9911796707
TMI Blog2012 (11) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... nature, warranting no adjudication. Before we proceed to decide the issues arising for determination and adjudication in the present appeal, it would be necessary to recount the background facts of the case. 3.1 Assessment u/s. 143(3) was in the first instance framed on 01/03/2000, followed by order u/s. 143(3) read with section 147 of the Act on 27/02/2002, assessing the income, albeit at the same figure of Rs.40.58 lakhs, i.e., by making an addition of Rs.40,15,485/- to the returned income of Rs.42,616/-. The impugned sum represented the peak credit in the assessee's savings bank account (# 5576) with State Bank of Bikaner and Jaipur, T. P. Nagar, Kanpur, i.e., as on 27/11/1996, added on account of being unexplained. In fact, a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s bank pass book were bogus and manipulated, so as to reflect availability of cash with her (Jai Rani Verma) and, consequently, with VR. So however, the addition could not be sustained in its hands. This is as there had been violation of the settled principles of natural justice inasmuch as the main persons involved in the alleged manipulation of the bank's books or in execution of the said Rs.transactions', i.e., the bank manager, Shri R. S. Saroj, and the cashier, were not examined. Their statements had not been recorded, and neither the assessee (i.e., VR) afforded an opportunity to cross-examine them. What was the procedure for deposit and withdrawal of cash in such huge amount as per the banking rules, it wondered ? Accordingly, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifically questioned by the A.O. regarding the status of the assessment proceedings in the case of the said concern (i.e., VR) vide order sheet entry dated 13/03/2006 (APB pages 18 - 20). Vide order sheet entry dated 22/03/2006, i.e., the date to which the proceedings stood adjourned on 13/03/2006, the A.O. recorded that the assessee filed the clarification through her said counsel, whereby, however, it could not confirm that any assessment proceedings in the case of VR were pending anywhere. Earlier, vide order sheet entry dated 07/03/2006, the assessee was specifically asked to substantiate her claim that the amount represented by the peak credit in her bank account was not her money but belonged to VR. The assessee was unable to furnish a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us; each side relying on the order of the authority below, as favourable to it. 5. We have heard the parties, and perused the material on record. 5.1 We, firstly, find no merit in the plea of the impugned assessment being valid, having been made to prevent it from becoming barred by time, as raised by learned D.R. before us. The provisions of section 153(3)(ii) are clear and specific, and applicable in the instant case. The assessment stood framed in the first instance vide order dated 27/02/2002, and which did not suffer from any limitation as to time. The impugned assessment is framed in consequence of the directions setting aside the said assessment, and would, therefore, be covered by the provision of section 153(3)(ii). In fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would only imply a substitution of those directions with that issued or that may be issued by the hon'ble high court. That is precisely what the ld. CIT(A) has sought to clarify in the concluding part of his order. Two, that would also not imply a disregard by the Revenue of the second limb or the second part of the tribunal's order dated 17/01/2005, i.e., that no addition, except on a protective basis - so as to safeguard its interest, can hold in the case of the assessee if it (the Revenue) is of the clear and unequivocal view that the amount under reference belongs to VR. The assessee, we find, has made only bald assertions, without bringing any material on record to support its contention/s. If the proceedings in the case of VR are pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p of Rs. 39 lacs and odd apart, the same possibly explain the cash found in search with VR? The assessee shall co-operate with the A.O. in the matter, who shall finalise the assessment in a time bound manner. That is to say, save or except where the appeal in the case of VR is pending before the Hon'ble High Court, within six months from the end of the month of the receipt of this order by the Revenue. We decide accordingly. 5.3 The Revenue has also challenged the appellate order on merits (Ground No. 1), even as there has been no decision by the learned CIT(A) in the matter; the same becoming infructuous in view of the finding of absence of jurisdiction. We find no merit in the Revenue's challenge to the same inasmuch as there has been n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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