TaxTMI 
TaxTMI 
TaxTMI 
2022 (5) TMI 1170
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....der passed in pursuance of aforesaid notice is also void ab-initio. 3. The learned lower authorities have grossly erred in construing the general observation of the Hon'ble Income Tax Appellate Tribunal in another assessees case as findings or directions, though there was neither a finding nor a direction given by the Hon'ble Tribunal in the appellate order of another assessee. 4. The assessment order passed by the learned Assessing Off icer by recourse to sec 147 r.w.s 150 of the l.T.Act,1961 and upheld by the learned CIT(A) is ab-initio void , inasmuch as, no opportunity of being heard, in terms of Explanation 3 below section 153 of the I.T.Act,1961 was granted. 5. The notice issued under section 148 is void ab-initio, inasmuch as no satisfaction of the Jt CIT in terms of sec 151(2) of the I.T.Act,1961, was obtained prior to issue of notice u/s 148 of the I. T. Act, 1961. 6. The Learned lower authorities have grossly erred in holding that the status of the appellant was that of an " Association of Persons instead of Joint Owners' of separately and distinctly identifiable properties, and have further erred in framing the impugned assessment order. 7. The learned lowe....
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....,34,10,287/- 3. The Hon'ble ITAT has deleted the additions in the hands of the company treating the same as income of the joint lessee of Industrial Estate(assessee) who have filed the return of income for the A.Y 2008-09 and 2009-10 in the status of AOP. The A.O. find that the assessee for the A.Y 2007-08 has not filed the return of income and the A.O. has reason to believe that there is a income escaped the assessment and issued the notice u/s 148 of the Act on 27.03.2014 after obtaining the sanction u/s 151 of the Act. Subsequently the notice u/s 143(2) and 142(1) of the Act are issued. In compliance to notice, the assessee has filed the return of income on 02.06.2014. Subsequently, the Ld. AR of the assessee appeared from time to time and submitted the details as called for and the case was discussed. The assessee has filed the objections on the initiation of reassessment proceedings vide letter dated 13.02.2015 and the reply to the objections was provided to the assessee on 18.02.2015. 4. The assessee is a AOP and having income from house property, capital gains and other sources. The assessee has submitted the details by letter dated 10.10.2014 referred at Para 4 of the ord....
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....te bank account in respect of transactions relating to the said estate property. And therefore, all the transactions of the Joint Lessees were made by the Company on behalf of the Joint Lessees through the bank account of the said Company, under the said Power of attorney. Year to Year, the rent collected by the Company on behalf of the joint Lessees and other receipts received on behalf of the Joint Lessees were credited by the company to the ledger account in Company's books of account and all payments made by the Company on behalf of the joint Lessees were debited to the said account. Likewise, the Company made investments on behalf of the said joint Lessees under the Power of Attorney as above out of the funds belonging to the joint lessees. 5. Whereas, the A.O. has considered the facts of rental income from property/other incomes and observed as under: 'During the course of assessment proceedings, the assessee has claimed loss from house property and declared income from transfer of tenancy right & long term capital gains on sale of property and their distribution among the members of the AOP, vide chart reproduced below: Income from house property as per computatio....
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....ncome and assessed the income from house property of Rs. 3,22,080/- as against the loss of Rs. 5,88,542/- claimed by the assessee. (ii) The A.O has made an addition of long term capital gains Rs.13,30,000/- from receipt of transfer fees/ compensation of tenancy rights and short term capital gains of Rs.9,433/- under the head income from capital gains.(iii) on applicability of provisions of Sec. 50C of the Act, the A.O. observed that in the assessee's case the market value exceeded the sale consideration. The property value is less than the stamp duty value of S.R.O disclosed by the assessee and made an addition of differential value of Rs.2,91,20,000/-.(iv) the A.O. observed that the assessee has not offered the long term capital gains on sale of property and made addition of Rs. 4,02,89,600/-.(v) the A.O. find that the assessee has received the consideration towards the improvement and up gradation of amenities along with the other income and is taxed under income from other sources Rs. 25,11,248/-. Finally the A.O. has assessed the total income of Rs.11,34,85,740/- and passed the order 143(3) r.w.s 147 of the Act dated 31.03.2015. 7. Aggrieved by the order, the assessee has file....
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.... filed the return of income for the A.Y 2008-09 and 2009-10 in the status of AOP. Whereas for the A.Y 2007-08, the assessee has not filed the return of income and the A.O. has issued notice u/sec148 of the Act after recording the reasons based on the observations of the Hon'ble Tribunal in ITO Vs. Industrial Estates Pvt Ltd in ITA No.4171,4920&4671/Mum/2009 for A.Y 2005-06, 206-07 &2007-08. 2006-07 order dated 30-08-2013 at Page 5 Para 13 to 15 which is read as under: 13. We have considered the rival submissions and carefully perused the orders of the lower Authorities and the material evidences brought on record in the form of Paper Book. It is not in dispute that the assessee is managing the said piece of land on behalf of the Joint Lessees. It is also not in dispute that the Joint Lessees came into possession of the said piece of land by virtue of Lease Agreement with the Trustees of the N.M. Petit Charity Fund. It is also not in dispute that the assessee was holding a Power of Attorney for collecting rent on behalf of the Joint Lessees. It is also not in dispute that the assessee was operating the Bank Account by virtue of this Power of Attorney on behalf of the Joint Lessees....
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....he specific Para on reasons recorded placed at page 9 for issuing notice as under: "The ITAT deleted the additions made in the hands of the company saying they are income of the joint lessees who have filed returns for income for A.Y 2008-09 & 2009-10 in the status AOP. The assessee has not filed return of income as AOP for A.Y 2007-08. The failure on the part of the assessee has resulted in escapement of income of Rs. 6,34,10,287/- as discussed above. Therefore I have reason to believe that income amounting to Rs. 6,34,10,287/- has escaped income on account of failure of the assessee to file return of income." 12. The Ld.AR made submissions on the applicability of provisions and the time limit for completion of assesseement u/s 153(1) &153(3) of the Act read with explanation 2(b) of the Act, were any income is excluded from total income of one person and held to be the income of the other person. The A.O. has considered/formed a belief that the income which is excluded in the hands of M/s Industrial Estates Pvt Ltd has to taxed as income of the assessee. 13. We on perusal of the notice issued u/s 148 of the Act find that the A.O has recorded the reasons for reopening purely ....