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TMI Blog2023 (9) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the provisions of Sections 139, 147, 148, 149, 151 and 153 and relate to a period of 6 assessment years immediately preceding the assessment year relevant to the previous year in which the search was conducted or requisition made and operates simultaneously with both Sections 153A and 153C. In addition, in the case of such other person, since satisfaction has to be recorded by two Assessing Officers (of the searched entity as well as third party) and there may be some elapse in time for the transfer of records from the first officer to the second, Section 153C(2) provides for the framing of the assessment for an additional year, ie., the year of search as well, in certain demarcated situations. Since that situation does not arise in the present case, I desist from elaborating further in this regard. With the amendment of the provisions in 2017 by Finance Act, 2017, with effect from 01.04.2017, the Department was also entitled to extend the block period for a further period of 4 years in addition to the 6 years originally provided, though for the 4 years brought within the ambit of the block period, an additional condition has been imposed, being the availability of materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the provisions of Section 153A and 153C. The contention of the revenue that a mandate is cast upon the Assessing Officer of the third party to issue notice under Section 153C for all the years comprising the block, mechanically and automatically, is thus rejected. To clarify, it is only where the satisfaction note recorded by the receiving Assessing Officer, i.e., the Assessing Officer of the third party reflects a clear finding that the incriminating material received has a bearing on determination of total income of the third party for 6 assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made, that such notice would have to be issued for all the years. It thus flows from the provision that the receiving assessing officer must apply his mind to the materials received and ascertain precisely the specific year to which the incriminating material relates. It is only when this determination/ascertainment is complete that the flood gates of an assessment would open qua those particular years. The issuance of a notice cannot be an automated function unconnected to this exercise of analysis and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57, 27168, 27166, 27181, 27160, 27184, 27186 27178 of 2021 and W.P. Nos.24407 of 2021 etc. batch WMP.Nos.28643, 28645, 28646, 28648, 28649, 28660, 28662, 28656, 28657, 28674, 28677, 28652, 28653, 28679, 28682, 28686, 28687, 28669 28672 of 2021 W.P. Nos.25826, 25830, 25832, 25835, 25840, 25843, 25845 and 27078, 27083, 27085, 27092, 27096 27100 of 2021 and WMP.Nos.27303, 27305, 27309, 27310, 27312, 27313, 27314, 27315, 27322, 27323, 27325, 27326, 2327, 27328 and 28543, 28548, 28545, 28553, 28555, 28566, 28567, 28569, 28572, 28560, 28561, 28574 28576 of 2021 THE HONOURABLE D R. JUSTICE ANITA SUMANTH For the Petitioners Mr.R.V.Easwar, Senior Counsel for Mr.M.V.Swaroop Mr.P.S.Raman, Senior Counsel for Mr.M.V.Swaroop Mr.AL.Somayaji, Senior Counsel for Mr.M.V.Swaroop For the Respondents : Mr.A.P.Srinivas, Senior Standing Counsel ORDER This common order is passed in the cases of Agni Vishnu Ventures Pvt. Ltd., Rajan Narasimulu Jayaprakash, Vishnusurya Projects and Infra Pvt. Ltd., Sri Balaji Charitable and Educational Trust and Fourth Force Surveillance Indo Pvt. Ltd. as all challenges emanate from a search conducted in the premises of Agni Estates and Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18. The company was incorporated in the year 1992 by Shri.Rajan Jayaprakash Narasimulu, who is a Director and the main person operating Agni group of companies. During the course of search on 05.07.2018, at M/s. Agni Plots, No:30/16, Conron Smith Road, Gopalapuram, Chennal -600086, certain incriminating materials with respect to foreign companies, bank accounts, trusts associated with the Agni Group of companies/ its Managing Director-main person Shri.R.NJayaprakash were found and seized vide annexure ANN/ARS/AGP/LS/S1 to S20. These seized materials pertain to the following entities: (i) M/s.Mine infra Consultants Pte Ltd., Incorporated in Singapore (ii) M/s.Yalova Holding Ltd, incorporated in Seychelles. (iii) M/s.Yarrow Properties Inc., incorporated in British Virgin Islands (iv) M/s Bramerton Investments Pte Ltd., incorporated in Singapore (v) M/s.A.S.Coal Resources Pte Ltd., incorporated in Singapore (vi) M/s.Featherfin Partners Pte Ltd., incorporated in Singapore (vii) M/s.Soach Global Strategic Investments Ltd., incorporated in Mauritius (viii) M/s.Astraea Funds Ltd., incorporated in 2. M/s.Mine Infra Consultants Pte Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld act as its fund manager for the actual purpose of receiving and remitting funds and for this it will charge fund management fees at 5%. Query: 1. What would be the tax implication in Singapore in the case of the Singapore company in respect of the 5% fund management fees. 2. Is there any possibility of deeming the entire Income (not 5%) as income of Singapore company. (ii) Facts of the case The common understanding is that taxation in Singapore is receipt based taxation. Therefore only where an income is received in Singapore, taxation would arise in Singapore. In the case of Hongkong, however, taxation is source based. Therefore, if an Income has its source in Hongkong, no matter where it received, the income would be subjected to tax in Hong Kong. The above makes it clear that for the services rendered in India by an individual the payments are being brought through overseas entities in to the Singapore subsidiary of the individual as if they were charges received for the services rendered by overseas companies outside India, for the evasion of taxes payable in India. 4. M/s.Soach Global Strategic Investments Ltd and M/s. Astraea F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emises of the Auditor on 19.03.2019. (xi) The petitioner points out that the reference to 19.03.2019 relates to a search that had been conducted in another entity forming part of the Vel s group of Institutions. A challenge is laid on the credibility of this information and whether at all it can be invoked to initiate the impugned proceedings, seeing as, in the present case, the proceedings are stated to be based on a search in Agni Foundations which took place in July, 2018. (xii) Finally, they draw attention to the statement of the Assessing Officer at paragraph 5 to the effect that the remittances made are suspicious as there was no credible income-earning activities by the concerns warranting such remittances at all. (xiii) The satisfaction note refers to A.Ys 2013-14 to 2018-19, in common for all years. After an exchange of notices and responses, the impugned assessments have come to be completed on 25.09.2021 and the Writ Petitions instituted thereafter. 4. Common counters have been filed by the respondents denying all averments in the writ affidavit. They would maintain that the assessments have been made in accordance with proper procedure and by officers vest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) read with Section 153 C consequent on the search in the case of Agni Estates and Foundations Pvt. Ltd. Orders of assessment state that in the course of search, certain incriminating materials had been found with respect to foreign companies, bank accounts and trusts associated with the Agni Group of companies and its Managing Director R.N.Jayaprakash. Being of the view that such materials related to the petitioner, satisfaction under Section 153C was drawn and notices issued. 11. Though the affidavit filed in support of the Writ Petition states that the conduct of search in the premises of Agni Estates and Foundation Pvt. Ltd. was itself in violation of the proper procedure set out under Rule 112(13) of the Income Tax Rules, 1962, for examination of electronic record, this argument was not really pursued in the course of hearing. 12. The contentions raised in these matters are almost identical to those advanced in the case of Agni Vishnu Ventures Pvt. Ltd. and captured in the earlier portions of this order relating to that petitioner. 13. Since the basis of proceedings under Section 153C is the satisfaction note recorded, the note is extracted below: Satisfaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Smith Road, Gopalapuram, Chennai-600086, a set of loose sheets numbering from 1 to 106 were found and seized vide annexure ANN/ARS/AGP/LS/5-9. In the said loose sheets, pages 88 to 95 were Tax consultation advice, provided by M/s.RAFFLES TAX, 120, Lower Delta Road, #10-05, Cendex Centre, Singapore 169208, addressed to Shri.R.Sundararajan, Managing Partner of M/s.Sundararajan Associates, Chartered Accountants, No:7, Vyasarpadi Gangadharan Street, Numgambakkam, Chennai 600034. M/s. Raffles is a Singapore headquartered corporate solutions provider specialising in company formation, corporate secretarial, accounting, payroll, taxation, and expansion advisory services. Shri R.Sundararajan, CA is the auditor of the M/s.Agni group. The said consultation provided by M/s. Raffles, had against the date 04.05.2011, as below: (i) Facts of the case X Ltd, an Indian Company has utilized the services of Mr.A for a contract in India. No payment has been made to A directly for this contract. The subsidiary of X Ltd based outside India is also undertaking projects in Dubai and Jordan. X Ltd has entered into an agreement with a BVI company for the purpose of making pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a sum of US$ 13,43,625, that is Rs.6 Crores was received by the assessee on 03.03.2011 and 05.02.2011 (AY:2011-12). The pendrive also contained an entry dated 07.01.2014 for the receipt of US$ 1,32,250, that is Rs.59,05,666/- (AY:2014-15). These receipts have not been admitted in the returns of income filed by the assessee for these years. 5. There is no credible income earning activities by the overseas concerns associated/floated by the Shri.R.N.Jayaprakash and for the receipt of foreign remittances into his companies promoted in India, including M/s.Vishnu Surya Logistics Pvt Ltd. The remittances into M/s. Vishnu Surya Logistics Pvt Ltd are suspicious in nature. Hence, the seized materials and information found will have a bearing in the computation of the total income of M/s. Vishnu Surya Logistics Pvt Ltd. for AYS: 2013-14 to 2018-19. Hence, this is a fit case for assessment/re-assessment u/s 153C of the Income Tax Act, 1961. Issue Notice u/s 153C of the Income Tax Act, 1961 for AYS 2011-12 to 2018-19. Date:21.01.2021 Sd/- (M.Vivekanandan) Deputy Commissioner of Income tax Central Circle 2(1), Chennai. 14. As can be seen, the satisfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esh Educational Trust; PAN:AAATV9803C M/s.Vels Institute of Science, Technology and Advanced Studies; PAN:AAATV9804F 3. Date of initiation of search in the case of the person referred to in section 153A 19.03.2019 4. Name, address and PAN No. of the person whose case action under section 153C is proposed M/s Vishnu Surya Projects Infra Pvt Ltd PAN:AADCS0735L 5. Specific details of the seized material on the basis of which under section 153C is proposed: (m) Nature of the seized material (money/bullion/jewellery/other valuable article or thing/books of account/documents) (n)Description of the seized material (o) Address of premise/place from where such material was seized. Incriminating evidences seized vide annexure ANN/SBC/RS/ED/S vide panchanama dated 20.03.2019 from the residence of Sunder Rajan at B/9, Ceedeeyes Greenjade Apartments, No.33, Voc Main Road, Kodambakkam, Chennai-24. M/s.Vishnu Surya Projects Infra Pvt. Ltd. Search operation U/s.132 of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled in a proceeding for a Writ of Certiorari to determine whether or not that finding of fact was correct. The Court, quoting Farewell L.J. in R. V. Shoreditch Assessment Committee (1910) 2 KB 859 held as follows: 25. It is well established that where the jurisdiction of an administrative authority depends upon a preliminary finding of fact, the High Court is entitled in a proceeding for a writ of certiorari to determine upon its independent judgment whether or not that finding of fact is correct. The matter has been very well put by Farwell L.J. in R.v. Shroreditch Assessment Committee , (1910) 2 KB 859 at p.879 (A): The existence of the provisional list is a condition precedent to their jurisdiction to hear and determine, and as the claimant is entitled to require them to hear and determine, they cannot refuse to take the steps necessary to give to such jurisdiction; if they do, their refusal may be called in question in the High Court, No tribunal of inferior jurisdiction can by its own decision finally decide on the question of the existence or extent of such jurisdiction: such question is always subject to review by the High Court, which does not permit t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A notice of this sort is a farce and militates against being the basis for further adjudication proceedings. 26. In the present case, orders of assessment have been passed for A.Ys.2011- 12 to 2013-14 under Section 143(3) read with Section 153C and for AYs.2014-15 to 2019-20 under Section 143(3). 27. Though notices under Section 153C have been issued in all cases, the satisfaction note refers only to two years (AYs. 2011-12 and 2014-15) and show cause notices have been issued only for those two years. Hence, the orders of assessment for the other years must go. 28. Prior to completion of proceedings, the petitioner has also specifically sought an opportunity of cross examination that has not been granted to it. This request is vide submission dated 29.03.2021, which is, admittedly, been received by the officer on 31.03.2021. Despite this request being on record, the officer has proceeded to pass the impugned orders dated 27.09.2021 ignoring the same. III. Facts and rival contentions in the cases of Balaji and Fourth Force: 29. Sri Balaji Charitable and Educational Trust (in short Trust ) is stated to be running a Engineering College in Chennai. At the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Further, it was seen from loose sheet no: 36 of ANN/ARS/AGP/LS/S-6, that, during the period 16.05.2017 to 24.06.2017 a total sum of Rs.2,89,13,103/- was mentioned. The sheet also had a noting cash deposited on 22/6, 27/6, 28/6, 29/6 30/6 totalling 150.00 meaning Rs.1,50,00,000/-. Further, vide loose sheet no: 35 of ANN/ARS/AGP/LS/S-6, a sum of Rs.4,64,83,103/- was written against various dates starting from 27.06.2017 to 12.07.2017. Vide loose sheet no:37 of ANN/ARS/AGP/LS/S-6 payments totaling Rs.1,86,18,750/- on various dates ranging from 01.07.2017 to 12.07.2017 were written. These cash transactions were not reflected in the Tally books of accounts seized during the course of search. 3. These transactions will have bearing in the determination of the total income of the assessee M/s.Balaji Charitable and Educational Trust (M/s.Agni College of Technology) (PAN: AABTS7300Q) for AY: 2018-19. Hence, I am satisfied that this is a fit case for assessment/reassessment u/s.153C of I.T.Act, 1961 for AYs: 2013-14 to 2018-19. Issue Notice u/S.153C of the Income Tax Act, 1961 for AYs:2013-14 to 2018-19. Date: 17.09.2020 (M.Vivekanandan) Deputy Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was Rs.4,66,23,794/-. Hence, there is a shortfall of Rs.56,05,129/- for AY:2018-19 in the admission of total income. 5. These details of entries will have a bearing in the determination of the total income of the assessee for AY: 2018-19. Hence, I am satisfied that this is a fit case for assessment/reassessment u/s.153C of I.T. Act, 1961 for AYs: 2013-14 to 2018-19. Issue Notice u/s 153C of the Income Tax Act, 1961 for AYs:2013- 14 to 2018-19. Date: 17.09.2020 (M.Vivekanandan) Deputy Commissioner of Income tax, Central Circle 2(1), Chennai 35. Both satisfaction notes reveal the existence of seized material relatable to Assessment Year (AY) 2018-19 alone. This forms the crux of the petitioners challenge to the orders of assessment that were subsequently framed for the block period 2013-14 to 2018-19. 36. The Trust and Fourth Force would point out that the provisions of Section 153C required the satisfaction of the Assessing Authority to the effect that seized material had been found in relation to each of the assessment years comprised in the block of 6 years. 37. In both the cases, while the satisfaction note is common to the block and make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There is thus, no legal flaw in the assessments made. Moreover, the assessments are only protective and the substantive assessments have been made in the case of R.N.Jayaprakash and it is for the petitioners to challenge the same by way of statutory appeals. 43. The common legal submissions made relate to the validity of the notices under Section 153 of the Act. The petitioners would argue that the statutory prescription of Section 153C itself calls for the existence of incriminating material specifically relatable to each assessment year. 44. In the satisfaction note relating to the some of the years, the satisfaction notes do not reveal any incriminating material found relatable to the petitioners and hence, in such instance, the notices and all proceedings thereafter are liable to be quashed. For this purpose, they rely upon the judgment of the Hon ble Supreme Court in the case of Commissioner of Income Tax V. Sinhgad Technical Education Society 397 ITR 344 . 45. The challenge in that case was by way of statutory appeal where orders of assessment had been impugned through the hierarchy of appellate authorities. One of the grounds that had been taken related to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person [and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in sub-section (1) of section 153A 49. A substantial amendment took place in 2015 where the scope was widened to encompass satisfaction in relation to money, bullion, jewellery or other valuable article or thing seized or requisitioned, that belonged to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person [for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and] for the relevant assessment year or years referred to in sub-section (1) of section 153A. 52. What is relevant to the present case is Section 153C as it stood post the amendment in 2017. The interpretation of the revenue is that upon recording of satisfaction by the Assessing Officer that the books of accounts/documents/assets, seized or requisitioned have a bearing on the determination of total income of the other person, he is mandated to issue a notice for the entirety of the block of 6 assessment years and there is no discretion that has accorded to him in this regard. 53. Thus, the reference to 6 assessment years in Section 153C is as a block and the existence of seized material for any one year would not just validate but would require statutorily the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition, in the case of such other person, since satisfaction has to be recorded by two Assessing Officers (of the searched entity as well as third party) and there may be some elapse in time for the transfer of records from the first officer to the second, Section 153C(2) provides for the framing of the assessment for an additional year, ie., the year of search as well, in certain demarcated situations. Since that situation does not arise in the present case, I desist from elaborating further in this regard. 60. With the amendment of the provisions in 2017 by Finance Act, 2017, with effect from 01.04.2017, the Department was also entitled to extend the block period for a further period of 4 years in addition to the 6 years originally provided, though for the 4 years brought within the ambit of the block period, an additional condition has been imposed, being the availability of material revealing that income that has escaped assessment exceeds 50 lakhs or more. 61. The scheme of a block assessment includes both assessment as well as reassessment and is a scheme different and distinct from all the other modes of assessment as well as re-assessment already available under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condition precedent. 67. Thus the petitioners argue that the condition precedent for issuance of notice is the recording of satisfaction that the seized material must relate to specific years comprised in the block, whereas the counter of the Department is that, though a condition precedent, it would suffice that the materials relate to one year which would then open up the avenue of assessment for the entirety of the block period. 68. The search in the case of Sinhgad was in 2005 when Section 153 C as it stood then, did not specifically make reference to 'recording of satisfaction' in the context of the 'period' for which notices will be issued. Despite this, the Hon ble Supreme Court has understood the scheme of block assessment under Section 153 C to mean that notice under Section 153C can be issued only where the satisfaction note draws a nexus between the incriminating material and the specific year to which it relates. 69. Furthermore, every assessment year for the purpose of the Income Tax Act, is a separate and distinct year. No doubt, the scheme of assessment under Sections 153A and 153 C envisage creation of a block. But that creation does not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be computed by the AOS as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the total income of the aforementioned six years in separate assessment orders for each of the six years. In other words, there will be only one assessment order in respect of each of the six AYS in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a return required to be furnished under section 139; (b ) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made : Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years: 153C. [Notwithstanding anything contained in Section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied , that (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned, shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uance of notice save the conduct of a search under Section 132 or making of a requisition under Section 132A. Upon the occurrence of one of the aforesaid events, it is incumbent upon the officer to issue notice under Section 153A to the searched entity in line with the procedure stipulated. 79. Section 153C however requires the satisfaction of two conditions prior to issuance of notice: i) Recording of satisfaction by the Assessing Officer of the searched entities that some of the incriminating materials relate to a third party. ii) Recording of satisfaction by the Assessing Officer of the third party that the incriminating materials have a bearing on the determination of the total income of that third party. 80. Notice under Section 153C would have to be issued only upon the concurrent satisfaction of both conditions as aforesaid. To this extent, there is, in my considered opinion, a clear and marked distinction between the provisions of Section 153A and 153C. The contention of the revenue that a mandate is cast upon the Assessing Officer of the third party to issue notice under Section 153C for all the years comprising the block, mechanically and automatically, is thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondition. 86. If the argument of the petitioners is to be accepted, the assessments for the years 2016-17 and 2017-18 would also have to go, since the satisfaction note does not contain a reference to the small note book that have admittedly been seized and are part of the records, though omitted to be mentioned in the satisfaction note. 87. As on date, when the matters are being heard, the assessments have been allowed to be proceeded with till completion of assessment, which gives the Court the benefit of not just the satisfaction note but the show cause notices as well as the orders of assessment. These records reveal the variation between the satisfaction note and the assessment order in terms of the records seized, making it evident that there has been an omission on the part of the officer who has recorded satisfaction to refer to the small note books in relation to AYs 2016-17 and 2017-18. 88. The legal issue is hence decided in favour of the petitioners, and would have to be applied to determine the validity or otherwise of each of the orders of assessment passed in the case of each of the petitioners. This Court is not in possession of all satisfaction notes. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agni Plots, No:30/16, Conron Smith Road, Gopalapuram, Chennai 86. 7. 2019-20 ANN/ARS/AP/B D/S M/s.Agni Plots, No:30/16, Conron Smith Road, Gopalapuram, Chennai 86. Fourth Force: S.No. Assessment Year Seized Material based on which addition made in Assessment order Premises from which the material was seized 1. 2013-14 - T.G.Balaji, No.22/10, Balaji Nagar, 4 th Street, Royapettah, Chennai-600014 2. 2014-15 - T.G.Balaji, No.22/10, Balaji Nagar, 4th Street, Royapettah, Chennai-600 014 3. 2015-16 - T.G.Balaji, No.22/10, Balaji Nagar, 4th Street, Royapettah, Chennai-600 014 4 2016-17 - T.G.Balaji, No.22/10, Balaji Nagar, 4th Street, Royapettah, Chennai-600 014 5. 2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order that I propose to pass in conclusion, I see no necessity to burden this order with the entirety of the satisfaction note. Suffice it to say that it is premised on a search in the case of Agni Estates and Foundations and refers to seized material that relates to 8 entities incorporated in Singapore, Seychelles, British Virgin Islands and Mauritius. 95. The information of R.Sundararajan, Chartered Accountant referred to in the satisfaction notes extracted in the cases of Agni Vishnu Ventures Pvt. Ltd., and Vishnu Surya Project and Infra Pvt. Ltd. above has been extracted in the present satisfaction note as well. The conclusion is also apposite that there were no services of the nature that would justify the payments made to the overseas concerns. 96. Based on a prima facie application of tax evasion, the remittances made have been brought to tax in this petitioner s hands. In addition, there are cash transactions reflected in small pocket sized note books, seized in the course of searches in other premises, which are alleged to be unaccounted. 97. The petitioner has filed returns in response to notices under Section 153C and has received show cause notices as well. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of case as per the provisions of Section 153D of the Act for cases dealt with under Section 143(3) read with Section 153A/153C, he would not be in a position to consider the application under Section 144A. He points out that in fact all the points that have been raised in the 144A application have been duly considered by him even while granting approval under Section 153D of the Act. 104. The impugned orders of assessment have come to be passed on the last day of limitation, admittedly, without granting an opportunity of cross examination as sought for by the petitioner. 105. Per contra, it is the case of the respondents that additions made did not hinge entirely on those statements, and that there have been other incriminating materials that have been found based on which the additions/disallowances have been made. That may well be the case. 106. However, it is a settled position that once a sworn statement is recorded from an individual which is relied upon in arriving at a decision in the case of an assessee, the assessee be given a copy of the sworn statements and thereafter, an opportunity to cross examine the persons concerned, if sought. 107. In the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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