Case Law Details
Late Shri Harshad S. Mehta Vs DCIT (ITAT Mumbai)
These cross appeals are arising out of the different orders of Commissioner of Income Tax (Appeals)-52, Mumbai [in short CIT(A)], in appeal Nos. CIT(A)-52/IT/DC-CC4(1)/50/2016-17, CIT(A) 52/DCIT-CC- 4(1)/432/2007-08, CIT(A)-52/IT/DC-CC4(1)/305,306/2015-16, dated 28.02.2017, 04.07.2017, 24-03-2017,2 28-06-2017. The Assessments were framed by the Dy. Commissioner of Income Tax, Central Circle 4(1), 23 Mumbai (in short ‘DCIT’/ AO) for the A.Ys. 1992-93, 1993-94 vide orders dated 28.03.2016, 17.12.2007, 22.03.2016, 15.03.2016 under section 254 read with section 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
In ITA No. 5702 & 6028/Mum/2017
2. First we shall deal with the appeals of Late Harshad S. Mehta through Legal Heir Smt. Jyoti H.S. Mehta for AY 1992-93 in ITA No.5702/Mum/2017 of assessee appeal and ITA No.6028/Mum/2017 of Revenue appeal.
3. Before dealing with these appeals, we want to narrate the brief background of the case. Brief history of all these appeals facts, events, chronology of dates and events & circumstances are identical. Hence we need not to repeat the same in each appeal but in this one only. Hence, these para 3 to 5 are dedicated to history and background of this group of cases. The assessee, late Shri Harshad S. Mehta belonged to Harshad S. Mehta Group of Cases engaged in the business of brokerage as a member of Bombay Stock Exchange (BSE), a notified person under the special court (Trial of Offences Relating to Transactions in Securities) Act, 1992. There was a search and seizure operation u/s 132 of the Act conducted on the assessee group of cases on 28.02.1992. During the course of search, various incriminating material was found and seized including share certificates and documents relating to investments in shares etc. Later a search action was carried out in this group of cases by CBI on 04.06.1992 and similar documents were seized by them also. The assessee filed original return of income on 29-10-1993 for the relevant AY 1992-93 but the same was later rejected as defective by the AO under section 139(9) of the Act. In the belated return of income filed in response to notice under section 142(1) of the Act, the assessee declared total income of ₹ 6,84,08,000/-. The original assessment was framed by the AO under section 144 of the Act vide order dated 22.02.1995 determining total income of ₹ 2014,04,65,298/- after making following additions and disallowances: –
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