TaxTMI 
TaxTMI 
2017 (4) TMI 718
X X X X Extracts X X X X
X X X X Extracts X X X X
....s nothing to suggest that the assessment or reassessment of total income is to be confined only to the material or evidence found as a result of search. 4. the order of the ld CIT(A) is erroneous and is not tenable on facts and in law." 3. The brief fact of the case is that the assessee is a company engaged in the business of real estate. It filed its return of income on 27.03.2016 declaring total loss at Rs. 6632070/-. The assessee as alleged by the AO is part of Today Group of cases who was searched on 26.11.2002 which was finally concluded on 25.01.2010. The case was selected for scrutiny and a sum of Rs. 15 lakhs was added in respect of advance received from Savsudha. Further, Rs. 798348/- was also disallowed on account of excess depreciation on the assets and a further sum of Rs. 4827364/- was disallowed out of travelling and conveyance expenses. The assessment order u/s 143(3) read with section 153C/ 153A of the Act dated 28.12.2011 was framed at total income of Rs. 15 lakhs and business loss was determined at Rs. Nil. The assessee aggrieved with the order of the ld AO preferred appeal before the ld CIT(A), who in turn deleted the addition holding that in absence of inc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rcise. (iii) The Assessing Officer will exercise normal assessment powers in respect of the six years previous to the relevant assessment year in which the search takes place. The Assessing Officer has the power to assess and reassess the "total income" of the aforementioned six years in separate assessment orders for each of the six years. In other words, there will 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". (iv) Although section 153A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the Assessing Officer which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance or nexus with the seized material. Obviously, an assessment has to be made under this section only on the basis of the seized material." (v) In the absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word "assess" in section....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dated-01.03.2007 of Bank of Rajasthan by Modhwaj Singh from New India City Developer Pvt. Ltd as loan amount. PARTY - H-2, ANNEXURE A-2: Page No Description 60-78 The Development Agreement made on 3rd March 2007 between Mordhwaj Singh, Vikramjeet Singh, Ram Narayan Singh with New India City Developer Pvt Ltd. B-44. Jangpura New Delhi to develop the 35.2062 property- at the rate of Rs. 1000000/- per acre total amounting to Rs. 35205000/- and Rs. 19740000/- has already been received by the owners. PARTY - H-2. ANNEXURE A-9: Page No Description 61-63 Copy of tripartite development agreement .dated 22-07-2008 among V G Investment PVI. Ltd THIPL and New India City Developer Pvt Ltd regarding development oi" land situated at Mayfield Garden, Sector-51, District Gurgaon, cost of which to be borne by the developer i.e. M/s Today j Homes and Infrastructure Pvt Ltd (THIPL) PARTY - H-2. ANNEXURE AA-1: Page No Description 66-69 Copies of share transfer form of New (mli;t City Developer Pv< Ltd transferring shares tn THIPL Premise: 15'" Floor. Statesman House, Barakhamba Road, New Delhi (PARTY - H-l I) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....intiate proceedings u/s 153c of the Income Tax Act, 1961 is fulfilled. Therefore, I am satisfied that case of M/s. New India City Developer Pvt. Ltd is a fit case for intiation of proceedings u/s 153C of the Income Tax Act, 1961. Accordingly, notices u/s 153 of the Income Tax Act, 1961 are issued for Assessment Year 2004-05 to 2009-10, in the case of M/s. New City Developers Pvt Ltd i.e. the assessee company 8. The above satisfaction note was explained by the assessee as under:- "In continuation of our previous letters dt.25.11.2011 we hereby submit the following details pertaining to seized material bearing no. 34 of your letter dated 17.08.2011 The 'page bearing no. 73 Party - H-l Annexure A-l (A.Y.2009-10) pertains to photocopy of a cheque bearing no. 764422 dated 05.03.2009 for Rs. 4,00,000/- drawn on Vijaya Bank and the same has been issued by M/s. Mayfield Projects in favour of M/s. New India City Developers Pvt Ltd. This cheque has duly been accounted for in the books of account of the company on dated 18.03.2009 , statement of account of M/s. Mayfield Projects in the books of assessee company showing the said ledger entry has already been submitted to your offi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2, Annexure AA-1 pertains to shares issued by M/s. New India City Developers Private Limited to M/s Today Homes and Infrastructure Private Limited, details of which have already been filed with your office. The page bearing no 23-41 Party - H-17, Annexure A-4 (A.Y.2007-08) pertains to a development agreement dated 03.03.2007 entered into by M/s. New India City Developers Private Limited with the land owners for the development, promotion of real estate project on 35.2062 acres land @ 10,00,000/- per acre totaling to Rs. 3,52,05,000/- plus Rs. 15,00,000/- per acre as refundable amount totaling to 5,28,09,000/- as per plan approved and sanctioned by concerned authorities. M/s New India City Developers Pvt Ltd, being a group company, hence these papers have been found at the premises of THIPL. Rs. 8,80,14,000/- have been duly accounted for in the account of the land owners mentioned in the development agreement shown under the head "Loans & Advances" in the balance sheet of the company. The same has been paid out of company's own funds as well as advance taken against the project. We enclose herewith the copy of ledger account of these parties showing the total payment of Rs....