Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, PUNE BENCH, ‘A’ PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER
PER R.S. SYAL, VP :
This appeal by the Revenue is directed against the order
dated 27-01-2023 passed by the CIT(A) in National Faceless
Appeal Centre (NFAC) u/s.250 of the Income-tax Act, 1961
(hereinafter also called ‘the Act’) in relation to the assessment
year 2008-09.
Succinctly, the facts of the case are that the assessee is
engaged in the business as an estate agent. Without entering
into any formal agreement, the assessee started procuring lands
from farmers on commission basis for Reliance Industries Ltd,
2 ITA No.367/PUN/2023 Arun Tulsidas Sheth
which started acquiring lands for its SEZ project from Pen
Taluka. Survey took place at the premises of the assessee on
10-03-2010. The survey team enquired about expenditure
under the head “Land, Development and Commission”
amounting to Rs.3,48,89,228/-. The assessee explained that a
sum of Rs.1.00 crore was given as commission; and the
balance amount was incurred towards owners of land as
incentive. Since tax was not deducted at source from
commission of Rs.1.00 crore, the assessee surrendered
additional income to that extent. Out of the remaining
expenses, a further amount of Rs.20.00 lakh was surrendered
towards unverifiable expenses. Thus, out of total Rs.3.48 crore,
a sum of Rs.2.28 crore was allowed as deduction in the
assessment u/s.143(3) of the Act. Thereafter, proceedings
u/s.147 were taken by means of notice u/s.148 towards the
balance amount of Rs.2.28 crore. In the order passed u/s.143(3)
r.w.s.147, the AO made further disallowance of Rs.2.28 crore.
The ld. CIT(A) got convinced with the stand point of the
assessee and held that there was no failure on the part of the
assessee to disclose any material facts necessary for completion
of the assessment. He accordingly deleted the addition.
Aggrieved thereby, the Revenue has approached the Tribunal.
3 ITA No.367/PUN/2023 Arun Tulsidas Sheth
We have heard the ld. DR and perused the relevant
material on record. There is no appearance from the side of the
assessee despite notice. Original assessment in this case was
completed u/s.143(3) on 03-12-2010. Notice u/s.148 was
issued on 24-03-2015, i.e., after a period of four years from the
end of the relevant assessment year. First proviso to section
147 provides that where an assessment has been completed
u/s.143(3), no action can be taken u/s.147 after expiry of four
years from the end of the relevant assessment year unless an
income chargeable to tax escaped the assessment by reason of failure on the part of the assessee, inter alia, to make full and
true disclosure of all material facts. The case under
consideration involves assessment year 2008-09. Original
assessment in this was completed u/s.143(3). Notice u/s.148
was issued on 24-03-2015, which is after a period of four years
from the end of the relevant assessment year. It is apparent
from the reasons for re-assessment and the resultant addition
that the AO wanted to re-verify the expenses of Rs.2.28 crore,
which were duly examined in the course of original assessment
u/s.143(3) of the Act. In view of the foregoing legal position,
tested on the touchstone of the factual matrix of the case, we are
4 ITA No.367/PUN/2023 Arun Tulsidas Sheth
satisfied that the decision taken by the ld. CIT(A) does not
require any interference. The same is, therefore, upheld.
In the result, the appeal is dismissed. Order pronounced in the Open Court on 01st June, 2023.
Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 01st June, 2023 सतीश
आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The respondent 2. 3. The Pr.CIT concerned 4. DR, ITAT, ‘A’ Bench, Pune गाड� फाईल / Guard file. 5.
आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
5 ITA No.367/PUN/2023 Arun Tulsidas Sheth
Date 1. Draft dictated on 31-05-2023 Sr.PS 2. Draft placed before author 31-05-2023 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *