Tax appeals succeed as Tribunal deems assessment proceedings invalid due to lack of search initiation under section 132.

The appeals were filed challenging additions made by the AO under section 153A of the Income Tax Act for Assessment Years 2001-02 & 2002-03. The Tribunal deemed the assessment proceedings invalid as no search was initiated under section 132 against the assessee, as required by section 153A. The additional grounds raised by the assessee were allowed, leading to the quashing of the assessment proceedings. The appeals by the assessee were allowed, and the assessment proceedings were deemed invalid.

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Issues involved: Jurisdiction to initiate proceedings u/s 153A of the Income Tax Act.

Summary:
The appeals were filed against the orders of the Ld.CIT(A)-41, Mumbai confirming additions made by the AO u/s 143(3) r.w.s. 153A for the Assessment Years 2001-02 & 2002-03. An additional ground was raised challenging the validity of the additions made u/s 153A. The assessment orders revealed that a search action u/s 132 was conducted on various premises related to the Balaji Group, but no such action was taken against the assessee. The DCIT confirmed that no search action u/s 132 was conducted on the assessee. Section 153A mandates a search or requisition u/s 132 or 132A for assessing or reassessing income. As no search was initiated u/s 132 against the assessee, the assessment proceedings were deemed invalid. The Tribunal quashed the assessment proceedings, allowing the additional grounds raised by the assessee, rendering other grounds moot.

The appeals filed by the assessee were allowed, and the assessment proceedings were deemed invalid due to the absence of a valid search u/s 132 against the assessee.

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