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TMI Blog2022 (7) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the Coordinate Bench of the Tribunal has held such amendment to be retrospective in nature. Therefore, considering the totality of the fact of the case and in the interest of justice, we deem it fit and proper to restore the issue to the file of the AO with a direction to adjudicate the issue afresh and in accordance with law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. Grounds raised by the assessee on the issue of addition 14A are accordingly allowed for statistical purposes. - ITA No.643 & 644/Hyd/2017 - - - Dated:- 25-7-2022 - Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member For the Assessee : Shri Mohd. Afzal, Advocate For the Revenue : Shri Rajendra Kumar,CIT(DR) ORDER PER R.K. PANDA, A.M The above two appeals filed by the assessee are directed against the order dated 29.11.2016 of the learned CIT (A)-12, Hyderabad relating to A.Ys.2012-13 2013-14 respectively. Since identical grounds have been raised by the assessee in both the appeals, therefore, these were heard together and are being disposed of in this common order. ITA No.643/Hyd/2017 A.Y 2012-13 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d consequent to seizure of incriminating material found during the course of search seizure operation carried out in the case of M/s. Indu Projects Ltd., and Group of cases on 18-07- 2012. The assessee filed return on 22-04-2014 in response to the notice u/s.153C issued, by declaring an income of Rs. 1,61,46,330/- and the scrutiny proceedings were completed u/s. 143(3) r.w.s. 153C vide order dt.31-03-2015. The basic contention of the assessee on the issue is that the information found/traced during the search proceedings were nothing but assessee provisional Balance Sheet of company as on 31.03.09 and is not a prima facie material giving scope of inference of undisclosed income, as such could not have used for initiating proceedings u/s 153C of Income Tax Act. The appellant also raised objections on procedure followed in recording of reasons and in this regard, relied on certain judicial decisions. 5.1 Perused the submissions of appellant in this regard and as could be seen from the facts of the case, scrutiny proceedings were initiated Consequent to seizure of some information/documents belonging to the appellant company found during the course of search operations in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee during the assessment proceedings. 6.3.1 It may be further relevant to observe that the business 6.3.1 investments were quantified at Rs.13.12 Cr., being made in Indu projects Ltd., and Rs.50.00 Cr., in Corner Stone Property investment, apart for Rs.84.93 Cr., in equity shares of Indu group and other companies. It was admitted by the assessee himself that dividend was only received in investments of Rs.84.93 Cr., and no exempted income was derived for investment of RS. 63.12Cr. (50.00+ 13.12Cr.), as observed by the AO. In this context, it may be further relevant to observe, that once it is accepted that dividend is earned by company, which is exempted income, there is no basis for the assessee to state that there is no exempted income and provisions of Sec.14A are not applicable to them. Thus, based on the facts of the case, it is reasonable to hold that the provisions of sec. 14A are applicable to the case, and the case laws relied on by the assessee in this regard, are held to be distinguishable on facts. 6.3.2 It may be further relevant to observe that, the disallowance of Rs. 6,11,88,663/- as worked by the AO, was based on the investments of RS. 63.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , amend or modify the above grounds of appeal either before or at the time of 6 hearing of the appeal, if it is considered necessary . 6. The assessee has also raised the following additional grounds: 1. The learned Commissioner (Appeals) ought to have appreciated that have satisfaction as appreciated that enjoined in section 153C of the IT Act appellant had 1961, that the appellant had undisclosed income, on account of material found in the searched person belonging to the assessee and not belonging searched to person, not having been the recorded by the Assessing Officer in the case of I Shyam Prasad Reddy, who was subjected to 132 of proceedings u/s the IT Act and therefore, the order u/s 143(3) r.w.s 153C in the case of appellant for the assessment year 2012-13 is without jurisdiction and therefore, wholly unsustainable in law and facts. 2. The learned Commissioner ought to have restricted the disallowance to the extent of exempt income earned i.e. Rs.49,09,241/-, therefore, erred in confirming the disallowance of Rs.6, 11,88,863/- . 7. The learned Counsel for the assessee referring to the decision of the Hon'ble Supreme Court in the case of NTPC and vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordinate Bench of the Tribunal has held such amendment to be retrospective in nature. Therefore, considering the totality of the fact of the case and in the interest of justice, we deem it fit and proper to restore the issue to the file of the Assessing Officer with a direction to adjudicate the issue afresh and in accordance with law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. Grounds raised by the assessee on the issue of addition 14A are accordingly allowed for statistical purposes. ITA No.644/Hyd/2017 A.Y 2013-14 11. The grounds raised by the assessee are as under: 1. The order of the learned Commissioner of Income Tax (Appeals) is against the law, weight of evidence and probabilities of case. 2. The Commissioner erred in confirming the order of the Assessing Officer made u/s 143(3) of the IT Act, as no incriminating material was found and seized belonging to the assessee in the searched premises, as the Assessing Officer acquired jurisdiction by issuing 153C notice for earlier years. 3. The learned Commissioner ought to have appreciated that the learned Assessing officer acquired jurisdiction to make a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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