Case Law Details
DCIT Vs Rigid Conductors (Raj.) Pvt Ltd (ITAT Jaipur)
Held that in the absence of any incriminating material found or seized during the course of search and seizure proceedings, the additions made by the AO during the course of reassessment under section 153A of the Income Tax Act are without jurisdiction.
Facts- A search was conducted in the case of “Chokhi Dhani Group, Jaipur” to which the assessee belongs. Accordingly, notice u/s 153A of the IT Act, 1961 was issued.
During the course of search action, certain ‘developed land allotment letters’, note sheet pages of JDA regarding acquisition & allotment of land & miscellaneous correspondence regarding acquisition of land were found and seized. The seized documents were being analyzed during the assessment proceedings and it was observed that land of the company was acquired and another land was allotted in lieu of compulsorily acquired land. From the seized material it was gathered that the lands belonging to the assessee of Choki Dhani Group were compulsorily acquired by the Jaipur Development Authority ( here in after JDA) , Jaipur in accordance with Central Land Acquisition Act, 1894.
As per settlement made u/s 44 of the JDA Act, 1982 between the Chokhi Dhani Group of Companies & JDA, Jaipur, the Chokhi Dhani Group of companies had surrendered the land under reference in favour of JDA. The assessee company has surrendered its rights in the land acquired by JDA vide letter dated 19.02.2014 addressed to JDA, Jaipur. This was an unconditional offer for surrender of land which is covered within the definition of relinquishment of rights in the land. Also this unconditional surrender of land in favour of JDA is duly covered within the definition of Transfer which includes relinquishment of the assets as per provisions of section 2(47) of the I.T. Act, 1961.
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