TaxTMI 
TaxTMI 
2018 (11) TMI 1694
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....mount of Rs. 26,00,000/- constitute goodwill as there cannot be such goodwill for a land used for the purpose of agricultural operations. 3. The Hon'ble CIT(A) ought to have observed that the amount paid was only a capital payment in lieu of source of livelihood foregone by the assessee and there cannot be any goodwill especially for a land given for development. 4. The Hon'ble CIT(A) ought to have observed that in the given facts and circumstances of the case the amount paid to the assessee cannot be termed as goodwill as the relevant project was not complete even after lapse of ten years. 5. The Hon'ble CIT(A) ought to have observed that for a project dragged on for more than 10 years and taking into consideration the fact that the assessee foregone his land and did not receive the benefits, the amount received can never be considered as goodwill. 6. The Hon'ble CIT(A) ought to have held that whatever amount was received has to be setoff against the benefits lost by the assessee i.e. non-receipt of constructed area for 10 years and non-realization of any proceeds in respect of such constructed area and therefore there cannot be ....
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....tructure developers Pvt. Ltd (Presently known as BRC Infra Pvt Ltd) on 21 March, 2014 wherein a development agreement cum General power of Attorney entered into by the assessee on 14.08.2007 vide Doc No. 7952/07 for the land ad measuring A c. 0.11 guntas in Survey No. 1 94 and ac. 0.10 guntas in survey no. 195 total admeasuring Ac 0.21 guntas situated at puppalaguda village, Rajendra Nagar MandaI. R.R District for a consideration of 25000 sft. saleable residential built up area was found. He submitted that proceedings u/s 148 were initiated and assessment u/s 143(3) read with section 147 of the Income Tax Act, 1961 was made. 5.1 He submitted that since the entire assessment emanated from Search & Seizure Operations u/s 132 of the Income Tax Act, 1961 in the premises of M/s CRK infrastructure developers Pvt. Ltd (Presently known as BRC Infra Pvt Ltd) on 21 March, 2014 u/s 153A of the Act, the appropriate proceedings in the case of the assessee ought to have been initiated by the AO u/s 153C of the Act, and therefore, the entire assessment proceedings are invalid without any jurisdiction. In this connection, he relied on the following cases: 1. Shri Mirza Rafiullah Baig, ....
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....it shows that these are separate provisions independent of other provisions relating to reassessment, because of the non obstante clause begins with the said sections. The language used in these sections, i.e. 'notwithstanding anything contained' in section 139, section 147, section 148, section 149, section 151 and section 153 made it clear that provisions of these sections are not made applicable to the assessments covered by the provisions of section 153A. Prior to the introduction of these three sections, there was a separate chapter XIV -B of the Act, by section 158BC to 158BE which governs the search assessments which is popularly known as Block assessment. The earlier provisions provides for single assessment to be made in respect of undisclosed income of Block period consisting of 10 assessment years immediately preceding the assessment year in which search took place and the broken period of up to the date of search was also included in the block period. After the introduction of new sections, i.e. section 153A to 153C, the single block assessment concept was done way with the new scheme of assessment of search cases where the Assessing Officer is to assess or reas....
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....y preceding the assessment year in which search or requisition is made. Another significant feature of this section is that the Assessing Officer is empowered to assess or reassess the total income of the aforesaid period which includes disclosed and undisclosed income. Therefore, the new provisions has given wide powers to the Assessing Officer to assess or reassess the total income of six assessment years falling within the period of those six assessment years immediately preceding the assessment year in which search is conducted. Under the new provisions of section 153A, the statute is provides wide powers to the Assessing Officer in respect of assessments already completed u/s 143(1) or 143(3). If such orders is already in existence prior to the initiation of search, the Assessing Officer is empowered to reopen those proceedings and reassess the total income taking note of the undisclosed income, if any, found during the course of search. For this purpose, the restrictions imposed on the Assessing Officer by way of sections 148 to 153 to reopen the assessment ITA.1154 & 1155/Bang/2015 Page - 11 u/s 147 has been removed by the non abstante clause used in section 153A. 1....
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....serted in to the Act to deal exclusively with search cases. The legislators in their wisdom clearly spelt out the provisions of law applicable to search cases by using the word shall to begin with section 153A, made it mandatory that the Assessing Officer bound to issue notice u/s 153A or 153C, thereafter proceed to assess or reassess the total income, where search is conducted u/s 132 or requisition is made u/s 132A. Therefore, in our opinion, the AO is not justified in reopening the assessment u/s 147 and his order is illegal and arbitrary. In view of the above and in view of the decision relied upon by the assessee, we do not find any merit in the appeals filed by Revenue." 07. At this stage we may like to point out that the decision relied upon by the Revenue in the matter of Gudwill Housing Ltd (supra) was a decision on Section 158BD under the old Act. There is a significant difference in the construction, language and content of both the provisions i.e Section 158BD under the old Act and section 153C of new Act of 1961. Section 153C of 1961 Act, starts with a non-obstante clause, whereas this non-obstinate provision was not there in Section 158BD. Therefore ....