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2024 (3) TMI 200
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.... period prescribed under the Act. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the assessment order passed by the AO is barred by limitation having been passed beyond the statutory period prescribed in the Act and hence liable to be quashed. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the assessment order passed by the learned AO is bad in law as the same has been passed without application of his own mind. 5. On the facts and circumstances of the case, the learned CIT (A) has grossly erred both on facts and in law in rejecting the contention of the assessee that the order has been passed by the AO without affording adequate opportunity of being heard to the assessee. 6. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of the AO, despite the fact that the additions made by the AO are unsustainable in law in the absence of any incriminating material belonging to the a....
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....been made for the benefit of M/s Travancore Management Resources Pvt. Ltd and not for the benefit of the employee i.e., the assessee and accordingly, provisions of section 17(2)(iv) of the Income Tax Act are not attracted. 11. That the appellant craves leave to add, amend or alter any of the grounds of appeal." 2. Briefly stated facts are that a search and seizure operation u/s 132 of the Income-tax Act, 1961 (hereinafter referred to as the "Act") was conducted on Shri Mon Mohan Kohli group of assessees on 11.02.2014. The assessee was also covered in search operation. Thereafter, notice u/s 143(2) of the Act was issued and duly served upon the assessee. The AO while framing the assessment made addition of Rs. 11,77,102/- being the amount deposited in the foreign bank account. Further, the AO made addition on account of perquisite of Rs. 5,17,508/-, the amount paid by M/s Travancore Management Resources Pvt. Ltd. Thus, against the returned income of Rs. 27,80,310/- the AO assessed income at Rs. 44,74,920/-. Aggrieved against this the assessee preferred appeal before learned CIT(A), who sustained the addition. Now the assessee is in appeal before this Tribunal. 3. Shri....
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.... TR division of CBDT. 9. The assessee filed a rejoinder to the remand report (PB Pg. 57-58) vide letter dated 23.02.2018 wherein it was submitted that the assessee has not received the documents forming basis of additions of foreign bank account. Also, information in the remand report is incomplete and incorrect. The assessee also submitted that the assessee had made complaint to Enforcement Directorate on 21.05.2012 much before conducting of search and seizure on 11.02.2014. The assessee also submitted that she was made cosignatory with no authority to operate or withdraw any funds. However in the remand report her statement was twisted and amended as "she was made cosignatory with an authority to operate or withdraw any funds." Also, the appraisal note enclosed to remand report was incomplete. 10. Further, another submission dated 25.09.2018 (PB pg. 59-62) was made by the assessee stating that There was a contradiction in the statements of Ld. AO. On one hand, Ld. AO said that it was during search operations that the information regarding foreign bank account was revealed and on the other hand it is said that communication in this regard was received fr....
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....ubmitted that she had been disowned from being beneficiary in all assets of her husband as per his will. 14. However, Ld. CIT(A) ignored the detailed submissions and explanations furnished by the assessee and confirmed the addition of Rs. 11,77,102/- made by the AO. 15. Aggrieved by the order of Ld. CIT(A), the assessee has filed an appeal before Hon'ble Tribunal. 16. It is also pertinent to note that the information regarding undisclosed foreign assets came to the notice of the AO under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in the month of October, 2017 and subsequently proceedings were initiated under the said Act and an order u/s 10(3) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was passed on 25.03.2022 for AY 2018-19 wherein it was held that "the various foreign assets forming the basis of issue of the notice u/s 10(1) dated 27.06.2018 in the case of the assessee are actually not held by the assessee as the beneficial owner but are apparently held by Sh. Mon Mohan Kohli as the beneficial owner whose case proceedings are ongoing u/s 10(1)..." It was als....
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....e deceased. MR. VIKRAM BODHRAJ TANNA, M/S CAPSULATION SERVICES LTD. VERSUS ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-20, MUMBAI AND DCIT CC 3 (2), CENTRAL RANGE-3, MUMBAI VERSUS MR. VIKRAM BODHRAJ TANNA, M/S CAPSULATION SERVICES LTD.- 2022 (1) TMI 75-ITAT MUMBAI Dated.- November 25, 2021 8. Considered the rival submissions and material placed on record. We observe from the record that a search and seizure operation under section 132 (1) of the Act was conducted on the assessee and his related entities. Accordingly notice under section 153A of the Act was issued and served on the assessee and in response assessee filed his return of income. We observe from the record that the addition was made by the assessing officer during this assessment year pertains to a bank account in HSBC, Geneva. The relevant information on the bank account was not found during search proceedings nor found in the possession of the assessee. However, during search proceedings, the assessee was confronted with the Base Note which the Income Tax Department obtained under exchange of information between French government and Indian government under the provisions of DTAA. The investigat....
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....und during search alone can be considered for making addition u/s 153A of the Act. Therefore, we are inclined to accept the submissions of the Ld. AR and accordingly the ground No. 1 raised by the assessee is allowed. COMMISSIONER OF INCOME TAX (CENTRAL) -III VERSUS KABUL CHAWLA, 2015 (9) TMI SO- DELHI HIGH COURT-Dated.- August 28, 2015 37 vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. Conclusion 38. The present appeals concem AYS, 2002-03, 2005-06 and 2006-07. On the date of the search the said assessments already stood completed. Since no incriminating material was unearthed during the search, no additions could have been made to the income already assessed. 19. Thus, in light of the above facts, submissions and explanations of the assessee, the addition amounting to Rs. 11,77,102/- made by Ld. A....
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....re personal expenses of the appellant and upheld the addition of Rs. 5, 17,508/- u/s 17)(2)(iv) of the Act. Made by the AO. 5. Aggrieved by the order of CIT(A), assessee has filed an appeal to the Hon'ble Tribunal. 6. It is an undisputed fact that: The case of the company which has paid the credit card bills i.e. M/s Travancore Management Resources Pvt. Ltd. has also been accepted by the same jurisdictional office. Expenses have not been questioned by the AO in the case of M/s Travancore Management Resources Pvt. Ltd. No objection or observations have been pointed out in the ledger account of credit card in the books of the M/s Travancore Management Resources Pvt. Ltd. 7. Thus it is clear that the expenses have been incurred for the purposes of business only. Though the credit card was in the name of the assessee but the expenses which were paid for by the company were incurred in the interest of the company only. A summary of nature of expenses incurred and borne by the company is appended below: AEBC Card No. 376916899906005 55024.57 Boarding & Lodging 29500.3 Business Promotion 25524.27 AEBC Card No. ....
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....ellate Assistant Commissioner came to the conclusion that, unless the Income- tax Officer on the basis of material before him is able to come to the conclusion that the assessee had really made profits in the transaction it is not permissible for him to add back to the assessee's return any fictional income. In our opinion, that conclusion is fully in accordance with law." MADRAS HIGH COURT in the case of COMMISSIONER OF INCOME-TAX VERSUS K. BHUVANENDRAN AND OTHER, [2008] 303 ITR 235 (Mad) "6. The reasoning of the Tribunal is based on valid materials and evidence. In the present cases, the Revenue failed to establish that there is actually on-money passed on to the seller and also there is no evidence to show that there is understatement of sale consideration in the document. If the Revenue is able to produce evidence to show that there is understatement of sale consideration in the document, the Revenue may be right in inferring that on-money has been passed on to the seller. It would be otherwise harsh and inequitable to tax the assessee on income which has neither arisen to him nor is received by him. It amounts to tax on notional or fictional income. Hence....
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....ction with the disputed foreign bank account. 6.2 Taking into account the submissions made on behalf of the parties on the issue in question we find that there is no dispute that the assessee was co-signatory along with her husband of the foreign bank account maintained with Standard Chartered Trust (Guernsey). However, the stand of the assessee from the very beginning is that she was not having any knowledge about the opening of the account and the sum credited into such account and the account was operated and managed by the husband of the assessee; that there was dispute between wife and husband and the assessee was disowned from being beneficiary in all assets of her husband. It is also the stand of the assessee that she had never made any transaction into such account and she had made complaint to Enforcement Directorate on 21.05.2012 much before conducting of search and seizure on 11.02.2014 regarding no connection with the disputed foreign bank account. Therefore, to verify the veracity of assessee's claim, in order to subserve the ends of natural justice and to be fair to both the parties, we restore this issue to the file of the AO for decision afresh after affording re....