TaxTMI 
TaxTMI 
TaxTMI 
2019 (3) TMI 813
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....the petitioner herein on 5.4.2013, which culminated into an assessment order dated 18.3.2015 under section 143(3) read with section 153A of the Act, whereby an amount of Rs. 3,00,000/- came to be added under section 69 of the Act on the ground that the petitioner had made undisclosed investment in respect of Flat No.G-302 purchased from M/s J.P. Iscon Ltd. The petitioner carried the matter in appeal before the Commissioner (Appeals), who, by an order dated 11.8.2017 deleted the addition of Rs. 3,00,000/-. Revenue did not prefer any appeal before the Income Tax Appellate Tribunal on account of low tax effect involved. 4. Thereafter, by the impugned notice dated 30.3.2018, assessment of the petitioner is sought to be reopened on the ground that Rs. 3,00,000/- has escaped assessment towards undisclosed income in respect of Flat No.G-302 purchased from M/s J.P. Iscon Pvt. Ltd. By a letter dated 25.4.2018, the reasons recorded came to be furnished to the petitioner. By a communication dated 23.6.2018. the petitioner raised objections to the reasons recorded. By an order dated 20.8.2018, the respondent rejected the objections filed by the petitioner. Being aggrieved, the petitioner has ....
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....ment is sought to be reopened has merged with the order of Commissioner (Appeals), it had no independent existence and, therefore, the assessment could not be reopened in respect of the said items. It was, accordingly, urged that on the reasons recorded, the Assessing Officer could not have formed the belief that any income chargeable to tax has escaped assessment and that the assumption of jurisdiction on the part of the Assessing Officer under section 147 of the Act is without authority of law. 6. Vehemently opposing the petition, Mrs. Mauna Bhatt, learned senior standing counsel for the respondent, submitted that in this case the order under section 143(3) read with section 153A of the Act had been made based upon the search carried out at the premises of the petitioner-assessee, whereas the impugned notice under section 148 of the Act has been issued on the basis of the reasons recorded which are based upon the search carried out in the premises of M/s J.P. Iscon Pvt. Ltd. from whom the petitioner had purchased the property in question. 6.1 Referring to the reasons recorded for reopening the assessment, it was submitted that the Assessing Officer has recorded that on analysis....
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....ed out at the premises of J.P. Iscon Pvt. Ltd. was not in his possession and, therefore, such material could not be considered by the Assessing Officer at the time of framing assessment under section 143(3) read with section 153A of the Act, and by the Commissioner (Appeals) while passing the appellate order. 6.4 The learned counsel further reiterated the averments made in the affidavit-in-reply filed on behalf of the respondent. It was, accordingly, urged that the Assessing Officer on the basis of the material found during the course of search in the case of J.P. Iscon Pvt. Ltd., has after duly applying his mind to the facts of the case, found that income chargeable to tax has escaped assessment and that formation of such opinion being based on material found during the course of search, there is no warrant for interference by this court. 6.5 As regards the contention regarding lack of sanction under section 151 of the Act, the learned counsel referred to the contents of paragraph 8 of the affidavit-in-reply filed by the respondent, to submit that he has categorically stated therein that notice under section 148 of the Act was issued after taking prior approval of the authority ....
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....f the Act. 9. From the reasons recorded, it emerges that on analysis of the data seized during the course of search carried out at the premises of J.P. Iscon Group, the Assessing Officer found that J.P. Iscon Pvt. Ltd. received a total of Rs. 61,45,000/- from Shri Jankit C. Prajapati for Unit/Flat G/302, out of which, Rs. 56,45,000/- was received by J.P. Iscon Pvt. Ltd. in cash; the assessee had not disclosed such cash payment in its return of income, profit and loss account and balance sheet for assessment year 2011-12 to assessment year 2013-14 and hence, the source of such cash payment remained unaccounted and undisclosed in the hands of the assessee. The Assessing Officer further found that on verification of the return of income filed by the assessee, it was noticed that the assessee had shown total income of Rs.Nil only for assessment year 2011-12 and had not offered the amount of Rs. 3,00,000/- (being undisclosed and unaccounted cash paid to M/s J.P. Iscon Pvt. Ltd. in financial year 2010-11) as income and hence, the assessee had understated his income to the extent of Rs. 3,00,000/-. According to the Assessing Officer, therefore, the source of the cash payment of Rs. 3,00,....
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....ing Officer had found that cash payment of Rs. 56,45,000/- was made by the assessee in cash to J.P. Iscon Pvt. Ltd. towards purchase of Flat G-302, out of which Rs. 3,00,000/- was paid in cash in the year under consideration. Accordingly, the assessment had been framed for assessment year 2011-12 under section 143(3) read with section 153A of the Act making addition of Rs. 3,00,000/- under section 69 of the Act for the year under consideration. 12. Now, on the basis of the material found during the course of search carried out in the case of J.P. Iscon Pvt. Ltd., wherein similar facts are revealed, viz., that the petitioner had paid Rs. 56,45,000/- in cash, out of which an amount of Rs. 3,00,000/- was paid during the year under consideration, the Assessing Officer seeks to reopen the assessment under section 147 of the Act. 13. Section 147 of the Act provides that 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 section 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 s....