TaxTMI 
TaxTMI 
2024 (10) TMI 77
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....ting the faceless assessing officer to pass a fresh Assessment Order. 3. The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal." 3. The brief facts of the case are that the assessee filed return of income for A.Y. 2016-17 on 05.08.2016, declaring total income of Rs. 69,53,000/-. No scrutiny assessment under Section 143(3) of the Act was made in this case. The re-assessment proceedings, under Section 147 of the Act r.w.s. 144B of the Act was completed on 29.03.2022, by accepting the returned income. Subsequently, on perusal of records, the PCIT observed that a search under Section 132 of the Act was carried out on 11.04.2017 in the case of Navratna Group. The Navratna Group is a premier real estate group of Gujarat and is engaged in development of various real estate projects. During the course of search, various incriminating documents were found and seized from the premises of Shri Murlidhar M. Trivedi, who is a shareholder of Navratna Infrastructure Ltd.. Mr. Murlidhar Trivedi is also the key person involved in carrying sale of plots in "Kalhaar" scheme launched by the....
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....er passed by the PCIT, holding that the assessment order to be erroneous and prejudicial to the interest of the Revenue. Firstly, the Counsel for the assessee submitted before us that proceedings under Section 147 of the Act had been initiated to examine the issue of on-money payment of Rs. 55,00,000/- to Navratna Organisers and Developers Pvt. Ltd. Therefore, the allegation of the PCIT is per se erroneous that the Assessing Officer failed to make enquiries on this aspect, since the very purpose of initiating re-assessment proceedings under Section 147 of the Act was to analyse the on-money payment of Rs. 55,00,000/- towards payment made to Navratna Developers. Secondly, the Counsel for the assessee drew our attention to notice dated 03.11.2021, in which the Assessing Officer made a specific enquiry regarding the payment of on-money of an amount of Rs. 55,00,000/- paid by the assessee towards purchase of immovable property from Navratna Organisers and Developers Pvt. Ltd. Thereafter, the Counsel for the assessee drew our attention to reply dated 30.12.2021 in which the assessee objected to initiation of proceedings under Section 147 of the Act. In the said reply, the....
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....sel for the assessee drew our attention to Page 177 of the Paper Book to letter dated 28.03.2022, in which the assessee further made a submission that the excel sheet found during the course of search pertained to the period 13.11.2008 to 15.03.2013, which is not relevant to the impugned year under consideration. Therefore, no reliance can be placed on such excel sheet, discovered during the course of search to come to the conclusion / to hold that the assessee had paid on-money towards purchase of immovable property. Accordingly, in light of the above notices issued by the Assessing Officer from time to time and the assessee's reply to the same, wherein the assessee had submitted that there is no incriminating material or basis to hold that the assessee had made cash on-money towards purchase of immovable property, it is evident that the issue was analyzed in detailed during the course of assessment proceedings and that there is no lack of enquiry on the part of the Assessing Officer. Accordingly, looking into the instant facts, the order passed by Ld. PCIT is liable to be set-aside. 6. In response, Ld. D.R. drew our attention to para 5.4 of the 263 order, wherein the Ld. PCIT ....
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.... Nanubhai Majithia in Tax Appeal No. 20 of 2024, on similar facts, the Gujarat High Court, while ruling in favour of the assessee observed as under: "1. Having noted the findings of the facts returned by the Commissioner of Income Tax (Appeals) ('CITA', in brief) and the Income Tax Appellate Tribunal ('ITAT', herein after), we may record that, essentially, the proceedings under Section 153C of the Income Tax Act, 1961 (in short, 'IT Act of 1961') were initiated against the Respondent- assessee on the basis of an excel sheet found from the computer of a person, associated with the Company, namely Navratna Organizers and Developers Private Limited (in short as 'the Developer'), in the premises of whom the search was conducted. 2. The excel sheet, according to the learned Counsel for the Revenue, contained the details of payment made by the assessee to the developer, with respect to which tax had been paid by the developer before the Settlement Commissioner. The findings returned by the CITA and ITAT on the issue is sought to be assailed on the ground that the payment of tax by the developer, in whose premises search was conducted, before the Settlement Commissi....