9911796707
TMI Blog2024 (5) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961 by Ld. Assessing Officer and the consequent assessment proceedings in the case are bad in law and against the facts and circumstances of the case and void-abinitio and basic jurisdictional conditions and pre-requisites under section 153A were not met. 2) That in any case and in any view of the matter, the assessment framed under section 153A of the Act, is bad in law and against the facts and circumstances of the case. 3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making an addition of Rs. 56,65,500/- u/s 69 of the Act, as unexplained investment in land vide para 6 of the assessment order and more so when there was no incriminating material found as a result of search. 4) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in denying the claim deduction u/s 54F of Rs. 4,07,906/- vide para-7 of the assessment order and has thus erred in computing long term capital gain accordingly and that too without any basis, material or evidence and merely on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. In response, assessee has filed return of income on 31/07/2009 declaring total income of Rs. 6,06,690/-. Further, notices u/s 143(2) and 142(1) were issued and served on the assessee along with questionnaire. In response, AR of the assessee attended from time to time and submitted the relevant information as called for. 5. The Assessing Officer observed that the assessee is wife of Shri Yadav Singh CME, Noida Authority. The assessee is a housewife with no expertise in any field and having no professional degree. Further, Assessing Officer observed from the Media Reports above the accumulation of income of properties by the husband of the assessee. The Assessing Officer observed that during the course of search and seizure operation u/s 132 of the Act at residential premises of the assessee and her husband various incriminating documents were found and seized. He also observed that unaccounted cash and jewellery was found and seized from the resident. The Assessing Officer also observed that certain clinching evidences in the form of slips are establish the functioning of the assessee's husband and his contact in avoiding the contracts for his persons benefit. 6. The Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs by using the unaccounted/undisclosed money of her husband. After observing the position of agricultural lands by the assessee through undisclosed manner by paying part consideration in cash are below FMV, the Assessing Officer treated the differential value of FMV and sale consideration aggregating to Rs. 34,51,000/- as paid in cash to the farmers. Further, he observed that assessee as well as sellers of the land had failed to provide any information and felt explain the source of investment in such property by the assessee, accordingly, purchased consideration amounting to Rs. 22,14,500/- (cost of acquisition, stamp duty and other charges as per chart) is treated as unexplained investment u/s 69 of the Act. Accordingly, the Assessing Officer treated the above undisclosed/unexplained investment to the income of the assessee u/s 69 of the Act. 9. Further, the Assessing Officer collected information post search relating to claim of allowance u/s 54F of the Act after verification of the capital gains declared by the assessee and observed that in the absence of details and adherence to the provisions of the section 54F cannot be ascertained. Further, he proceeded to disallow the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a chart ground wise and submitted that the assessment year under consideration i.e., A..Y.2009-10 and other A.Ys.2010-11 to 2013-14 are undisputedly unabated assessment years. In this regard, he submitted that the search was conducted on 27/11/2014 and the return of income for A.Y.2009-10 was filed on 31/07/2009 and time of issuance of notice u/s 143(2) was expired on 30/09/2010. Therefore, the assessment under consideration is unabated without any doubt by relying on the decision of Hon'ble Supreme Court in the case of Abhisar Buildwell (P.) Ltd. (2023) 454 ITR 0212. The Ld. AR submitted that the Assessing Officer proceeded to make the additions relating to unexplained investment in house property, unexplained investment (is submitted to be fair Ld. AO has not made the additions of Rs. 6,16,000/- even though he has discussed in this order) and disallowance of claim u/s 54F and unexplained investment in land were made based on the information collected post search. In this regard, he brought to our notice the various discussions from the assessment order and he submitted that all the above said information were collected by the Assessing officer only during post search operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the assessee were also part of the search operation. In the above said search operation, we observe that separate punchnama was raised in the name of the assessee, certain materials were found relating to several payments made to various parties and particularly relating to farmers in relation to investments made by the assessee and her husband along with other family members. No doubt, post search notice u/s 153A was issued to the assessee to file the return of income and other information, assessee has also complied by filing a return of income and the other information as called for by the Assessing Officer. We observed from the records submitted before us that the details of investments made by the assessee in particular agri-lands purchased from farmers were found by the assessing officer during assessment proceedings only. The issue submitted before us is whether the information submitted by the assessee during the assessment proceedings are not to be treated as incriminating material. After considering the facts on record, we observed that the assessee is also one of the searched person and several payments made to several parties in particular farmers were found. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see herself could have generated undeclared source of income. Further, we observed from the assessment order that when the details of payment to farmers were called for from the Oriental Bank of Commerce held by the assessee. The Assessing Officer observed that assessee has withdrawn cash from the bank against such cheque payment declared as paid to farmers in the registered documents and he has observed that no cheques were issued, however, cash payments were made to the farmers after withdrawal from the bank. We observed from the record that Assessing Officer acknowledged that assessee has paid cash payment to the farmers to the extent of money withdrawn from the bank. These findings clearly shows that there is a direct link with the information collected from the assessee and substantiates that the assessee has capacity to make payments to farmers. We also observed from the record that the AO has made addition based on the presumption that the assessee has no source and also the difference between the investment made as per registered documents and circle rates as per the respective lands. In our considered view, as discussed above, the assessee has demonstrated that she has sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue cannot be left with no remedy. Therefore, even in case of block assessment under section 153A and in case of unabated/completed assessment and in case no incriminating material is found during the search, the power of the Revenue to have the reassessment under sections 147/148 of the Act has to be saved, otherwise the Revenue would be left without remedy." 23. With the above observation, we are inclined to direct the Assessing Officer to delete above mentioned additions made by him in the assessment order. Accordingly, ground Nos 4 to 7 raised by the assessee are allowed. 24. With regard to Ground no 8 is dismissed as not pressed as no submissions were made during the hearing. Similarly, the ground no 9 also dismissed as general. 25. In the result, the appeal filed by the assessee is partly allowed. 26. With regard to other appeals filed by the assessee relating to Asst. Years. 2010-11, 2011-12, 2012-13 and 2013-14. The facts in the above said appeals are exactly similar to the facts in the Asst. Year 2009-10, the findings in Asst. Year 2009-10 (ITA No.873/Del/2018) applicable mutatis mutandis to the appeal in the above said Assessment Years. Accordingly, the appeals fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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