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TMI Blog2013 (7) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... that no addition can be for on money payment in respect of year under consideration u/s. 153A of the Act just on the ground that no evidence in regard of on money payment for sale of plot in year under consideration was found, despite the fact that evidences of on money were found, seized & declared by assessee for same project although for other years? (ii) Whether ITAT was justified in stating that decision of Hon'ble Andra Pradesh High Court in the case of Mr.Gopal Lal Bhadruka Vs. DCIT, was not applicable in this case, just because evidence found was of immediate succeeding year? (iii) Whether ITAT was justified in interpreting decision of Hon'ble Andra Pradesh High Court in case of Mr.Gopal Lal Bhadruka Vs. DCIT, in a way that AO ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pertaining to the land selling transactions in the A.Y. 2006-07 and 2007-08, the Assessing Officer reopened assessment with respect to A.Y. 2005-06 with respect to sale of plots of land admeasuring 6426.01 sold in A.Y. 2005-06. As the Assessing Officer was of the opinion that in the return of A.Y.2005-06, the assessee had not shown any profit as done in A.Y. 2006-07 and 2007-08, a show cause notice was issued and served upon the assessee to show cause why same ratio and ratio of profit should not be applied to the sales which took place in the year 2005-06. That the Assessing Officer applying same ratio and ratio modus-operandi, total undisclosed on sale on plots of land admeasuring 6426.01 sq.mtrs. sold during the year under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of six preceding years. It is submitted that therefore, considering section 153A and 153C of the Act, the Assessing Officer was justified in reopening the assessment with respect to A.Y. 2005-06 and considering the same ratio and ratio modusoperandi with respect to A.Y.2006-07 and 2007-08 rightly added undisclosed income on the sale of plots of land admeasuring 6426.10 sq.mtrs. sold during the year under consideration being extra sale profits received on sale of plots of land at the rate of Rs.575/- per sq.mtrs. as done in the A.Y. 2006-07 and 2007-08. 3.01. Mr.Pranav G. Desai, learned counsel appearing on behalf of the revenue has further submitted that the tribunal has not properly appreciated the decision of Andhra Pradesh High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which took place in the year 2006-07 and the order passed by the CIT(A) is rightly confirmed by the Tribunal. 4.01. While confirming the order passed by the CIT(A), the ITA(T) has observed as under :- "...... In the present case, although the project is same for which some plots of land were sold in the present year but evidence found regarding the receipt of the non-money is in respect of subsequent year i.e. 2006-07 although, the project is same. Now the question is whether the receipt of on-money is subsequent year can be a valid basis to hold that on-money was also received in the present year in absence of any incriminating materials having been found in the course of search and also in absence of any corroborating material have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is true and it cannot be disputed that considering section 153A of the Act, Assessing Officer can reopen and/or reassess the return with respect to six preceding years. However, there must be some incriminating material available with the assessing officer with respect to the sale transactions in the particular assessment year such as in the present case 2005-2006. Under the circumstances, on facts, the decision of the Andhra Pradesh High Court shall not be applicable to the facts of the present case. 5.00. In view of the above and the reasoning given by the tribunal reproduced hereinabove, we do not see any reason to interfere with the impugned judgement and order passed by the ITAT as no substantial question of law much less substant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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