TaxTMI 
TaxTMI 
2015 (11) TMI 1373
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....ajan and Shri S. Manivannan on 4.7.2006. The ld. Counsel clarified that no search was conducted in the premises of the assessee, therefore, assessment was framed u/s 153C of the Act. Referring to the assessment orders, the ld. Counsel submitted that the assessee filed the return of income in the regular course for the assessment years 2001-02 to 2006-07. In fact, the time limit for issuing notice u/s 143(2) for assessment year 2004-05 expired on 9.10.2006. The time limit for issuing notice u/s 143(2) has also expired on the date of search for the assessment years 2001-02, 2002-03 and 2003-04. The ld. Counsel submitted that for assessment year 2005-06, return of income was in fact filed on 10.10.2005 and the time limit available for issuing notice u/s 143(2) was upto 30.9.2006. Similarly, for the assessment year 2006-07 also the time limit was available for issuing notice u/s 143(2). According to the ld. Counsel, for the assessment years 2001-02 to 2004-05, the time limit for issuing notice u/s 143(2) has expired on the date of search, therefore, the assessment proceedings are not pending. In other words, by operation of law, according to the ld. Counsel, the assessment proceedings ....
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....ls of the depositors could not be furnished by the assessee before the lower authorities. For the assessment year 2006-07, the assessee offered a sum of Rs. 50 lakhs with regard to non-genuine deposits. In addition to that, the assessee has also offered a sum of Rs. 5 lakhs towards interest pertaining to these deposits. According to the ld. DR, since the computerized statement of the depositors was found, the Assessing Officer has rightly assumed jurisdiction u/s 153C of the Act. 6. We have considered the rival submissions on either side and also perused the material available on record. It is not in dispute that the assessee is a partnership firm. There was a search in the residential premises of the partners of the firm Shri S. Soundararajan and Shri S. Manivannan on 4.7.2006. Admittedly, no search was conducted in the premises of the assessee-firm. In fact, a survey was conducted u/s 133A of the Act in the premises of the assessee-firm. There is no reference either in the assessment order or in the CIT(A)'s order about the material found during the course of search operation in the case of Shri S. Soundararajan and Shri S. Manivannan. It is not in dispute that the assessee fi....
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....be a new material. It is not the case of the Revenue that any material relating to receipt of deposit was found in the premises of the partners during the course of search operation. Admittedly, during survey operation, the computer printed list of depositors was found. Therefore, this Tribunal is of the considered opinion that the material found during the survey operation cannot be made use of while computing block assessment consequent to the search operation u/s 132 of the Act. 9. We have gone through the provisions of section 153A of the Act. Second proviso to sec. 153A of the Act clearly says that assessment or reassessment shall be framed for the six assessment years which are pending on the date of search u/s 132 of the Act. This section further clarifies that the pending assessment shall abate and the Assessing Officer has to pass a composite order for all incomes including the undisclosed income found during the course of search operation. As discussed earlier, for the assessment year 2004-05, the time limit for issuing notice u/s 143(2) expired on 30.9.2005. Similarly, for the assessment years 2001-02, 2002-03 and 2003-04 also time limit expired on the date of the sea....
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....of the addition for the assessment year 2005-06, the assessee has shown in the balance sheet the deposits of Rs. 1,41,67,695/-. Out of this, Rs. 17,56,932/- pertains to deposits from relatives. The Assessing Officer has simply made addition on the basis of his finding recorded for assessment year 2001-02. We have gone through the assessment order for assessment year 2001-02. The Assessing Officer, referring to the statement said to be recorded from eight persons by the Addl. Commissioner of Income-tax during the course of survey operation, found that the deposits were non-genuine. It is well settled principles of law that during the course of survey, the Revenue authorities are not empowered to record any sworn statement. Therefore, the statement recorded during the course of survey operation cannot be placed reliance in the assessment proceedings. Referring to another 28 deposits, the Assessing Officer observed that the letters sent to the 28 depositors were returned unserved with postal endorsement Rs.no such addressees'. It is not known whether the deposits made by 8 persons who denied deposits were continuing for the assessment years 2005-06 and 2006-07. If the fresh deposits w....