AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 1007
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....he Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), dated 29.12.2018. 2. Grounds of appeal raised by the Revenue are as follows: "(1) On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.74,06,250/- made by the Assessing Officer on account of unaccounted income derived from the partnership firm M/s. Platinum Developers by observing that the income including undisclosed income, if any, has to be brought to tax in the hands of the said firm only ignoring the fact that the share of profit derived from the partnership firm is exempt from taxation in the case of the partners only when the partnership firm has paid....
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....acts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.74,06,250/- made by the Assessing Officer on account of unaccounted income earned from the partnership firm M/s. Platinum Developers by considering the submission that the said partnership firm has filed an application for settlement before the Hon'ble Settlement Commission, Mumbai in which the undisclosed income, as apparent from the seized material, has been offered for taxation in the hands of the firm, without appreciating the fact that the Hon'ble Settlement Commission has not yet passed any final order in the case of the partnership firm and the matter is still pending for consideration. (5) In addition to and ....
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....officer may be restored to the above extent. (8) The assessee craves leave to add, alter, amend and/or withdraw any ground(s) of appeal either before or during the course of hearing of the appeal." 3. Succinct facts are that assessee is engaged in the Proprietary business of trading of embroidery machines in the name of Pearl Overseas and also partner in the firm of M/s Akshar Associates, Hariom Corporation and Platinum Developers. According to the assessing officer, during the course of search in the premises of K-Star Group at Katargam, Surat some incriminating documents marked as Annexure A-485 page Nos.76-79 were found and seized. They were relating to Project Himgiri developed by the assessee and three other partners namely....
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.... before us. 5. The Learned Departmental Representative (Ld. DR) for the Revenue argued that Page no. 79 (seized by the Department) reveals that an amount of Rs.2,96,25,000/- has been divided between the partners up to 15.04.2016. During the assessment stage, the assessee was requested to produce relevant ledger/books of account showing the transaction, however assessee did not produce them before assessing officer. As per page no.79, a 'partner divided' amount of Rs.2,96,25,000/- is appearing on this page. The word 'partner divided' as mentioned in the document on page no.79 means the profit from the project which needs to be divided amongst the partners of the firm. In normal course the share of profit is exempt from tax when the taxes ....
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.... 69A of the Act alleging unaccounted income of the assessee, without appreciating that the said project viz. 'Himgiri' as carried out by M/s Platinum Developers, a partnership firm, is duly covered in the petition filed by the said firm viz. M/s Platinum Developers before the Hon'ble Settlement Commission u/s 245C of the Act. Before the Settlement Commission M/s Platinum Developers has disclosed additional income taking into consideration the seized records on the basis of which the assessing officer has made the alleged addition in case of the assessee. As the seized papers under reference belongs to M/s Platinum Developers and income as per the same has been declared before the Settlement Commission on which due tax plus inter....