TaxTMI 
TaxTMI 
TaxTMI 
2018 (1) TMI 1103
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....ke of convenience. The facts and issues in all the appeals are similar. However, in order to adjudicate the issues, we are taking up the appeal in ITA No.142/PUN/2016, relating to assessment year 2007-08. The issue raised in the present appeal is against claim of deduction under section 80IA(4) of the Act on additional income offered on account of purchases of Rs. 35,98,460/-. 3. The assessee in ITA No.142/PUN/2016, relating to assessment year 2007-08 has raised the following grounds of appeal:- 1. Whether on the facts and in the circumstances of the case and in law, the learned CIT(Appeals) erred in allowing deduction u/s.80IA(4) of the Act of Rs. 35,98,460/- on the additional income offered on account of purchases. 2. Whether on the facts and in the circumstances of the case and in law, the learned CIT(Appeals) erred in holding that the ratio laid down by the Hon'ble Mumbai High Court in the case of CIT Vs. ABG Heavy Industries Ltd. (2010) (322 ITR 323) (Bom) is applicable to the facts and circumstances of assessee's case? 3. Whether on the facts and in the circumstances of the case and in law, the CIT(A) erred in holding that the enterprise carrying on the business [of (i....
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.... 6.29 crores, respectively in the block period on account of inflation of expenses. He asked for set off of said disclosure while estimating the amount of non-genuine purchases. The Assessing Officer noted that the assessee had booked bogus expenses amounting to Rs. 89,79,588/- under the head 'Purchase of stilt and cement' for the year under consideration, which was added in his hands. The assessee had sought set off with the disclosure already made and also it was contended that the said income offered in respect of purchases was part of business income and infrastructural activities and was eligible for deduction under section 80IA(4) of the Act. 5. Against the assessment made under section 143(3) r.w.s. 153A(b) of the Act, the CIT(A) allowed substantial relief to the assessee. The Assessing Officer gave effect to the order of CIT(A) vide order dated 06.11.2012 and the balance income was determined at Rs. 2,90,66,850/-. The Revenue preferred an appeal before the Tribunal. Meanwhile, the case of assessee was reopened under section 148 of the Act by recording reasons for reopening the assessment. Notice under section 148 of the Act was issued on 28.03.2013. The assessee in respo....
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..../s. Manvir Metal Pvt. Ltd. were absolutely genuine and had been verified and so accepted by the Department during the course of search action. The CIT(A) thus, held that disallowance made by the Assessing Officer relying on statement of Shri Shinde was totally unjustified. He also noted that the assessee had not disclosed any additional income in the return filed in response to notice under section 148 of the Act in respect of purchases from M/s. Manvir Metal Pvt. Ltd. If the Assessing Officer wanted to make any addition on this account, then he should have issued proper show cause notice to the assessee giving an opportunity to substantiate the claim. The CIT(A) thus, held that in the absence of any disclosure being made by the assessee, there was no merit in making any addition on account of purchases from M/s. Manvir Metal Pvt. Ltd. Further, reference was made to the evidences filed by the assessee and verified during the course of search proceedings in respect of purchases from M/s. Manvir Metal Pvt. Ltd. Hence, the addition made by the Assessing Officer was held to be not sustainable and the addition of Rs. 1,41,60,277/- was deleted. This decision of the CIT(A) was in respect ....
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....essing Officer pointed out that the assessee was not eligible to claim deduction under section 80IA(4) of the Act on additional income. He further pointed out that the issue raised in grounds of appeal No.2 and 3 was against the deduction allowable to the assessee under section 80IA(4) of the Act. 11. The learned Authorized Representative for the assessee after taking us through the factual aspects of assessee pointed out that after search carried out against the assessee in 2009, assessment was completed and the deduction claimed under section 80IA(4) of the Act was denied on account of two reasons i.e. the assessee was not engaged in infrastructural projects, as the assessee was a developer; hence not entitled to claim the deduction. Secondly, the assessee had offered additional income on account of bogus expenses and on such enhanced income, deduction under section 80IA(4) of the Act was denied to the assessee. The Tribunal while deciding the appeal against 153A proceedings had allowed the deduction under section 80IA(4) of the Act on both the counts. He further pointed out that after Survey proceedings were carried out on the premises of assessee on 08.01.2013 and the assessm....
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....are raised against basic claim of deduction under section 80IA(4) of the Act. He pointed out that where the facts herein remain same, then the said deduction merits to be allowed to the assessee. In respect of ground of appeal No.4, he pointed out that the issue was only in respect of deduction claimed under section 80IA(4) of the Act on additional income. 13. We have heard the rival contentions and perused the record. In the facts of the present case, the assessee was engaged in the business of executing contracts of civil work. In the return of income filed for the year under consideration, the assessee had claimed deduction under section 80IA(4) of the Act. The assessee had furnished the return of income on 31.10.2007 declaring total income of Rs. 1.26 crores after claiming the aforesaid deduction at Rs. 7.89 crores. Search and seizure operations were carried out on 23.09.2009. In 153A proceedings, the assessee was held to be not eligible for claiming deduction under section 80IA(4) of the Act on the return of income filed by it. Further, during the course of search, certain additional income was offered by the assessee on account of certain expenses, on which the assessee clai....
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....ct of certain purchases, information could not be furnished. The Assessing Officer in such circumstances took up the case for reopening by recording reasons for reopening under section 147 of the Act and issuing notice under section 148 of the Act. The case of assessee was taken up for scrutiny and in the order passed under section 143(3) r.w.s. 147 of the Act, the Assessing Officer made two additions i.e. on account of purchases of Rs. 48,78,977/- from M/s. Manvir Metal Pvt. Ltd. being non-genuine and the balance addition was made on account of other purchases, for which no proof could be furnished by the assessee, hence, the additional income. It may be pointed out herein itself that the CIT(A) has deleted additions in respect of purchases made from M/s. Manvir Metal Pvt. Ltd., against which the Revenue is not in appeal. The issue which has been raised by the Revenue is against the claim of deduction under section 80IA(4) of the Act perse to the undertaking and claim of deduction under section 80IA(4) of the Act on additional income offered by the assessee. 15. Coming to the second issue raised by the Revenue. It may be pointed out that this is not first proceedings which have b....
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....3 ITR 175 (Bom) and in the case of CIT Vs. Sheth Developers (P) Ltd. in ITA No.3724/2010, vide order dated 27.07.2012 and also other decisions of Pune Bench of Tribunal. The Tribunal held the assessee to be eligible to claim the said deduction on the additional income offered. 17. Now, coming to the assessment completed on account of re-assessment proceedings under section 147 / 148 of the Act. The addition has been made on account of certain purchases, against which the assessee was unable to furnish complete documentary evidence of purchase order, delivery challans, transportation, etc. Undoubtedly, the said additional income has been assessed in the hands of assessee. The only issue which arises before us is whether the assessee is eligible to claim the aforesaid deduction under section 80IA(4) of the Act on such additional income. We find that the issue stands squarely covered by the order of Tribunal in assessee's own case for the instant assessment year, wherein pursuant to search operation upon the assessee, order under section 143(3) r.w.s. 153A(b) of the Act, for the year under appeal was passed. Further, the assessment was completed under section 143(3) r.w.s. 147 of the....