TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 11
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....herefore, for the sake of brevity have been taken simultaneously for adjudication by this composite order and for brevity the facts of ITA No.274/Asr/2019 shall be quoted and result of the same shall apply mutatis mutandis to the other appeals. 3. The brief facts of the case are that assessee had filed its return of income on dated 31.3.3011 by declaring the income of Rs. 2,80,000/- which was processed and completed u/s 143(1) of the Act vide order dated 17.04.2011. Thereafter, on dated 11.02.2016 a search operation u/s 132 of the Act was carried out at the residential premises of the assessee as well as at the other concerns/ persons of Bhagwati Group of Ferozepur. In consequence to which notice u/s 153A of the Act was issued on 13.06.201....
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....d his son are to be taxed for the deemed dividend received, it would be logical to assess only 50% of the amount in the hands of the assessee, therefore, 50% of the accumulated profit which comes to Rs. 5,97,736/- is warranted and therefore added in the income of the assessee. 4. The assessee challenged the said addition before the Ld. CIT(A) who vide impugned order dated 11.02.2019 upheld the action of the AO for making the addition under challenge, against which the assessee is in appeal before us. 5. The Assesse while relying upon the judgment of Delhi High Court in the case of CIT vs. Kabul Chawla 61 taxmann.com 412, submitted that assessee's assessment has already been completed as on the date of search and no incriminating mater....
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....found during the search u/s 132(1) of the Act from the assessee possession or his premises, on the basis of which the additions have been made and it is also a fact that the Income Tax Return filed by the assessee for the relevant assessment year: 2011-12 has been processed and completed on 17-04-2011 by the Revenue Department u/s 143(1) of the Act. Therefore, it cannot be said that assessment proceedings were pending as on the date of search operation on dated 11-02-2016 and while initiating the proceedings u/s 153A of the Act. Even it is not the case of the Revenue department that assessment proceedings were alive and pending as on the date of search. Whereas both the authorities below held that as per Kerala high Court judgment in the ca....
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.... CTR (Guj) 421 (Gujrat High Court) (4) CIT vs. Deepak Kumar Agarwal & Ors [2017] 100 CCH 0011 (Mumbai High Court) (5) Pr. Joint CIT vs. Meeta Gutgutia [2017] 395 ITR 526 (Delhi High Court) (6) Pr. Joint CIT vs. Meeta Gutgutia [2018] Taxmann.com 411 (Supreme Court) in SLP (C) Dairy No. 18121/2018 dated 2nd July, 2018. 11. No doubt there are judgments on both sides to the issue, however, as per decision of Hon'ble Apex Court in the case of CIT Vs. Vegetable Products 88 ITR 192 , wherein the Hon'ble Court laid down the proposition to the effects "whenever there are two reasonable constructions of a taxing provision are possible that construction which favours the assessee must be adopted" meaning thereby when two different views....
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....ed as assessment, however it is a fact that in this case Income Tax Return filed by the assessee for the relevant assessment year: 2011-12 has already been processed and completed on dated 17.04.2011 by the Revenue Department u/s 143(1) of the Act and it is not the case of the Revenue Department that the assessment proceedings were still alive as on the date of search operation, therefore the case cited by the Ld. CIT DR is distinguishable on facts. Even from the orders passed by the authorities below there is nothing to suggest as to what incriminating material has been found on dated 11.02.2016 during the search u/s 132(1) of the Act from the assessee possession or his premises, on the basis of which the additions have been made. As the....