TaxTMI 
TaxTMI 
2020 (1) TMI 1034
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....f appeal:- 1. That order passed u/s 250(6) of the Income Tax Act, 1961 passed by Ld. Commissioner of Income Tax (Appeals), Bathinda is against law and facts on the file in as much he was not justified to arbitrarily uphold action of the Ld. Assessing Officer in making addition of Rs. 1,00,000/- received from Sh. Nusrat Ikram Khan Bagga as advance against sale of shop. 2. That the Ld. CIT(A) further gravely erred in upholding action of the Ld. Assessing Officer in treating alleged excess jewellery found during the course of search at Rs. 8,16,625/- as undisclosed income. 3. Apart from the above grounds of appeal, the assessee has taken the following additional ground:- "On the facts and circumstances of the case....
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....s, the Ld. Counsel for the assessee submitted that, in fact, the agreement with Shri Nusrat Ikram Khan Bagga was for sale of four shops for a total consideration of Rs. 10 lacs, out of which, Rs. 1 lac was received as advance in cash on 9.3.2007. Later on, another payment of Rs. 6 lacs on 2.4.2007 was received ,however, Shri Nusrat Ikram Khan Bagga failed to make the balance payment of Rs. 3 lac since he was not in a position to pay the remaining amount of Rs. 3 lacs, the agreement was amended on 16.7.2009, whereby, the assessee agreed to sell two shops for Rs. 5 lacs. Hence, out of the total amount of Rs. 7 lacs, Rs. 2 lacs was returned to Shri Nusrat Ikram Khan Bagga. That the amount received from Mr. Nusrat Ikram Khan Bagga stands reflec....
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....ssment in this case was framed u/s 153A of the Act whereas as per the clause (b) of sub section (1) to section 153A, the Assessing officer would assess or reassess total income of 06 assessment years immediately preceding the assessment year, relevant to previous year in which such search is conducted or requisition is made. He has furthered contended that the search in this case was conducted on 12.10.2006 and, therefore, the assessment u/s 153A of the Act could have been made only for 06 assessment year immediately preceding the assessment year relevant to searched year i.e. for the assessment years 2001-02 to 200607 only and not for the assessment year under consideration i.e. assessment year 2007-08. He, therefore, has contended that th....
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....s defence is not open that it may be treated as a mere mistake of wrong provision of statute. The relevant part of the observations made by the Hon'ble Allahabad High Court is reproduced as under:- "16. However the above proposition has no application for the reason, when a power is exercised under a particular provision and in the manner, it is so contemplated in such substantive provision, then this defence is not open that it may be treated as a mere mistake of wrong provision of the statute. Notice was specifically served under Section 153A. Assessment order clearly says that it is being passed under Section 153A. Moreover, jurisdiction for making assessment under Section 153A read with Section 153C apparently is q....
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.... and issuance of notice under section 143(2) of the Act on the other hand, we are unable to accept the plea advanced by the Ld. D.R. 17. Coming to the merits of the case, we, after having considered the provisions of section 153A, 153B and 153C, are of the opinion that though the provisions 153B(1) (b) provide the limitation for completing the assessment for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A of the Act, but there being no provision as to under which provision of law, the assessee can be called upon to furnish its return for that assessment year only under the provisions of section 139 and it is only in case of failure of the ass....