TaxTMI 
TaxTMI 
2022 (9) TMI 1031
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....,9,10 1,2,3,7,9,10 Validity of the search - Ground No. 4 4 4 4 4 4 4 Addition towards unaccounted sales - Ground No. 5 5 5 5 5 5 5 Disallowance u/s.10B - Ground No. 6 6 6 N/A N/A N/A N/A Transfer Pricing adjustment - Ground No. 8 8 8 6 6 6 N/A Deficit Stock - Ground No. N/A N/A N/A N/A N/A N/A 6 Tax Credit 9 N/A N/A N/A N/A N/A N/A Interest u/s.234B - Ground No. 10 9 9 8 8 8 8 3. The general grounds and the ground on interest u/s.234B being consequential do not warrant a separate adjudication. Ground No.4 raised challenging the validity of the search is not pressed by the ld AR during the course of hearing and the same is dismissed as not pressed. 4. The assessee is an individual deriving income under the head business and profession and other sources. The assessee is in the business of trading in marble and granite slabs and runs the business in the name and style of M/s. Hindustan marble and granite. A search and seizure operation under section 132 of the income tax act 1961 (the act) was carried out in th....
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....not emanate from any material found in the course of search, we deem it appropriate to take up this issue for consideration for these five AYs together. 6. The details of return of income filed by the assessee for AY 2009-10 to 2013-14 and the status of regular assessment proceedings are as per the details given below: AY Date of filing of return of income (ROI) Status of assessment u/s.143(3) Due Date for issue of notice u/s. 143(2) Remarks 2009-10 29.09.2009 Completed 143(3) order dated 30.03.2013 2010-11 29.09.2009 Completed 143(3) order dated 13.03.2014 2011-12 30.09.2011 Completed 143(3) order dated 28.03.2014 2012-13 30.03.2013 30.09.2013 No notice u/s. 143(2) issued 2013-14 30.11.2013 30.09.2014 No notice u/s. 143(2) issued 7. The submission of the ld. AR was that the above addition made by the AO in all the aforesaid assessment years are not based on any incriminating material found in the course of search of the Assessee. It is submitted that the assessing office has made the impugned addition based on the show cause notice issued by DRI which ....
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....ent has already been issued by the AO and since no further proceedings by issue of notice u/s. 143(2) within the time contemplated by law was issued, those assessments become final and for AY 2009-10 to 2011-12 assessment is already completed u/s.143(3). Therefore it was contended that these assessments can be disturbed only if incriminating material is found in the course of search. He highlighted the fact that both the additions made with regard to unaccounted sales and disallowance u/s.10B has no relevance whatsoever to any material found in the course of search. The addition made towards unaccounted sales is based on the showcause notice issued by DRI and not based on any incriminating material found during the course of search. Since the addition in question have been made without any reference to any incriminating material found as a result of search, both the additions made by the AO deserves to be deleted. 8. The learned DR relied on the order of the CIT(A) and submitted that the scope of assessment proceedings u/s.153A of the Act is not limited to material found in the course of search and in this regard reiterated the ratio laid down by Hon'ble Karnataka High Court in ....
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....3(3) r.w.s.153A had adopted the assessed income from regular assessment as the starting point. 12. We heard the parties. The addition made towards transfer pricing adjustments contended here is not arising out of the orders appealed before the Tribunal. Therefore we dismiss this ground with a direction to the assessing officer give effect to the orders passed by the appellate authorities in the appeal proceedings relating to the original assessment. 13. For assessment year 2009-10 the assessee raised a ground (Ground 9) contending the tax credit of Rs.22,23,680 paid by the assessee during regular assessment. We in this regard direct the assessing officer to verify and allow the tax credit accordingly. 14. We will now take up ITA No.761 and 762/Bang/2021, relating to AY 2014-15 and 2015-16 for adjudication. In these assessment years similar addition relating unaccounted sales to the income declared in the return of income filed u/s.153A of the Act was made by the AO. These additions in these two AYs will not fall within the ambit of the ratio laid down by the Hon'ble Karnataka High Court in the case of M/S.Delhi International Airport Ltd. (supra). Therefore we will adjudica....
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....re the same has been taken into consideration by the assessing officer during the proceedings under section 153A which were pending at the time of receipt of show case notice. The material received from DRI according to the learned DR is a valid material which is incriminating nature. It is also the submission of the learned DR that the material received before the conclusion of the search can be used by the revenue for making additions in the proceedings under section 153A. 18. We have heard the rival submissions and produced the material on record. We notice that the assessing officer issued the notice under section 153A on 12.08.2015 which is the same day as that of the show cause notice issued by DRI. The assessing officer has tabulated the deviations in the marble slabs manufactured which are considered to be diverted into DTA according to the DRI to arrive at the assessable value of the marble slabs at Rs.180,56,39,456 and has apportioned the amount based on the turnover of the assessee for each of the assessment years. The assessing office then applied the profit ratio on the amount so apportioned to make the additions in each of the years. Though the search was conducted....
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....h books of account or other documents by any officer or authority by whom or which such books of account or other documents have been taken into custody under any other law for the time being in force, or (c) any assets represent either wholly or partly income or property which has not been, or would not have been, disclosed for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act by any person from whose possession or control such assets have been taken into custody by any officer or authority under any other law for the time being in force, then, the Principal Director General or Director General or Principal Director or Director or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may authorise any Additional Director, Additional Commissioner, Joint Director, Joint Commissioner, Assistant Director or Deputy Director, Assistant Commissioner or Deputy Commissioner or Income-tax Officer (hereafter in this section and in subsection (2) of section 278D referred to as the requisitioning officer) to require the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, to d....