TaxTMI 
TaxTMI 
2016 (2) TMI 1214
X X X X Extracts X X X X
X X X X Extracts X X X X
....or consideration is with regard to reopening of assessment under Section 147 of the Income-tax Act, 1961 (in short 'the Act'). According to the Ld. counsel, a search was conducted by the Revenue authorities under Section 132 of the Act on 23.08.2006 in the residential premises of Velmurugan Group. On the basis of the material found during the course of search operation, the assessment was completed under Section 153C of the Act on 31.12.2008. The Ld.counsel further submitted that there was search for second time in the premises of Shri K. Paneerselvam on 18.03.2010. On the basis of the material found during the course of search operation, a notice was issued under Section 148 of the Act on 28.03.2011. The Ld.counsel further submitte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Assessing Officer, the Ld.counsel for the assessee submitted that during the course of search operation in the case of Shri K. Paneerselvam, an agreement dated 11.12.2003 relatable to the assessee was found. Referring to the agreement dated 11.12.2003, a copy of which is available at page 11 of the paper-book, the Ld.counsel submitted that even though it was agreed to transfer the bus along with route permit for a sale consideration of Rs. 70,75,000/-, subsequently it was found that the route permit was expired on 23.04.2004 and the Regional Transport Authority refused to renew the route permit beyond 23.04.2004. Therefore, the assessee could not proceed further pursuant to the agreement found at page 11 of the paperbook. In fact, the agree....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... paper dated 11.12.2003, which acknowledges the receipt of Rs. 50,00,000/- out of the total consideration of Rs. 70,75,000/- for sale of bus bearing Regn. No.TN 58 C 7980 along with route permit between Madurai and Dindigul, by the assessee to Shri K. Manoharan. According to the Ld. D.R., the said Shri K. Manoharan is a brother-in-law of Shri K. Paneerselvam. During examination, Shri Paneerselvam admitted that the purchase was made by his brother-in-law Shri K. Manoharan and also clarified that the transaction was not disclosed to the Department. Therefore, according to the Ld. D.R., the Assessing Officer issued a notice under Section 147 of the Act to reopen the assessment completed under Section 153C of the Act. According to the Ld. D.R.,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ow the assessee claims that the route permit expired on 23.04.2004 and the renewal of the route permit was also rejected by the Regional Transport Authority. The fact remains that the assessee filed an appeal before State Transport Appellate Tribunal and the latter allowed the appeal of the assessee and directed the Regional Transport Authority to renew the route permit. Accordingly, the route permit was renewed. Therefore, it is not correct to say that the bus alone was sold. According to the Ld. D.R., the bus was transferred along with route permit, therefore, it is not correct to say that the assessee has received only Rs. 3,50,000/-. The Ld. D.R. further submitted that even though originally the assessee proposed to sell the bus along w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....48 of the Act. According to the Ld. A.R., on the basis of search operation, the proceeding should have been initiated under Section 153C of the Act. The fact remains that this is the second round of search conducted by the Revenue authorities subsequent to the material found in the case relatable to the assessee. In the first round of litigation, the search was conducted in the premises of Velmurugan group of companies where the material relating to the assessee was found. Therefore, assessment under Section 153C of the Act was completed on 31.12.2008. Since the block assessment was already completed, the Assessing Officer, on the basis of material found during the search operation on 18.03.2010 in the case of Shri K. Paneerselvam, reopened....