Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh

Parties Involved

Facts Summary

The assessee belongs to Homeland Group, Mohali where a search and seizure operation was carried out on 26/02/2020. During the search, various incriminating documents were found and seized from the premises of the group. The assessee submitted that the original return declaring income of Rs. 3,60,550/- filed on 26/01/2018 may be treated as return in response to notice under section 153A of the Act. The Assessing Officer (AO) stated that a handwritten signed Memorandum of Understanding (MOU) was seized from the premises of Shri Kapil Romana, which was evidence of the separation of joint business ventures of the members of the two groups. The AO further stated that for the purchase of AB Chem India, a goodwill of Rs. 4.00 Crores was paid by the assessee to Hemant Group led by Shri Hemant Jindal. The assessee submitted that no transaction of Rs. 4.00 Crores took place and a fresh partnership cum retirement deed was executed. The AO concluded that the amount of Rs. 4.00 Crores is to be treated as unexplained money under section 69A r.w.s 115BEE of the Act and brought to tax.…

Legal Issues

• 1. Deletion of addition of Rs. 4.00 Crore made by the AO
• 2. Deletion of addition of Rs. 4.00 crore made u/s 69A r.w.s. 115BBE of the Income Tax Act 1961

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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