BHAGWATI SURESH MODI,PALANPUR vs. ITO, INT TAX WARD-3(2)(1), MUMBAI

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ITA 746/MUM/2023Status: DisposedITAT Mumbai28 April 2023AY 2013-149 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that assessments for Assessment Years prior to 2011-12 were barred by limitation as they fell outside the 10-year period prescribed by Explanation 1 to Section 153A. For subsequent years, the undisclosed income did not exceed ₹50 lakhs, divesting the AO of jurisdiction under Section 153C.

What were the facts?

During a search on the Satyam group, incriminating documents were found indicating the assessee made significant cash payments for property purchases. The Assessing Officer initiated proceedings under Section 153C based on this information.

What were the issues?

Whether the assessment proceedings initiated under Section 153C for Assessment Years prior to 2011-12 were barred by limitation. Whether the Assessing Officer had jurisdiction to pass orders under Section 153C for subsequent years given the quantum of undisclosed income.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SHRI RAHUL CHAUDHARY, JM

For Appellant: Shri Kishor R. Gheewala, AR
For Respondent: Shri Purushottam Tripuri, CIT DR
Hearing: 26.04.2023Pronounced: 28.04.2023

Heard together (7 matters)

ITA No. 3054/Mum/2022
ITA No. 3071/Mum/2022
ITA No. 3073/Mum/2022
ITA No. 3075/Mum/2022
ITA No. 743/Mum/2023
ITA No. 745/Mum/2023
ITA No. 747/Mum/2023

Read from the judgment's own cause title. This page is filed under one of them.

1.

These are fourteen appeals filed by the assessee from A.Ys. 2008-09 to 2017-18 with respect to similar issue. Therefore, all these appeals are argued by the learned Authorized Representative on similar lines and the learned Departmental Representative also responded identically and therefore, these appeals are disposed off by the common order.

2.

Brief facts of the case shows that assessee is an individual who has not filed her return of income for A.Y. 2008-09.

3.

Search took place under Section 132 of the Income-tax Act, 1961 (the Act) on 6th March, 2018 in case of Satyam, Sangani, Shaligram group of companies. During search

7.

In this case, the satisfaction of the learned Assessing Officer i.e. Joint Commissioner of Income Tax, Central Circle, 2(2), Ahmadabad, being the Assessing Officer of the searched person was recorded on 18th February, 2021 and satisfaction of the learned Assessing Officer of the assessee was recorded on 31st March, 2021 for all these years.

10.

Assessee submitted that she is a senior citizen and the matter is too old but she denied that she paid any sum in cash. She also requested for further additional evidences. 011. The learned Assessing Officer made the addition of ₹1,11,00,000/- as unexplained cash credit under Section 69 of the Income-tax Act, 1961 (the Act). As assessee having house property income and also the income from other sources, the draft order under Section 143(3) read with section 144C of the Act was passed on 30th September , 2021.

21.

Accordingly, following ITA numbers are allowed as the orders of the lower authorities are barred by limitation. .Y. 3070/Mum/2022 2008-09 742/Mum/2023 2008-09 3071/Mum/2022 2009-10 743/Mum/2023 2009-10 744/Mum/2023 2010-11 3053/Mum/2022 2010-11 022. Accordingly, all these six appeals are dismissed.

23.

Further, as per information the assessee has made payment in cash as under:-

F.Y. A.Y. Amount paid 1.04.07 to 31.03.2008 2008-09 1,11,00,000 1.04.2008 to 31.03.2009 2009-10 50,00,000 1.04.2009 to 31.10.2010 2010-11 Nil 1.04.2010 to 31.03.2011 2011-12 3,57,500 1.04.2011 to 31.03.2012 2012-13 Nil 1.04.2012 to 31.03.2013 2013-14 Nil 1.04.2013 to 31.03.2014 2014-15 Nil 1.04.2014 to 31.03.2015 2015-16 Nil 1.04.2015 to 31.03.2016 2016-17 Nil 1.04.2016 to 31.03.2017 2017-18 Nil 024. As we have already held that assessment years prior to A.Y. 2011-12 are beyond the scope of provisions of section 153C of the Act and further in subsequent years the aggregate amount of undisclosed income does not exceed ₹ 50 lacs, therefore, the Assessing Officer loses his

25.

Accordingly, all other eight appeals filed by the assessee are allowed.

26.

In the result, all fourteen appeals filed by the assessee are allowed.

Order pronounced in the open court on 28.04.2023.

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