Ita/186/2016 Of Principal Commissioner Of Income Tax-3 Ludhiana v. Harinder

IN THE HIGH COURT OF PUNJAB AND HARYANAAT CHANDIGARH Sr. No.1022 ITA No.186 of 2016 (O&M)Date of decision: 10.05.2018 The Pr. Commissioner of Income Tax-3, Ludhiana....Appellant VerTSU Harinder ....Respondent CORAM:HON'BLE MR. JUSTICE RAJESH BINDALHON'BLE MR. JUSTICE DEEPAK SIBAL * * * Present:Mr. Rajesh Katoch, Advocatefor the appellant. * * * RAJESH BINDAL, J. Revenue is in appeal against the order dated 18.12.2015 passedby the Income Tax Appellate Tribunal, Division Bench, Chandigarh (forshort — ‘the Tribunal’) passed in ITA No.506/CHD/2014. The appealpertains to the assessment year 2008-09 and seeks to raise the followingsubstantial questions of law:- 1)Whether on the facts and in circumstances of thecase and in law, the Hon'ble ITAT was right indeleting addition of Rs.1,28,36,000/- made by theAssessing Officer u/s 69 of the Income Tax Actand in deleting the addition of Rs.2,98,39,000/- onaccount of profit on sale of plots.case and in law, the Hon'ble ITAT was right indeleting addition of Rs.1,28,36,000/- made by theAssessing Officer u/s 69 of the Income Tax Actand in deleting the addition of Rs.2,98,39,000/- onaccount of profit on sale of plots. Whether on the facts and in the circumstances ofthe case and in law, the Hon'ble ITAT has erred ingranting relief to the assessee holding that sameaddition has been made in the case of M/s BaseraRealtors Pvt. Ltd. without appreciating that theAssessing Officer has formed opinion based on evidences gathered during assessment proceedingsin the form of statement of sellers and submissionof the directors of M/s Basera Realtors Pvt. Ltd.before the DCIT, Central Circle and withoutappreciating that the assessment in the case of M/sBasera Realtors Pvt. Ltd. has not attained finality.” Learned counsel for the revenue submitted that search wasconducted on the premises of Basera Realtors Pvt. Ltd. During the course ofassessment proceedings, Managing Director of Basera Realtors Pvt. Ltd,made a statement that 50% of unexplained investment belong to therespondent-assessee. The information was passed on to the AssessingOfficer. Assessment proceedings under Sections 147/148 of the Income TaxAct, 1961, (for short — ‘the Act') were completed. The present proceedingsarise out of those assessment orders. Order passed by the Assessing Officerwas revised by the Commissioner of Income Tax (Central), Ludhiana, inexercise Of powers under Section 263 of the Act. It was opined that theentire undisclosed investment is to be assessed at the hands of BaseraRealtors Pvt. Ltd. In the appeal filed by Basera Realtors Pvt. Ltd., theTribunal upheld the order passed by the revisional authority. As per the information available with the Department, BaseraRealtors Pvt. Ltd. has not challenged the order passed by the Tribunalupholding the order passed by the Commissioner of Income Tax (Central),Ludhiana, under Section 263 of the Act. In view of the aforesaid factual matrix, once the entireundisclosed investment has been assessed in the hands of Basera RealtorsPvt. Ltd., the assessment of the same amount in the hands of the assessee| ITA No.186 of 2016 (O&M) will not be justified. Keeping in view of the aforesaid facts, no substantial questionsof law arise in the present appeal and the same is, accordingly, dismissed, (Rajesh Bindal)JudgeMay 10, 2018(Deepak Sibal)Jyoti IJudgeWhether speaking/reasonedYesWhether reportableYes/No