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TMI Blog2017 (1) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... Advocate For The Respondent : Ms. C.M.S. Vijayalakshmi, CIT-DR ORDER PER DUVVURU RL REDDY, JUDICIAL MEMBER: These three appeals filed by the assessee are directed against the different orders of the ld. Principal Commissioner of Income Tax, Chennai all dated 29.03.2016 relevant to the assessment years 2010-11, 2011-12 and 2012-13 challenging the orders passed under section 263 of the Income Tax Act, 1961 [ Act in short] are erroneous and unsustainable. 2. Brief facts of the case are that the assessee is an individual and Proprietor of M/s. Palm Springs. He is son of Shri Madanlal D. Chawla and Smt. Rekha Chawla. A search under section 132 of the Act was conducted on 10.01.2012 at the business premises at M/s. Palm Springs, Capital Towers, 96/4, 3rd Floor, Near PRN Hospital, Peramanur Main Road, Salem. Based on the search conducted notice under section 153A of the Act was issued to the assessee for the assessment years 2006-07 to 2011-12 and notice under section 142(1) of the Act was also issued for the assessment year 2012-13. In response to the notices, the assessee has filed the returns of income as under: A.Y. Return f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act on 10.01.2012, in various premises of the assessee group i.e., assessee s business premises, residential premises of assessee s father Shri Madanlal Chawla, and other members of the group, a document at page Nos. 82 to 86 of Annexure ANN/PS/SS/B D/S-3, dated 10.1.2012 was found and seized. This is an agreement of sale entered into between Smt L. Ammini and Shri Sanjay M Chawla (GPA of Smt. Rekha M Chawla), as vendors on the one hand and Smt Rathinammal, as vendee on the other hand, signed on 18.3.2011, for sale of plots in Tharamangalam Village measuring 13136 sq.ft, for a consideration of ₹.1,05,09,000/- @ ₹.800/- per sq. ft. As per the information gathered during the scrutiny assessment, Shri Sanjay M Chawla purchased the property located in Tharamangalam Village, Salem, jointly with Smt. L. Ammini, wife of Shri A. Loganathan of Salem, during May 2008. Further, Smt. Rekha Chawla, the assessee, represented by her POA and son Shri Sanjay M Chawla also purchased an adjacent land jointly with Smt. L. Ammini during December, 2008. All these lands were jointly developed by the co-owners i.e., Shri Sanjay M Chawla, Smt. Rekha Chawla and Smt. L Ammini and converted into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act was found to be erroneous and prejudicial to the interest of Revenue and accordingly, he issued notice under section 263 of the Act asking the assessee to explain as to why an amount of ₹.12,83,840/- should not be assessed in his hands, arising from sale consideration received from that joint venture in Tharamangalam Village, treating the same as income under the head 'profits gains of business' for the A.Y 2010-11. 3.3 In response to the said notice, issued under section 263 of the Act, the assessee has filed a combined reply for the assessment years 2010-11, 2011-12 2012-13, duly signed by Shri K. Meenatchi Sundaram, FCA, Ld. AR of the assessee, received on 20.5.2015 by the ld. PCIT. After considering the submissions of the assessee as well as the provisions of clause (a) of Explanation 2 to section 263 of the Act, the ld. PCIT has directed the Assessing Officer to redo the assessment for the assessment years under consideration. 4. On being aggrieved, the assessee is in appeal before the Tribunal for all the assessment years. By relying on the decision of the Tribunal in the case Shri V.R. Venkatachalam v. ACIT in I.T.A. Nos. 2634 to 2639/Mds/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and her POA also purchased an adjacent land again jointly with Smt. L. Ammini during December, 2008. All these lands were jointly developed by the co-owners i.e., the assessee Shri Sanjay M Chawla, Smt. Rekha Chawla and Smt. L Ammini and converted into 77 plots of various sizes. These plots were sold during the previous years, relevant to assessment years 2010-11, 2011-12 2012-13 and the sale consideration from the sale was shared between Smt. L. Amminiammal at 50% and Shri Sanjay M Chawla and Smt. Rekha Chawla, jointly at 50%. Thus, having regard to the information contained in the said seized document at Page Nos. 82 to 86, vide Annexure ANN/PS/SS/B D/S-3, dated 10.01.2012, seized during the course of search and in the absence of any enquiry/verification made by the Assessing Officer, with regard to the sale of land, pertaining to his share, in the said jointly owned property in Tharamangalam, made by the assessee, during the previous year relevant to assessment year 2010-11, including about the actual sale consideration received and the profit earned there from, during the assessment proceedings, the said assessment order dated 24.3.2014 passed by the Assessing Officer, for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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