HITESH GOLCHHA, RAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, RAIPUR

PER PAWAN SINGH, JUDICIAL MEMBER: 1. These four appeals by the assessee are directed against the separate orders of Principal Commissioner of Income Tax, Raipur (for short, “PCIT”), Raipur for A.Ys. 2014-15 to 2017-18. In all the appeals, the facts are common except variation of certain figures of addition, the assessee has raised identical grounds of appeal in all the cases, therefore with the consent of parties all the appeals are clubbed, heard and are decided by common order. For appreciation of facts appeal for A.Y. 2014-15 in ITA Hitesh golchha to 44/RPR/2021 No. 41/RPR/2021 has been treated as lead case. The assessee has raised the following grounds of appeal:- “1. The order passed by ld. Pr.CIT is illegal, authorities below initio void & unsustainable as the same has been passed without giving any opportunity of hearing to assessee, contrary to mandatory requirement of law. Consequent revision order is illegal & is liable to be quashed/annulled.

3. Without prejudice to above grounds, on the facts and circumstances of the case and in law, Ld. Pr.CIT erred in branding assessment order as erroneous/prejudicial on an issue which itself was not covered by ambit of search assessment. Order passed u/s 263 is illegal and is liable to be quashed.

4. The appellant reserves the right to add, amend or modify any of the ground/s of appeal.”

2. Brief facts of the case are that the assessee is proprietor of Mouli Investment. A search was carried out on the assessee on 15/07/2016. Consequent upon search, a notice under section 153A was served for filing return of income. The assessee filed return of income in response to notice under section 153A on 16/01/2017. The assessment was completed under section 153A r.w.s. 143(3) on 21/12/2018. In the assessment order no income was added. The assessment order was revised by ld. PCIT by exercising powers under section 263 vide order dated 31/03/2012. Before revising the assessment order, the ld. PCIT issued show-cause notice under section 263 dated 30/03/2021 for filing reply by order dated 31/03/2021. In the show-cause notice, the PCIT Hitesh golchha ITA Nos.41 to 44/RPR/2021 noted that the assessee is in the real estate business and sold flats to various persons at the lesser than the value adopted by the Stamp Valuation Authority and that the provisions of section 43CA are attracted. The ld. PCIT also noted that there is a difference of sale consideration and value determined by Stamp Valuation Authority in respect of 12 such persons of Rs. 33.02 lakhs and that the AO failed to verify and applying the correct law. The ld. PCIT considered the reply of the assessee and the same is not satisfactory. The ld. PCIT set aside the assessment order and directed to verify the sale deed for the year under consideration and pass the assessment order afresh by giving adequate opportunity to the assessee. Aggrieved by the order of ld. PCIT the assessee has filed the present appeal before this Tribunal.