TaxTMI 
TaxTMI 
2015 (6) TMI 762
X X X X Extracts X X X X
X X X X Extracts X X X X
....und of appeal is raised for the first time before Honourable Tribunal as under: On the facts and in circumstances of the case as well as law on the subject, the Id. assessing officer has erred in issuing notice u/s. 153C and passing assessment order u/s.143(3) r.w.s. 153C when no valuable/material was found in the course of search of the third person. It is therefore prayed that the assessment made u/s.143(3) r.w.s. 153C may please be quashed. 2. Your Honours are requested to kindly admit the above additional ground in the interest of natural justice, equity and fair play as its omission in the main ground of appeal attached with Form 36 is purely unintentional. As the said ground pertains to legal issue the same may kindly be admitted in view of Honourable Supreme Court decisions in case of NTPC v. CIT [229 ITR 383] and Jute Corporation of India Ltd. v. CIT [187 ITR 688]. The assessee shall always remain grateful for the act of kindness." 3. The assessee submits in the course of hearing that its abovesaid additional grounds are liable to be admitted being a legal plea as per the abovestated case laws. The Revenue strongly objects admission of the assessee's additional gro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T. Act was conducted m your case/in the case of Radha Madhav Group of Vapi & Manish Group of Surat on 24/09/2008. Whereas I am satisfied that money / bullion / jewellery / other valuable articles or things and / or books of account / documents seized belongs to you. Therefore, your income six assessment years immediately preceding the assessment year relevant to previous year in which the search was conducted i.e. from A.Y. 2003-04 to A.Y. 2008-09 is required to be assessed/reassessed in accordance with the provisions of section 153C of the Act. You are, therefore, required to furnish return of the company's income u/s. 153C of the IT. Act 1961 for A.Y. 2006-07 being one out of the above six assessment years in respect of which you are assessable under the Income-Tax Act, 1961. The return should be filed in the appropriate form as prescribed in Rule 12 of the Income-Tax Rules, 1962. It should be duly verified and signed in accordance with the provisions of section 140 of the said Act and delivered at my office as mentioned above within THIRTY DAYS from the service of this notice. &nbs....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... [ P.V. YADAV] ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3, Surat" 6. The assessee filed a fresh return on 13.3.2009 reiterating the income already admitted. The Assessing Officer completed a regular assessment on 31.12.2010 adding deemed dividends qua an unsecured loan received from the searched entity. The assessee preferred appeal challenging validity of section 153C proceedings in absence of any incriminating material as well as on merits. The CIT(A) in his order has upheld the impugned addition to the extent indicated hereinabove. And also observed that in case of a search, regular assessment proceedings abate and only the impugned proceedings have to be taken recourse to u/s.153C of the Act. This leaves the assessee aggrieved. 7. We have heard rival contentions and gone through the case file. Relevant facts as well as the Assessing Officer's satisfaction note before proceeding u/s.153C against the assessee already stand narrated / reproduced hereinabove. We are not repeating the same for the sake of brevity. The Assessing Officer's reasons nowhere pin point any money, bullion, jewellery or other valuable articles or thing or books of account or documents seized or requisitioned to be belonging to the assessee/other p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A:]." 9. From the above, it is evident that action under Section 153C can be taken in respect of any other person than the person searched if the Assessing Officer of the person searched is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents belong to a person other than the person searched. In such circumstances, he shall hand over to the Assessing Officer of such other person money, bullion, jewellery or other valuable article or thing or books of account or documents. Thereafter, the Assessing Officer of such other person shall proceed against th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2A of the Act." 11. Though the above decision was given by their Lordships of the Hon'ble Apex Court with reference to Section 158BD of the Incometax Act; however, the language of Section 158BD and Section 153C of the Income-tax Act are almost similar. Therefore, in our opinion, the ratio of the decision given with reference to Section 158BD would be squarely applicable while interpreting Section 153C. 12. In the above legal background, let us now examine the facts of the assessee's case so as to find out whether the jurisdiction assumed u/s 153C is valid. The satisfaction note recorded by the Assessing Officer reads as under:- "Name of the assessee : Smt. Rekhaben K. Thakkar Prop. M/s. Durga Finance A.Y. : 1999-00 to 2004-05 Satisfaction ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; Dy. Commissioner of Income Tax &....