2012 (3) TMI 547 - AT - Income Tax

Assessment u/s 144 r.w.s. 158BD for the block period comprising of assessment years - incriminating materials were seized showing various payments to the owners of the land were utilised

Summary

Issues involved:
1. Appeal against order of CIT(A) for block period assessment years 1996-97 to 1999-2000.
2. Appeal against order of CIT(A) for block period assessment years 1991-92 to 2000-01.
3. Assessment of undisclosed income as long term capital gains.
4. Validity of assessment in absence of known whereabouts of the individual.
5. Adequate opportunity to the assessee during the appeal process.
6. Ownership and possession of the disputed land.
7. Application of Section 2(47) of the IT Act.
8. Legal title of the individual to the inherited land.

Detailed Analysis:

1. The appeals were filed against the orders of CIT(A) for block period assessments. The case involved search and seizure operations under section 132 of the IT Act, 1961 at the residential premises of an individual engaged in real estate business. The Assessing Officer determined undisclosed income as long term capital gains based on seized documents related to the transfer of land.

2. The CIT(A) concluded that the assessee had lawful rights over the land, and the sale deed reflecting the transfer of the property had taken place. The FMV of the property was adopted for cost of acquisition. The CIT(A) upheld the findings of the Assessing Officer regarding undisclosed income for the block period.

3. The assessee raised objections regarding the validity of assessment in the absence of the individual, adequacy of opportunity during appeal, ownership of the land, application of Section 2(47) of the IT Act, and legal title to the inherited land.

4. The Tribunal set aside the matter to the file of the Assessing Officer for re-examination in light of the decision in a related case. The issue of ownership and possession of the land was also remanded for re-examination.

5. The appeals were partly allowed for statistical purposes, and the matter was referred back to the Assessing Officer for re-examination and redetermination in accordance with the law.

This detailed analysis covers the key issues involved in the judgment, the arguments presented, and the final decision of the Tribunal.