CIT v. PC Chemicals - Taxpublishers.in

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers2013 TaxPub(DT) 0030 (Del-HC) : (2013) 359 ITR 0129 : (2012) 211 TAXMAN 0166 INCOME TAX ACT, 1961 --Income from undisclosed sources--Addition under section 69A Opportunity of hearing not given to assessee--A search and seizure operation was carried out in one B's premises and on the basis of documents/material collected during search assessing officer initiated reassessment proceeding in assessee's case on the ground that those document/materials also pertain to assessee's case and reassessment was made on the absis of statements of certain persons without giving any opportunity to assessee to cross examination. *Held:* Denial of opportunity to assessee to cross examine witness and rebut the evidence as done by assessing officer had not shown in assessment order what were the materials/documents adverse to assessee issue is remitted back to assessing officer to consider afresh to make addition under section 69a. Once the assessing officer was of the opinion that the relevant materials and documents necessitated a conclusion and he even proceeded to state (as he did in the assessment order) that such materials were shown or disclosed to the assessee's representative - it was incumbent upon him to discuss and advert to those facts. The assessee disputed that in fact such material was ever disclosed. This court does not wish to enter into this controversy except to state that since the assessing officer was of the distinctive opinion that the material obtained during the search of B. and his associates premises yielded some relevant materials, he ought to have disclosed them to the assessee. But that did not happen. [Para 4] The assessment order is bereft of any discussion as to what were the materials adverse to the assessee and what was the inference that could be drawn in the light of those materials and documents. Consequently, even while court does not fault the Tribunal's reasoning about the denial of opportunity to the assessee, the outcome has to be slightly different especially in the light of the decision of the Supreme Court in M. Pirai Choodi. Resultantly these matters have to be remitted for fresh consideration by the assessing officer who shall proceed to make available the necessary documents, adverse to the assessee, and proceed in accordance with section 69A. Income Tax Act, 1961 Section 69A SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 0030 (Del-HC) : (2013) 359 ITR 0129 : (2012) 211 TAXMAN 0166

INCOME TAX ACT, 1961

--Income from undisclosed sources--Addition under section 69A Opportunity of hearing not given to assessee--A search and seizure operation was carried out in one B's premises and on the basis of documents/material collected during search assessing officer initiated reassessment proceeding in assessee's case on the ground that those document/materials also pertain to assessee's case and reassessment was made on the absis of statements of certain persons without giving any opportunity to assessee to cross examination. Held: Denial of opportunity to assessee to cross examine witness and rebut the evidence as done by assessing officer had not shown in assessment order what were the materials/documents adverse to assessee issue is remitted back to assessing officer to consider afresh to make addition under section 69a.

Once the assessing officer was of the opinion that the relevant materials and documents necessitated a conclusion and he even proceeded to state (as he did in the assessment order) that such materials were shown or disclosed to the assessee's representative - it was incumbent upon him to discuss and advert to those facts. The assessee disputed that in fact such material was ever disclosed. This court does not wish to enter into this controversy except to state that since the assessing officer was of the distinctive opinion that the material obtained during the search of B. and his associates premises yielded some relevant materials, he ought to have disclosed them to the assessee. But that did not happen. [Para 4] The assessment order is bereft of any discussion as to what were the materials adverse to the assessee and what was the inference that could be drawn in the light of those materials and documents. Consequently, even while court does not fault the Tribunal's reasoning about the denial of opportunity to the assessee, the outcome has to be slightly different especially in the light of the decision of the Supreme Court in M. Pirai Choodi. Resultantly these matters have to be remitted for fresh consideration by the assessing officer who shall proceed to make available the necessary documents, adverse to the assessee, and proceed in accordance with section 69A.

Income Tax Act, 1961 Section 69A