2016 (12) TMI 1876

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.... facts in confirming addition of Rs. 4,82,953/- on account of unexplained investment u/s 69 of the Income Tax Act, 1961; (ii) The learned Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming addition of Rs. 73,182/- on account of treating agricultural income as income from undisclosed sources. 3. Ld. Counsel for the assessee at the outset contends that assessee and many other entities were floated by and connected to M/s. M.D. Patel Group which was searched. The said M D Patel group owned up the transaction of the connected entities. Similar issues reached ITAT in various cases including Smt. Alkaben Amrutram Guru and Smt Kanchanlal Natwarlal Rana. Ahmedabad ITAT in ITA No. 885/Ahd/2013 and 1506/Ahd/2....

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....aw and on facts in not deleting the addition of Rs. 90,000/- made by the Assessing Officer on account of alleged unexplained gifts received by the assessee. 2. The learned CIT(A) has erred in law and on facts in not deleting the addition of Rs. 2,02,07,402/- made by the Assessing Officer on substantive basis on account of alleged unexplained capital/interest income/donation etc." 3.2 Ld. Counsel for the assessee contends that the assessee filed return of income on 21.01.2002 at income of Rs. 1,30,000/- (+ Agricultural Income of Rs. 73,182/-), which was processed u/s 143(1) of the Act. Consequent to search on M/s. M.D. Patel Group, it was reopened and reassessed vide order dated 26.12.2008 u/s 143(3) r.ws. 147 of the Act at Rs. 2....

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....sessment itself is being set aside, all the material being on record, no new facts will be required or brought on record before the lower authorities qua the additional grounds which are already subject matter of impugned assessment.. (ii) The additions in question are subject matter of assessment and by inadvertence remained to be taken in memo of appeal due to multiplicity of proceedings, misunderstanding about the grounds taken in multiple proceedings; the assessee's inadvertence being bona fide the additional grounds may be admitted for setting aside along with other issues. (iii) The additions in question raised go to the root of the assessment and there non-adjudication will result in double taxation, miscarriage of ....

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....ilable on record and gone through the orders of the authorities below. We find merits in the contentions of the ld. Counsel for the assessee. In our considered view, all these issues involve Settlement Petition and income owned up by M/s. M.D. Patel Group in respect of all the constituents. It is not disputed that the assessee is connected to M D Patel Group and the fact that the additions in question are subject matter of reassessed income as well as impugned reframing of assessment u/s 143(3) r.w.s. 263 of the Act. The doubt of ld. DR that the additional grounds will require verification of fresh evidence and facts seems to be out of place inasmuch as the relevant record of the Settlement Petition and other relevant evidence is on the rec....