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TMI Blog2024 (7) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Directorate. The foundation of proceedings under 1961 Act stands wiped out, thus, there is no ground to make additions in the returned income of the respondent-Assessee. The Appellate Tribunal has further recorded finding to the effect that documents resumed by Enforcement Directorate related to subsequent assessment years and Income Tax Department cannot make additions in the returned income of a particular year with respect to which documents do not relate. Thus, no factual or legal infirmity in the impugned orders passed by Appellate Tribunal as basis of assessment did not exist after FERA Proceedings were quashed by Special Director in the Enforcement Directorate. - HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE AND HON'BL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee apart from confessional statement of partner Sh. Ashok Kumar. 3. Whether in the facts and circumstances of the case the Income-tax appellate Tribunal, is legally correct in holding that the learned Commissioner of Income Tax (Appeal) had quashed the assessment as the same was barred by limitation, whereas the learned Commissioner of Income Tax (Appeals) held that the question of limitation became infructuous and academic in nature as the reassessment proceedings had already been quashed on some other ground. 4. The respondent-Assessee for the assessment year 1988-89 filed its return on 05.08.1988 wherein it declared income of ₹1,48,675/-. The officers of Enforcement Directorate searched different premises of the respondent-Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant-Income Tax Department initiated proceedings under Section 148 of 1961 Act alleging that respondent-Assessee has mis-declared value of goods exported by it. The assessment proceedings were initiated on the basis of show cause notice issued by Enforcement Directorate. The Assessing Officer made additions on the basis of record of Enforcement Directorate. The respondent-Assessee preferred an appeal before the first Appellate authority i.e. Commissioner of Income Tax (Appeals). The first Appellate authority allowed appeal for the assessment year 1988-89, however, dismissed appeal for the assessment year 1989-90. The respondent- Assessee as well as appellant-Income Tax Department preferred appeals before Appellate Tribunal which vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under 1961 Act against the respondent-Assessee. 8. We have heard the arguments of learned counsels for both sides and perused the record with their able assistance. 9. From the perusal of record, it is quite evident that Income Tax Department had created demand on the sole ground that Enforcement Directorate has searched premises of the respondent-Assessee and thereafter issued show cause notices alleging mis-declaration of value. Enforcement Directorate has dropped proceedings against the respondent-Assessee and the matter stands settled between the respondent-Assessee and Enforcement Directorate. The foundation of proceedings under 1961 Act stands wiped out, thus, there is no ground to make additions in the returned income of the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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