TaxTMI 
TaxTMI 
TaxTMI 
2016 (1) TMI 1477
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.... u/s. 153(A) r.w.s. 143(3) of the Income Tax Act, 1961 in four assessment years. The last assessment year involves proceedings u/s. 143(3) of the Income Tax Act, 1961; in short "the Act". We proceed assessment year-wise for the sake of convenience and brevity. Assessment Year 2006-07 ITA 280/Rjt/2015 2. The assessee raised three substantive grounds in the instant appeal inter alia challenging validity of section 153A proceedings followed by his averments on merits against section 57disallowance in respect of interest expenses of Rs. 1,96,534/- in earning of interest income and the one u/s. 14A amounting to Rs. 45,498/-; respectively. We come to assessee's legal ground first. 3. This assessee/individual derives business income and from ....
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.... of 6 Assessment Years preceding the year in which search has been initiated. Thereafter, he has to assess or re-assess the total income of these six years as provided u/s 153A (1) (b). It was further clarified that only the assessments or re-assessments pending on the date of initiation of the search or requisition shall abate. The second proviso does not contain any word or words to the effect that no reassessment shall be made in respect of completed assessments. The courts have unanimous view that the language is clear in this behalf and therefore, literal interpretation should be followed. The Bombay Tribunal (special bench) held that such interpretation does not produce any manifestly absurd or unjust results as section 153A(1)(b) and....
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....tself come in the way of reopening and reassessment of total income in view of undisclosed income found in the course of search and seizure operation. And that section 153A in the nature of nonobstante clause removes all fetters imposed upon the /Assessing Officer u/s. 147/148. Next decision is (2012) 346 ITR 106 (AP) Gopal Lal Bhadruka vs. DCIT that a Assessing Officer can take into consideration any material other than what was already available during search and seizure operation for the purpose of completing a search assessment. Then comes the decision of (2014) 362 ITR 664 (Kerala) Sunny Jacob Jewellers and Wedding Centre vs. DCIT propounding a proposition that there is no prohibition or embargo on the department to consider any inform....
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....ance of Rs. 97,469/- on merits. Both parties agreed that our findings on legal ground hereinabove in preceding assessment year apply in absence of any distinction on facts or law. We appreciate this fair submission. The assessee's legal ground is accepted. Impugned search assessment is quashed on legality itself. ITA 281/Rjt/2015 is accepted. Assessment year 2010-11 ITA 282/Rjt/2015 9. The assessee's two substantive grounds raised in the instant appeal challenges validity of initiation of section 153A proceedings and correctness of addition of Rs. 1,57,753/- made on account of unexplained election expenditure. The assessee invites our attention to corresponding finding on the former issue as decided in precedingtwo assessment years. We f....
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....f the document is also attached. The assessee accordingly prays for this additional evidence. The Revenue strongly objects to this admission and prays for affirming the impugned findings. We tend to differ with this technical objection. There is no dispute about genuineness thereof. We observe in these facts and circumstances that procedural technicality shall not come in the way of substantive justice. We proceed on this proposition and admit this additional evidence. The Assessing Officer is directed to make necessary verification and pass a consequential order after affording adequate opportunity of the hearing to the assessee. This ground is remitted to the assessing authority. ITA 282/Rjt/2015 partly accepted for statistical purposes. ....
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....s not the Revenue's case that this jewelry does not contain stones and impurities therein. Both the authorities below also nowhere take into account the assessee's social economic status. We are also alive of the fact that the assessee has not filed any specific evidence in support of the plea to have received the impugned jewelry on various social occasions. We draw inference from assessee's and his families social economic status and hold that the impugned jewelry can be well said to have been received on various family functions and past savings thereof. We decide this ground in assessee's favour accordingly. 15. This leaves with us assessee's second ground covers foreign travel disallowance of Rs. 51,782/-. We find these expenses to ha....