TaxTMI 
TaxTMI 
2024 (11) TMI 1026
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.... recorded by the Assessing Officer that certain papers/documents belonging to the assessee were found and seized in the abovesaid search operation conducted in the case of Harvansh Chawla on 07.04.2016. Based on the above fact on record, the Assessing Officer proceeded to issue notice under section 153C of the Income-tax Act, 1961 (for short 'the Act') and proceeded to reopen the assessment for six years from the search assessment year 2017-18 i.e. from AY 2011-12 to 20.06.2017. He submitted that as per the provisions of section 153C of the Act, the searched assessment year should have been from the date of recording of satisfaction in the case of the assessee. He submitted that the satisfaction note was recorded by the jurisdictional Assessing Officer of the assessee on 18.01.2021. Accordingly, the search year for the case of the assessee should have been AY 2021-22. Accordingly, the assessment year should have been reopened from AY 2015-16 to 2020-21. Therefore, the AYs 2011-12 to 2014-15 is beyond jurisdiction. In this regard, he submitted that the assessee has raised ground no.3 before the ld. CIT (A) and the ld. CIT (A) on the legal issue dismissed the appeal by observing as u....
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....was issued online through ITBA system on 19.01.2021. In response, assessee had filed return of income on 01.02.2021 showing income of Rs. 25,45,846/-. The notices u/s 143(2) and 142(1) were issued and served on the assessee. In response, ld. AR of the assessee attended and submitted the relevant information as called for. The Assessing Officer observed in the assessment order that based on the information available on record, it was noticed that assessee has taken a bank limit of Rs. 20 crores @ 12.3% interest per annum and the repayment was made on monthly basis, the assessee was asked to furnish copy of loan account, etc. Further the assessee has taken loan of Rs. 65.50 crores against the mortgage property at Gurgaon and the assessee was asked to submit the details of loan taken etc. Further it was found that in the Valuation Report dated 08.04.20210 submitted by K.R. Tawlar, Chartered Engineer, Government Approved Valuer, commercial property of K.R. Chawla Consulting Pvt. Ltd., Gurgaon, monthly rental of the said property was reported at Rs. 1,90,53,692/-. On analysing the ITR, it was noticed that the assessee has not shown any rental income from the said property during the rel....
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....o the facts and circumstances of the case, and in law addition of Rs. 7,56,21,407/- made in the order passed u/s 153C /143(3) of the Income Tax Act on the basis of valuation report dated 08/04/2010 on account of alleged rental income from property at Sector -44, Gurgaon which have not been confronted is arbitrary, against law and facts on record 3 That having regard to the facts and circumstances of the case, and in law assessment proceedings initiated u/ 153C in this case is bad-in law, without jurisdiction and barred by limitation and accordingly the assessment proceedings initiated and assessment order passed u/s 153C / 143(3) are liable to be quashed. 3.1 That having regard to the facts and circumstances of the case, and in law addition of Rs. 7,56,21,407/- in the order passed u/s 153C in the absence of incriminating material and in respect of unabated assessment is bad in law and is without jurisdiction and hence liable to be quashed. 4 That having regard to the facts and circumstances of the case, and in law the ld. CIT (A) ignored the fact that rental income from let out of property at Sector -44, Gurgaon were shown in the return of income as per the lease deed entered....
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....l'. Valuation report so seized and prepared by government valuer was a mere estimation and a projection, that property of the assessee might fetch Rs. 1.90 crore rent monthly and nothing more. Secondly, for the sake of argument even if it is held to be 'incriminating material' found during the course of search, than also, it does not pertain to years in question i.e. A Y 2014-15 to 2016-2017, but pertains to A Y 2011-12. It is reiterated, that incriminating material so found during the course of search should be year specific so as to warrant addition in case of completed/unabated assessments as held in the following judicial pronouncements a) CIT vs. Sinhgad Technical Education Society (SC) reported in 397 ITR 344 (Page 59- 66 Assessee PB) b) Pr. CIT vs. Index Securities (P) Ltd. (Del) reported in 86 taxmann.com 84. 9.2 In view of the above, it is prayed that the addition so made by AO for A Y 2014-15 to 2016-2017 and sustained by CIT(A) be deleted as such and the appeals of the assessee company be allowed." 13. On the other hand, ld. DR for the Revenue submitted that assessee has not utilised various opportunities granted by the ld. CIT (A) and ld. CIT (A) ha....