2015 (11) TMI 1877

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.... gifts from 10% to 7% of the gifts received without appreciating the detailed facts as mentioned in the assessment order and without assigning any logical reasons. 3. That the order of the Ld. CIT(A) being erroneous in law and on facts which needs to be vacated and the order of the A.O. be restored." 3. Learned D. R. of the Revenue supported the assessment order whereas it is submitted by Learned A. R. of the assessee that relief was allowed by learned CIT(A) on this basis that the addition of Rs. 99 lac and Rs. 4.95 lac cannot be made in the assessment framed u/s 153A of the Act because in the assessee's own case, it was held by Hon'ble jurisdictional High Court that neither the original assessment framed u/s 143(3) nor the appeal before the Tribunal in this connection could abate and therefore, as a consequence, all the additions/disallowances made in the assessment order framed u/s 143(3) would survive and have to be decided in the appeal in the proceedings u/s 143(3) of the Act. 4. We have considered the rival submissions and gone through the orders of the authorities below. We find force in the submissions of the learned AR of the assessee. First, we rep....

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....second assessment in pursuance thereof. 2. BECAUSE view which is contrary to the pleading as above, as has been taken by "CIT(A)" is wholly erroneous and illegal too. 8. It was submitted by Learned A. R. of the assessee that these grounds are not pressed. Accordingly, these grounds are rejected as not pressed. 9. Ground No. 3 & 4 are inter-connected, which read as under: 3. BECAUSE on a due consideration of the facts and circumstances of the case, particularly that -  (a) the appellant had duly filed the "return", by stating that the "return" filed earlier be treated to be the "return" filed in compliance with the notice under section 153A; (b) the "return" filed in the said manner, even if, the same was belated, constituted "return filed" in compliance with the notice under section 153A;  (c) the "return" so filed by the appellant, had duly been taken cognizance of by the Assessing Officer; (d) after the "return" had been filed in the aforesaid manner, the appellant was not served with any questionnaire nor any notice under section 143(2); the "CIT(A)" should have held that ACIT had lost jurisdiction to....

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.... the case of Rajeev Sharma (supra), the decision of Hon'ble Allahabad High Court is in favour of the assessee but the same is in the context of section 147 of the Act. We have already considered this judgment in a case and have decided the issue against the assessee by following the judgment of Hon'ble Delhi High Court and the judgment of Hon'ble Allahabad High Court in the case of Rajeev Sharma was not followed because this judgment is in the context of section 148 assessment and not assessment u/s 153A. No other judgment has been brought to our notice by Learned A. R. of the assessee which is in the favour of the assessee and is in the context of assessment u/s 153A of the Act. Therefore, in the present case also, we follow the judgment of Hon'ble Delhi High Court and decide the issue against the assessee. Accordingly, ground No. 3 & 4 of the assessee are rejected. 13. Ground No. 5 is as under: 5. BECAUSE in any case, no incriminating material having been found during the course of search & seizure action under section 132(1) that took place on 17th October, 2006, as per particulars given herein below : Sl. No. Places subjected to search Warra....

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.....2001 which is the date of endorsement on "IMD" and delivered by State Bank of India. 24,50,918 (b) Undisclosed expenditure as worked out at the rate of 7% of above. 1,71,564     26,22,482   to the income of the appellant, on the ground that identity of the donor as also the circumstances in which gift have been made, remained unproved. 7. BECAUSE the gift of "IMD" had been executed by the donor, through State Bank of India, a nominated agency under the scheme formulated by the Government of India and the issues raised by the Authorities below, were wholly extraneous to the said scheme. 8. BECAUSE the appellant enjoyed immunity from all such enquiries as have been referred to by the authorities below and the addition made/ sustained by them being based on a wholly illegal premise, is not sustainable. 9. BECAUSE the case laws as have been referred to and relied upon by the "CIT(A)" in upholding the addition for sums aggregating Rs. 26,22,482/- are not applicable on the facts of the present case and accordingly the view taken by him is wholly vitiated. 18. It was submitted by Learned A. R. of the assessee t....

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....consideration and in the year under consideration, namely, in the asst. yr. 2004-05 only the maturity amounts of the bond were received. 6. Thus, so far as the year under consideration is concerned, the source and nature of deposit are fully established and the query with regard to the investment made in purchasing the bonds could be made only in the financial year 1998-99 relevant to the asst. yr. 1999-2000 and not in the year under consideration. 7. After the amendment in Section 5(iiie) of the GT Act by the Finance (No.2) Act of 1991, gift could be made to the person other than relatives also. The omission of the word 'relative' in the section shows that the amendment was made to promote the gift by NRI to the persons other than relatives to encourage inflow of foreign money in India through gifts. 8. Sri K.C. Kapadia, by confirmatory letter dt. 8th Feb., 2006 duly notarized by Notary Public of New Jersey, has confirmed the gift of four such bonds. The letters written by the assessing authority were returned unserved with the remark 'Not deliverable as addressed unable to forward' does not mean that Sri K.C. Kapadia, was not traceable a....