TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 1892
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....in both years which is as under. "The Ld AO erred in carrying out the impugned assessment under Section 147 of the Income Tax Act instead of Section 153C of the Income Tax Act." 4. Regarding the issue involved in ground no. 4 and the additional ground, it was submitted by ld. AR of assessee that search was conducted u/s. 132 of IT Act and in the case of M/s. Anantha Refinery Pvt. Ltd. ("ARPL") on 03.12.2010 and the reopening is in the basis of material found in that search and therefore, in the facts of the present case, the provisions of section 153C are applicable and not of section 147 and therefore, reopening is bad in law. Reliance has been placed by him on the Tribunal order rendered in the case of Rajat Shubra Chatterji vs. ACIT in ITA No. 2430/Del/2015 and ITO vs. Shri Arun Kumar Kapoor as reported in 140 TTJ 0249. The ld. DR of revenue supported the orders of the authorities below. 5. I have considered the rival submissions. I find that as per the first Tribunal order rendered in the case of Rajat Shubra Chatterji vs. ACIT (supra), I find that the copy of this Tribunal order is not made available by the learned AR of the assessee but this Tribunal order is reported in....
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....pplicability of provisions of sections 147 and 148 of the Act. As we have already noted hereinabove that the documents were seized during the search under section 132 of the Act and the same was sent to the assessee's A.O. at Amritsar by the Officer at Delhi. In our view, the learned CIT(A) has correctly observed that only the provisions in which any assessment could be made against the assessee in the Income tax Act was section 153C read with section 153 of the Act. It is also apparent from the record that the Officer at Delhi has mentioned in his letter that the necessary action may be taken as per law under section 153C/148 of the Act. Hence, notice issued under section 148 of the Act and proceedings under section 147 of the Act by the AO are illegal and void ab initio. In view of the provisions of section 153C of the Act, section 147/148 stand ousted. In the instant case, the procedure laid down under section 153C has not been followed by the A.O. and, therefore, assessment has become invalid. We also observe that the CIT(A) was justified in following the ratio laid down by the Hon'ble Supreme Court in the case of Manish Maheshwari Vs. ACIT and another, reported in (200....
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....r 2010-11 is bad in law because the same should have been made by the AO u/s. 153C. Since in AY 2010 - 11, the assessment order itself is quashed, the issue on merit do not call for any adjudication. Accordingly the assessment order in Assessment Year 2010-11 is quashed. 7. In the result, the appeal of assessee for Assessment Year 2010-11 is allowed. 8. Now I take up the appeal for Assessment Year 2011-12. The grounds raised by the assessee are as under. "1. The Order of the learned CIT (A) is opposed to law, facts and circumstances of the case. 2. The Order is passed in haste, without providing sufficient and reasonable opportunity of being heard. 3.The Order is passed against the principle of natural justice and thus liable to be quashed. 4.The Ld. Assessing Officer erred in carrying out the impugned assessment under section 147 of the Income-tax Act and the Ld. CIT(A) erred in upholding the Order of the Ld. Assessing Officer. 5.The Ld. Assessing Officer erred in treating the capital balance of HUF as money lent by the Appellant in the ordinary course of business amounting to Rs. 19,00,000/- and further erred in treating the sum of Rs. 2,28,000/- as interest earne....
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.... of Rs. 19 Lacs is of opening capital balance in HUF account as on 31.03.2009 and remaining amounts are regarding incomes accrued over the years. In support of this contention, he submitted English version of the information as per scribbling on page no. 68 of seized material as per which the principle amount was Rs. 19 lakhs and the interest was Rs. 2.28 lakhs and Rs. 0.89 lakhs totaling Rs. 22.17 lakhs to which a further amount was added Rs. 6.30 lakhs being in respect of SVT profits and further interest of Rs. 1.53 lakhs was added making it Rs. 30 lakhs. It was also submitted that as per the capital account of HUF made available as per Annexure - 4 of the appeal memo/paper book, opening balance as on 01.04.2004 was Rs. 19,89,470/- which was considered at Rs. 19 lakhs by the assessee out of memory and to this, various income for Assessment Year 2005-06 to 2010-11 were added making a total of Rs. 30 Lacs. He submitted that the opening balance as well as closing balance of HUF capital is tallying with the rough estimate on the seized material and therefore, no addition is justified on the basis of this seized material. The ld. DR of revenue supported the orders of authorities below....
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....f assessee and therefore, this addition of Rs. 1,00,000/- is also deleted. Ground no. 8 is allowed. 13. Regarding ground no. 9 in respect of addition of Rs. 1,70,000/-, the seized material is available on page no. 29 of the paper book. Regarding this seized material, this was the contention of the assessee that this document does not belong to the assessee. Had this document been found in the possession of the assessee, the presumption would have worked against the assessee but in this case, the search is carried out in the premises of ARPL and not in the case of the assessee and therefore, this explanation cannot be brushed aside and it has to be seen that whether from the seized material, there is any indication that it belongs to the assessee. From the seized material available on page no. 29 of the paper book, it is seen that there is noting of a few amounts only without any name or date. As per the page 8 of the assessment order also, it comes out that the AO has invoked the provisions of section 292C without any concrete finding that this document has any relation with the assessee. I find that section 292C comes into operation, if the document in question is found in the po....