds of appeal are without prejudice to each other: 1. The learned CIT(A) has erred in law and in facts in confirming the additions made by the Assessing Officer in the assessment order passed u/s. 153A r.w.s. 143(3) of the Act which are illegal and bad in law. 2. The order passed by the learned CIT(A) is in violation of principles of natural justice and is passed without giving a proper opportunity of hearing to the appellant. 3. The learned CIT(A) has erred in law and in facts in passing the order which is illegal and bad in law. The order passed by the learned CIT(A) purportedly on 04.01.2013 after the conclusion of hearing on 11.12.2012, which has been served on 09.03.2013 is illegal. 4. The learned CIT(A) has erred in law and in facts in not holding that the assessment order was passed in violation of principles of natural justice and was passed without giving proper opportunity of hearing to the appellant. In ground No.5, 6 & 7 the assessee had challenged validity of additions made with respect to share capital, unsecured loans etc. Grounds raised in ITA No.2199/Mum/2013(AY : 2005-2006) :- Grounds of....
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....the credit for taxes paid by/deducted for the appellant while computing the tax liability of the appellant. 9. The learned CIT(A) has erred' in law and in facts in confirming the interest levied by the Assessing Officer u/s. 234A, 234B and 234C of the Act. Grounds raised in ITA No.2202/Mum/2013(AY : 2006-2007) :- Grounds of appeal against the order dated 04.01.2013 passed by the learned Commissioner of Income-tax(Appeals) 38, Mumbai Following grounds of appeal are without prejudice to each other: 1. The learned CIT(A) has erred in law and in facts in confirming the additions made by the Assessing Officer in the assessment order passed u/s. 153A r.w.s. 143(3) of the Act which are illegal and bad in law. 2. The order passed by the learned CIT(A) is in violation of principles of natural justice and is passed without giving a proper opportunity of hearing to the appellant. 3. The learned CIT(A) has erred in law and in facts in passing the order which is illegal and bad in law. The order passed by the learned CIT(A) purportedly on 04.01.2013 after the conclusion of hearing on 11.12.2012, which has been served on 09.03.20....
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....nt years 2004-05 & 2005-06, the AO has no jurisdiction to make addition u/s.153A r.w.s.143(3), insofar as no incriminating material was found during the course of search and the assessments have been completed and the time limit for issue of notice u/s.143(2) have already been expired. In respect of assessment year 2004-05, as per ld. AR return was filed on 31-10-2004. With the return of Income the assessee had enclosed its Audited Balance Sheet and Profit & Loss Account along with Audit Reports, Computation of Total Income and other details. The return had been processed u/s.143(1) but no scrutiny assessment notice u/s. 143(2) was issued. For AY 2004-05, notice u/s. 143(2) of the Act was to be issued before expiry of 12 months from the end of the month in which the return is furnished. Accordingly, in this case AO should have issued notice by 31-10-2005, but no such notice was issued. Thereby the assessment was treated to be completed since on the date of search i.e. on 31-10-2009, limit for issuing notice u/s.143(2) was already expired much before date of search. 8. In respect of assessment year 2005-06, return was filed on 29-102005 which has been processed u/s. 143(1) but....
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....und during search. Held, yes. Reliance was also placed on the latest decision of the Delhi Bench of the Tribunal in the case of Jakson Enterprises vs. ACIT dated 27-05-2015 being ITA No. 383/Del/2013, wherein decision of Delhi HC in the case of CIT vs. Anil Kumar Bhatia as relied on by CIT(A) in the instant case before us have been discussed. Reliance was also placed on the following decisions :- i) ITAT Mumbai Bench in the case of Shri Gurinder Singh Bawa vs. DCIT - 28 taxmann.com 328 ii) ITAT Mumbai Bench in the case of Anil P. Khimani vs. DCIT - No. 2855 to 2860/Mum/2008 dated 23-02-2010 iii) ITAT Jodhpur Bench in the case of Vishal Dembla vs. DCIT - 157 TTJ 189 iv) High Court of Bombay on the case of CIT v. Murli Agro Products Ltd. [2014] 49 Taxmann.com 172 v) ITAT Mumbai Bench in case of ACIT v. Jayendra P. Jhaveri [2014] 65 SOT 118 vi) Jodhpur ITAT in the case of Ayushi Builders & Developers vs. DCIT [2014] 166 TTJ 25 vii) ITAT Pune Bench in case of ACIT vs. SRJ Peety Steels P. Ltd. [2011] 137 TTJ 627 viii) Mumbai Tribunal in the case of Nikki Agarwal vs. ACIT dated 22-01-2014 being ITA No. 879/M/2011 [20 14-TIOL-75-ITAT-MUM] ix) Mumbai Tribunal ....
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....nt companies for Assessment Year. As per ld. AR the AO has also asked to produce the director or authorised person of the said share applicant companies. Thereafter in the same para, in sub-points 1.2 to 1.15 AO has discussed share application money received from each share applicant and given his finding in respect of bank account entries of each of the share applicant. According to the finding of the AO, share applicant companies at the time of making payment to the assessee have received cheques from various companies. The AO has examined the bank account of those other companies and found that they have received cheque from some other companies and on examination of forth level companies they have found that cash was deposited in their account. The AO also recorded that in few cases those companies are having account with Progressive Co. Op. Bank wherein Mumbai address was mentioned but the Inspector did not find any such company at such address. It was further contended by ld. AR that during the course of assessment proceeding, assessee has submitted following documents to prove identity of the parties, Genuineness of transaction and creditworthiness of such parties vide it....
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....ce with the law. He further submitted that the AO has not issued any notice u/s. 133(6) or summons u/s. 131 to share applicant companies to substantiate his findings in respect of bank account discrepancy at third and forth level before drawing conclusion on hypothetic basis regarding chain of payment and should have also established that cash deposited in bank account of companies falling at third or fourth level is actually assessee's own money. As per ld. AR the AO had merely relied on the information received from Investigation wing without confronting to the assessee on the information so received. 10. Our attention was also invited to para 9 of AO's order wherein he observed that during the course of search and post search enquiries, it has been established that the assessee has received huge share application money with heavy premium from various companies. However, as per ld. AR during the search no incriminating material was found regarding share application money received from the various shareholders. The same can be verified from the statement recorded u/s. 132(4) of the Act dated 31-10-2009 and 20-11-2009]. By inviting our attention to the statement recorded u/s....
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....e order of the CIT(A) deleting the impugned addition holding that the assessee has been able to prove the identity of the share applicants and the share application money has been received by way of account payee cheques-No question of law arises. Further reliance was placed on the decision of Hon'ble Patna High Court in the case of Sarogi Credit Corporation, 103 ITR 344, decision of Hon. Gujarat High Court in the case of DCIT v. Rohini Builders - 256 ITR 360, decision of Hon'ble Rajasthan High Court in the case of Aravali Trading Co., 220 CTR 622, decision of Hon. High Court of Gauhati in the case of Nemi Chand Kothari vs. CIT [2004] 264 ITR 254. 12. In support of the proposition reliance was placed on the decision of Hon. Delhi High court in the case of CIT - Divine Lasing & Finance Ltd. 299 ITR 268 (Delhi High Court], wherein it is held as under: The tribunal has further found that the AO has not brought any positive material or evidence which would indicate that the shareholders were benamidars or fictitious persons or that any part of the share capital represented company's own income from undisclosed sources. As regards receipt of share capital on issue of ....
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....her AO can solely rely on the enquiries of investigation wing to treat the share application money as in genuine and make additions- Whether AO is bound to bring positive evidence on record to establish that the money received in the shape of share application money was actually assessee's own money particularly when the assessee has complied with all the ingredients of section 68 of the Act. CIT v. Daulat Ram Rawatmull [1973] 87 ITR 349 wherein it is held as under: The onus to prove that the apparent is not the real is on the party who claims it to be so. As it was the department which claimed that the amount of fixed deposit receipt belonged to the respondent firm even though the receipt had been issued in the name of B, the burden laid on the department to prove that the respondent was the owner of the amount despite the fact that the receipt was in the name of B. So far as the source was concerned, there was no material on the record to show that the amount came from the coffers of the respondent-firm or that it was tendered in B Calcutta branch of the Central Bank, on behalf of the respondent. As regards the destination of the amount, there was nothing to show ....
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....d any valid material or evidence to discredit the evidences and the explanation given by the assessee company. The only evidence which has been referred by the AO is statement of third parties recorded by the Investigation Wing. Admittedly these statements were not recorded by the AO but were recorded by the Investigation Wing at the back of the assessee. The AO has not even referred to the relevant portion of such statement so as to establish the collusive arrangement the assessee company had with these persons. 17. Accordingly we are of the tneui that the CIT(A) was justified deleting the addition made by the AO. 18. In the result, the appeal of the revenue stands dismissed. " (iii) Latest decision of Hon. Mumbai Tribunal in the case of Krishna Sheet Processors Pvt. Ltd dated 30-06-2015 being ITA No. 546/Mum/2013 and ITA No.7465/Mum/2012, it is held as under: ITA No. 546/Mum/2013 "6.2. We have carefully perused the bank statement brought before us which are placed in the paper book. We do not find any strength in the allegation made by the AO. Allegations are baseless and without any supportive evidence. On the contrary, these two comp....
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....n the basis of information received from Directorate of Income-tax (Investigation) without recording Assessing Officer's own satisfaction - Addition was made by the Assessing Officer on account of bogus share application money under the provisions of Section 68 of the Act - the Assessing Officer failed to appreciate that there is no documentary evidence against the assessee-company to support such impugned additions - the assessee-company has fully discharged the burden of proof, onus of proof and explained the source of share capital and advances received by established the identity) creditworthiness and genuineness of transaction by banking instruments with documentary evidences - assessee company substantiated the details with the documentary evidences as extracted from the website of Ministry of Corporate Affairs) Government of India before the Assessing Officer. These facts have not been rebutted on behalf of the Revenue. (v) Decision of Hon. Delhi Tribunal m the case of ITO vs. Shakti Securities Pvt. Ltd. in ITA No. 3475/Del/2009 dated 10-09- 2015 [2015-TIOL-1634-ITAT-DEL] it is held as under: "A) ++ CIT(A) held that the AO did not bring on record any ma....
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....it has been held that if the share application money is received by the assessee company from alleged bogus shareholders whose names are given to the AO, then the department is free to proceed to reopen their individual assessment in accordance with law but no such exercise has been conducted by the AO in the instant case. Hence, we are unable to see any perversity, ambiguity or any other valid reason to interfere with the impugned order and we uphold the same. " (vii) Decision of Hon. Delhi High Court in the case of CIT vs. Navodaya Castles Pvt. Ltd. in [2014-TIOL-1775-HC-DEL-IT] "Whether mere deposit of cash in the bank accounts prior to issue of cheque/pay orders would only raise suspicion, once the assessee had been able to show that the shareholder companies were duly incorporated and their identity & genuineness stands established - Whether it is for the AO to conduct further investigation, before any addition can be made u/s 68 in the guise that the money belonged to the assessee and was their unaccounted money, which had been channelized.: - held in favour of the assessee" (viii) Decision of Hon. Delhi High Court in the case of CIT vs. Shiv Dhooti....
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....utiny assessment proceedings. In view of the above, AO correctly concluded that the share application money received into the books of the assessee from all 17 parties remains unexplained and made addition of the said amount u/s. 68 of the Act. As per ld. DR in the complete chain, there is neither actual existence of any entity nor could assessee prove during the course of scrutiny assessment proceedings. Ld. CIT DR relied on the decision in the case of Nova Promoters & Finlease (P) Ltd., 342 ITR 169, Independent Media Pvt. Ltd. (2012) 82 CCH 133 Delhi and Major Metal Ltd. (2012) 251 CTR 385. 18. With respect to the loan received from GIPTECH of Rs. 90 lakhs, addition was made u/s.68. During the course of assessment the AO observed that in response to the show cause, notice issued by AO to explain credit of this amount, Assessee company has submitted Loan Confirmation from GIPTECH on the company's letter head wherein it has been confirmed that loan was given by them and it was through banking channel. While deciding this issue, the CIT(A) has relied on issue adjudicated in the case of Mrs. Vina Viren Ahuja for AY 2004-05 as there was identical issue wherein by placing relian....
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.... I.T.Act. In respect of assessment year 2004-05, the assessee has filed its return of income on 31-10-2004, which was processed u/s.143(1) but no scrutiny assessment notice u/s.143(2) was issued till 31-10-2005. As per the relevant provisions of law prevailing during the year under consideration notice u/s.143(2) is required to be issued before expiry of 12 months from the end of the month in which return was furnished. Accordingly, the AO should have issued notice u/s.143(2) by 31-10-2005. However, no such notice was issued, thus, the assessment is treated to be completed since on the date of search i.e. 31-10-2009, limit for issuing notice u/s.143(2) was already expired. In respect of assessment year 2005-06 assessee has filed its return of income on 29-10-2005, which was also processed u/s.143(1). For taking into scrutiny notice u/s.143(2) was required to be issued before 31-10-2006 i.e. time limit for issuing notice during the relevant assessment year under consideration. However, no notice u/s.143(2) was issued. Even no notice u/s.148 was issued for reopening of the assessment. Thus, the assessment for both the assessment years i.e. A.Y.2004-05 & 2005-06, had become final and ....
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....Delhi High Court in the case of Anil Bhatia (supra), on which CIT(A) has relied for dismissing legal ground raised by assessee. After elaborate discussion the Hon'ble High Court held, Head Note, reads as under :- A bare perusal of section 153A would indicate as to how a nonobstante clause has been inserted and with a defined intent. Where search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after 31-5- 2003, that the Assessing Officer is in a position to and mandated to issue notice within the meaning of sub-section (1) of section 153A. That is because, Chapter XIII within which the powers of search and seizure and powers to requisition books of account are spelt out enable the revenue to take care of cases where it effects a search and seizure. That search and seizure is effected and after the same is effected, books of account, other documents, money, bullion, jewellery or other valuable article or thing is found as a result thereof that notwithstanding anything and within the meaning of the above provisions having been concluded, it is open for the revenue to make an assessment. It is also open to ....
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....eedings pending in appeal, revision or rectification proceedings against finalised assessment/reassessment shall not abate. It is only because, the finalised assessments/reassessments do not abate, the appeal revision or rectification pending against finalised assessment/reassessments would not abate. Therefore, the argument of the revenue, that on initiation of proceedings under section 153A, the assessments/reassessments finalised for the assessment years covered under section 153A stand abated cannot be accepted. Similarly on annulment of assessment made under section 153A (1) what stands revived is the pending assessment/reassessment proceedings which stood abated as per section 153A(1). ■ Once it is held that the assessment has attained finality, then the Assessing Officer while passing the independent assessment order under section 153A read with section 143 (3) could not have disturbed the assessment/reassessment order which has attained finality, unless the materials gathered in the course of the proceedings under section 153A establish that the reliefs granted under the finalised assessment/reassessment were contrary to the facts unearthed during the course ....
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....equisitioned under section 132A after 31-3- 2003. There is a mandate to issue notices under section 153(1)(a) and assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made. Thus, the crucial words 'search' and 'requisition' appear in the substantive provision and the provisos. That would throw light on the issue of applicability of the provision. It being enacted to a search or requisition that its construction would have to be accordingly. That is the conclusion reached by the Division Bench in Murli Agro (supra). These are the conclusions which can be reached and upon reading of the legal provisions in question. ■ Therefore, the Special Bench's understanding of the legal provision is not perverse nor does it suffer from any error of law apparent on the face of the record. ■ Further, revenue would submit that the above observations and conclusions of the Special Bench are specifically disapproved in CIT v. Anil Kumar Bhatia [2012] 24 taxmann.com 98/211 Taxman 453 (Delhi). However, this argument is not f....
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....as pending in that case and thus there was no question of abatement of assessment. Therefore, the addition in the assessment u/s 153A would be made only on the basis of incriminating material found during the search. The Delhi Bench of the Tribunal in its recent decision on the issue in the case of Shri Kabul Chawla (supra) and others vide order dated 23.5.2014 has expressed the similar view. It has also discussed the decision of Hon'ble Jurisdictional Delhi High Court in the case of CIT vs. Anil Kumar Bhatia (2012) 211 Taxmann 453 (Del.), while deciding the issue. The relevant para No. 8 & 9 in this regard is being reproduced as under :- "8. We are unable to accept the contention advanced on behalf of the Revenue for the reason that if both the pending and completed assessment were to be taken on same pedestal, then there was no need to enshrine second proviso to sec. 153A( 1) providing that the pending assessments within the period of six assessment years shall abate. The Hon'ble Delhi High Court in the case of Anil Kumar Bhatia (supra) dealt with a situation in which some incriminating material was found in respect of a non-pending assessment. It was in that backgro....
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....o determine the total income of the assessee in respect of the relevant six assessment years. However, the scope of such determination of total income is different in respect of the years for which the assessments are pending vis-a-vis the years for which assessments are non-pending. In respect to the assessment years for which the original assessments have already been completed on the date of search, the total income shall be determined by restricting additions only to those which flow from incriminating material found during the course of search. If no incriminating material is found in respect of such completed assessment, then the total income in the proceedings u/s 153A shall be computed by considering the originally determined income. If some incriminating material is found in respect of 11 such assessment years for which the assessment is not pending, then the 'total income' would be determined by considering the originally determined income plus income emanating from the incriminating material found during the course of search. In the other scenario of the assessments pending on the date of search which would abate in terms of second proviso to sec. 153A( 1), the t....
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....Sanjay Agarwal, GM (Marketing) have resulted in additions, which have been upheld. The Hon'ble High Court has been pleased to note in this paragraph as "it is not the case of the appellant - assessee that initiation of proceedings u/s 153A was bad or unwarranted in law as no incriminating material was found during the search. The contention raised by the appellant - assessee is that the addition, which is the subject matter of questions no. (II) and (III), was/is not justified in the assessment order u/s 153, as no incriminating material was found concerning the addition u/s 115JB of the Act." The Hon'ble High Court has rejected this contention of the assessee with this finding that u/s 153A of the Act, the additions need not to be restricted or limited to the incriminating material, which was found during the course of search. Thus, it is clear from the facts of this case before the Hon'ble High Court that several additions relying upon the incriminating material found in the course of search were made by the AO in the assessment proceedings u/s 153A of the Act and addition u/s 115JB was made by the AO in absence of incriminating material concerning this addition. This addition wa....
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....anara Housing Development Company (supra) relied upon by the ld. CIT DR is concerned, the issue raised before the Hon'ble High Court was regarding validity of revisional order passed u/s 263 of the Act by the ld. CIT partly upheld by the Tribunal and during that course the Hon'ble High Court has also been pleased to discuss the decision in the cases of Anil Kumar Bhatia (supra) and the decision of Special Bench of the Tribunal in the case of All Cargo Global Logistic Ltd. (supra). It has been observed by the Hon'ble High Court that the condition precedent for application of sec. 153A is that there should be a search u/s 132 and initiation of proceedings u/s 153A is not dependent on any undisclosed income being unearth during the such search. The Hon'ble Rajasthan High Court in the case of Jai Steel (supra) has been pleased to hold that if any books of accounts or other documents relevant to the assessment had not been produced in the course of original assessment and found in the course of search, such books of accounts or other documents have to be taken into consideration while assessing or re-assessing the total income under the provisions of sec. 153A of the Act. Even any undis....
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....e of search no addition can be made in a case where original assessment was already framed on the date when search took place. 19. In absence of rebuttal of this material fact by the Revenue in the present case before us that no incriminating material was found during the course of search relating to the assessee for the assessment year under consideration to justify the additions made in the year by the Assessing Officer and assessment based on the original return of income filed under sec. 139 of the Act was not pending as on the date of search, we following the above cited decisions by the learned AR, discussed above, hold that the assessment framed under sec. 153A read with sec. 143(3) of the Income-tax Act, 1961 for the assessment year under consideration is not valid and the same is accordingly held as null and void. The related ground nos. 2 to 6 on the issue is thus allowed. 20. In view of the above findings, whereby the assessment itself has been held null and void, the other issues raised in other ground nos. 7 and 8 questioning the validity of the disallowance of deduction u/s 80IB on scrap sales (ground no.7) and disallowance made u/s 14A (ground no.8)....
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....bated shall stand revived. Thus, on a plain reading of section 153A, it becomes clear that on initiation of proceedings under section 153A, it is only the assessment/reassessment proceedings that are pending on the date of conducting search under section 132 or making requisition under section 132A stand abated and not the assessment/reassessments already finalised for those assessment years covered under section 153A. By a circular No. 8, dated 18-9-2003 the CBDT has clarified that on initiation of proceedings under section 153A, the proceedings pending in appeal, revision or rectification proceedings against finalised assessment/reassessment shall not abate. It is only because, the finalised assessments/reassessments do not abate, the appeal, revision or rectification pending against finalised assessments/reassessments would not abate. Therefore, the argument of the revenue, that on initiation of proceedings under section 153A, the assessments/reassessments finalised for the assessments years covered under section 153A stand abated cannot be accepted. Similarly on annulment of assessment made under section 153A(1) what stands revived is the pending asse....
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.... be interpreted as mere intimation assessment or otherwise, but the same shall be deemed to be accepted by the Assessing Officer and it will not have any different colour other than the return which is processed under section 143(3). Admittedly, in the case in hand, the return was processed under section 143(1) but the same has attained finality due to the expiry of limitation period of twelve months from the end of the month in which the return was filed. Hence, the assessment is deemed to be completed and not pending on the date of search on 14-8-2008. Admittedly, no incriminating material was found from the premises of the assessee during the search under section 132. Once assessment under section 143(3) had been annulled by higher authorities on the ground of legality of notice under section 143(2), re-opening under section 147 on that very ground would mean nothing else but abuse of process of law. Hence, the contention of the revenue that as the return was processed under section 143(1), it was a mere intimation and the Assessing Officer had reason to believe that income had escaped assessment and it was open to the Assessing Officer to re-assess the income ....
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....A No.2821/Del/2011, order dated 10-16-2014. 28. Our view is also supported by following decisions :- i) ITAT Mumbai Bench in the case of Shri Gurinder Singh Bawa vs. DCIT - 28 taxmann.com 328 ii) ITAT Mumbai Bench in the case of Anil P. Khimani vs. DCIT - No. 2855 to 2860/Mum/2008 dated 23-02-2010 iii) ITAT Jodhpur Bench in the case of Vishal Dembla vs. DCIT - 157 TTJ 189 iv) High Court of Bombay on the case of CIT v. Murli Agro Products Ltd. [2014] 49 Taxmann.com 172 v) ITAT Mumbai Bench in case of ACIT v. Jayendra P. Jhaveri [2014] 65 SOT 118 vi) Jodhpur ITAT in the case of Ayushi Builders & Developers vs. DCIT [2014] 166 TTJ 25 vii) ITAT Pune Bench in case of ACIT vs. SRJ Peety Steels P. Ltd. [2011] 137 TTJ 627 viii) Mumbai Tribunal in the case of Nikki Agarwal vs. ACIT dated 22-01-2014 being ITA No. 879jMj2011 [20 14-TIOL- 75-ITAT-MUM] ix) Mumbai Tribunal in the case of Parag M. Sanghvi vs. ACIT in ITA No. 8027/Mum/2010 dated 30-09-2015 x) Mumbai Tribunal in the case of Zeenat P. Sanghvi vs. DCIT in ITA No. 8026/Mum/2010 dated 19-12-2014 xi) Jaipur Tribunal in the case of Jadau....
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....mpleted assessment can be reiterated and the abated assessment or reassessment can be made. The word „assess' in Section 153A is relatable to abated proceedings (i.e. those pending on the date of search) and the word „reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. Conclusion 38. The present appeals concern AYs 2002-03, 2005-06 and 200607. On the date of the search the said assessments already stood completed. Since no incriminating ma....
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....not going into merit of the addition so made. 30. In the result, appeal for the assessment year 2004-05 & 2005-06 are allowed in terms indicated hereinabove. ITA No.2202/Mum/2013 (AY : 2006-2007) 31. In this appeal also the assessee has taken legal ground with regard to addition made u/s.153A r.w.s.143(3) of the I.T.Act. For this year the assessment was pending, therefore, there is no merit in the ground taken by the assessee to the effect that assessment was abated. Accordingly, the legal ground taken by the assessee in this year are dismissed. On merit the assessee is aggrieved for upholding addition on account of unsupported purchases made by the assessee. We have considered rival contentions and found from the record that during the course of search, it was asked to Director Mr. Viren Ahuja to produce the detail of expenses claimed by the company in respect of which invoices were not made available in the course of search. These expenses mainly covers payment made to various suppliers. One of the supplier during the year under consideration was Manav Impex from whom assessee has shown purchase of Rs. 64,74,581/-. In the search interrogation, Mr. Viren Ahuja, director o....
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....e site itself where the power project has been undertaken. However, the AO did not convince with the assessee's explanation and added the purchase amount in assessee's income as unproved purchases. Action of the AO was confirmed by the CIT(A), against which assessee is in further appeal before us. 33. We have considered rival contentions and carefully gone through the orders of authorities below and found from the record that before the lower authorities assessee had filed a letter in response to show cause notice issued by the AO, the assessee has supplied year-wise details of income received from the power projects contracts and subcontract expenses incurred in relation to the same. The assessee has also filed a statement showing tabular presentation of the Income earned by the Assessee Company from the project services and its corresponding subcontract expenses for the Assessment Year 2006-07. For the year under consideration, AO has made addition of Rs. 64,74,581/- in respect of payment made to M/s. Manav Impex. In relation to the aforesaid addition, it was explained to the AO that the Assessee Company has made payment to M/s. Manav Impex towards subcontract charges on ac....