S. 143(3) : Assessment-Survey-Settlement Commission-Housing project-On money-Natural justice-Order passed by the Assessing Officer only on the basis of rejection order of the Settlement commission was not valid-The Assessing Officer is directed to pass the order in accordance with law after considering the submissions of the Assessee. [S. 80IB(10), 133A, 245D(1), 245D(4)]
During course of survey certain materials relating to unaccounted receipts for sale of residential flats were impounded. The assessee admitted unaccounted income. The assessee filed an application before the Settlement Commission which was allowed u/s. 245D(1) of the Act. The application was rejected while passing the order u/s. 245D(4) of the Act on the ground that the assessee has not disclosed the true income. The rejection application of the Settlement Commission was affirmed by the High Court. The Assessment proceedings which were earlier abated got resumed and the Assessing Officer proceeded with the same. In the Course of assessment proceedings the assessee made the claim u/s. 80IB(10) of the Act. The Assessing officer rejected the claim of the assesee u/s. 80IB(10) of the Act, only on the ground that the Settlement Commission has dismissed the petition and assessed the gross on money on estimate basis as income of the assessee. On appeal the CIT(A) affirmed the order of the Assessing Officer. On appeal to the Tribunal held that order passed by the Assessing Officer which was affirmed by the CIT(A) was only on the basis of rejection order of the Settlement commission was not valid. The Assessing Officer is directed to pass the order in accordance with law after considering the submissions of the Assessee. (ITA No. 3128 /Mum/2018, 3243/Mum/2018 dt. 22-6-2022 Bench ‘D’). (AY. 2013-14, 2014-15)
Rashmi Infrastructure v. Dy. CIT (Mum.)(Trib.) www.itatonline.org
[Coram : Hon’ble Shri M. Balaganesh, AM and Hon’ble Shri Pavan Kumar Gadale, JM]