TaxTMI 
TaxTMI 
2017 (1) TMI 1831
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....sed under section 263 of the Income Tax Act, 1961 ["Act" in short] are erroneous and unsustainable. 2. Brief facts of the case are that the assessee is an individual and Proprietrix of M/s. DMC Textiles. She is wife of Shri Madanlal D. Chawla. A search under section 132 of the Act was conducted on 10.01.2012 at the residential premises of Shri Madanlal D. Chawla. During the course of search in the Bank Locker No. 153 of the assessee and his husband at State Bank of Travancore, Rajaji Road, Salem, gold/diamond jewellery found and seized. The assessee in her reply to the questionnaire issued stated that a detailed note explaining jewellery found during search, along with evidences for wealth tax assessment is being field by her husband Shr....
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....tered into between Smt. L. Ammini and Shri Sanjay M. Chawla (GPA of Smt. Rekha M. Chawla), as vendors on the one hand and Smt. Rathinammal, as vendee on the other hand, signed on 18.3.2011, for sale of plots in Tharamangalam Village measuring 13136 sq.ft, for a consideration of Rs. 1,05,09,000/- @ Rs. 800/- per sq.ft. As per the information gathered during the scrutiny assessment, Shri Sanjay M. Chawla purchased the property located in Tharamangalam Village, Salem, jointly with Smt. L. Ammini, wife of Shri A. Loganathan of Salem, during May 2008. Further, Smt. Rekha Chawla, the assessee, represented by her POA and son Shri Sanjay M. Chawla also purchased an adjacent land jointly with Smt. L. Ammini during December, 2008. All these lands wer....
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....plying such rate of Rs. 640/- per sq.ft., the sale consideration received from sale of land of 4151.75 sq.ft., in that locality, pertaining to her 50% share in that property, was determined at Rs. 26,57,120/- in the case of Smt. L. Amminiammal, after deducting the cost of acquisition from the same, the resultant profit from such sale was taxed, treating the same as income under the head from business in the assessment order passed in the case of Smt. L. Ammini, for the assessment year 2012-13, vide order dated 14.3.2014, under section 143(3) r.w.s. 153C of the Act. 3.2 However, as the said seized document and such information contained therein regarding the selling price of land in that Tharamangalam Village, has not been considered by t....
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....ssessee has submitted that the ld. PCIT has erred in invoking the provisions of section 263 of the Act and directed the Assessing Officer to redo the assessment. 5. On the other hand, the ld. DR has submitted that there is a clear negligence of the Assessing Officer ignoring the material document found and seized, which become the base for invoking the provisions of section 263 of the Act. By strongly supporting the order passed by the ld. PCIT, the ld. DR has pleaded that the order passed under section 263 of the Act should be upheld. 6. We have heard both sides, perused the materials available on record and gone through the orders of authorities below. The point at issue is whether the assessment order passed under section 143(3) r.....
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....on gathered during the scrutiny assessment, Shri Sanjay M. Chawla purchased the property located in Tharamangalam Village, Salem, jointly with Smt. L. Ammini, wife of Shri A. Loganathan of Salem, during May 2008. Further, Smt. Rekha Chawla, the assessee, represented by her POA and son Shri Sanjay M. Chawla also purchased an adjacent land jointly with Smt. L. Ammini during December, 2008. All these lands were jointly developed by the co-owners i.e., Shri Sanjay M. Chawla, Smt. Rekha Chawla and Smt. L. Ammini and converted into 77 plots of various sizes. These plots were sold during the previous years, relevant to assessment years 2010-11, 2011-12 & 2012-13 and the sale consideration from the sale was shared between Smt. L. Amminiammal at 50%....
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....ould have been made;" 6.2 As relied on by the ld. Counsel for the assessee in the case of Shri V.R. Venkatachalam v. ACIT (supra), it was a fact that the Assessing Officer proposed that the assessment completed under section 153A of the Act be revised under section 263 of the Act as the Assessing Officer could not examine the issues due to paucity of time. After invoking of jurisdiction under section 263 of the Act, the ld. CIT directed the Assessing Officer to pass fresh assessment order which was completed under section 153A r.w.s. 143(3) of the Act though there was no incriminating materials found during the course of search under section 132 of the Act. Therefore, after considering the entire facts of the case, and when the ld. CIT h....