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TaxTMI 
TaxTMI 
TaxTMI 
2017 (11) TMI 1476
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....d in holding that the proceedings u/s. 147 are validly initiated in spite of reproducing the facts which go to show that there was no new material to initiate proceedings u/s. 147 on an assessment that was made after scrutiny, and further in not following any of the judicial pronouncements that are cited. 3. The learned CIT(A) erred in confirming disallowance of Rs. 25,19,660/- made u/s. 40(A)(3) without appreciating the fact that the site was not purchased by the assessee and that no cash payment made to a single party has exceeded Rs. 20000/ - per day, towards purchase of materials. 4. The learned CIT(A) erred in confirming levy of interest u/s. 234-B in reassessment order though it should not have been as there was no interest in t....
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....ered in the individual names and purchased from their own sources', AO considered the amount of Rs. 1,20,00,000/- (wrongly recorded as Rs. 1,20,000/- in the satisfaction note) and also the payments which are verified in the scrutiny, to disallow an amount of Rs. 25,19,660/- in the reassessment u/s. 143(3) r.w.s. 147. 5. Before the Ld.CIT(A), assessee contended that the provisions of Section 40A(3) are not attracted and further reopening of assessment u/s. 147 is not as per the provisions of law. The detailed submissions and case law relied were meticulously extracted by the Ld.CIT(A) in his order from page No. 6 to 11, but unfortunately, Ld.CIT(A) did not adjudicate any of the contentions and rejected them summarily by stating as under: ....
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....4-12-2013 and how the same are rejected by AO in para 4 of impugned order. It was also further contended that Ld.CIT(A) has not adjudicated the issue at all. 7. Ld.DR, however, submitted that assessee has not fully disclosed the information as can be seen from the satisfaction note and the information called in survey was not used by the AO in the assessment u/s. 143(3) originally. So, the reopening u/s. 147 is as per the facts and law. 8. I have considered the rival contentions and facts placed on record. It is a fact that survey operations were conducted during the financial year itself and the AO came to know that the AOP was doing business from 01-01-2005 and returns were yet to be filed. It is on record that the members purchased the....
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....800/- made an amount of Rs.l,20,000/- was paid by way of cash for purchase of site admeasuring 1000 square yards' from M/s. Jayabheri Enclave during the period of Jan-March. 2005. Further, as seen from copies of cash bills placed on record, out of Rs. 13,34,294/- debited, an amount of Rs. 5,98,300/- was paid by way of Cash towards bricks, sand, etc., . (3) From the above payment made by the assessee, it is clear that the assessee violated provisions of sec. 40A(3) of the Act according to which the disallowance is required to be made towards under assessment of income to the tune of Rs. 25, 19,660/- (20% of the cash payments of Rs. 1,20,00,000 + 5,98,300= 12598300): and be brought to tax. This information was neither furnished in the ....
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....s done after four years from the end of the assessment year. The provisions of Section 147 are as under: "147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that wh....