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2011 (4) TMI 1329
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....d in the circumstances of the case the Tribunal is justified in law in holding that the assessment cannot be framed u/s.153C of the I.T.Act, 1961 and in turn canceling the assessment framed u/s.153C of the I.T.Act, 1961? B. Whether on the facts and in the circumstances of the case the Tribunal is justified in law in not appreciating the fact that the documents seized from Shri Kantilal M. Patel and Shri Lalit K. Patel belong to the assessee namely Meghmani Organics Limited ? C. Whether on the facts and in the circumstances of the case the Tribunal is justified in law in relying upon the ratio laid down in the case of CIT vs. Sun Engineering Works Pvt. Ltd., 198 ITR 297 (SC) as the aforesaid case is applicable to the provis....
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....he following contentions in its defence. 1) That the papers found during search operations of said Shri Lalit Patel and Kanti K. Patel do not belong to the assessee and therefore, the Assessing Officer could not have invoked the provisions of section 153 of the Act. 2) In any case, there was no undisclosed income of the assessee. 3) The additions were not made in connection with material seized but were with respect to benefits under section 80HHC and 80IB of the Act which was not permissible; and 4) That the claims under section 80HHC and 80IB were not pending for assessment when powers under section 153C were invoked and that therefore, there was no question of abatement of assessment proceedings. By the impugned judgment, ....
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....ngs or transactions with the party who is being searched or whose material is being seized. Otherwise, the provisions may well be seen as violative of the fundamental rights enshrined in articles 14 and 19 of the Constitution. On the other hand, counsel for the assessee opposed the admission of appeals and contended that the issue is no longer res integra. A Division Bench of this Court in the case of Vijaybhai N. Chandrani v. Assistant Commissioner of Income Tax, 2010(231) CTR 474 (Guj.) has ruled against the revenue under similar circumstances. Counsel further submitted that the documents seized did not pertain to any undisclosed income and even after framing the assessment, the Assessing Officer could not come to the conclusion that a....
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....ioned by the Assessing officer having jurisdiction over such other person." Central issue in the present case is, can it be stated that any documents seized or requestioned during search operations belonged to the assessee. In this regard, factual conclusion of the Tribunal which are not seriously in dispute need to be noted. In the impugned order, the Tribunal held and observed that "the Assessing Officer in the assessment order has categorically held that pages 87 to 91 of Annexure A4 seized from Lalit K Patel are his own hand written estimate for the proposed work of the assessee". Additionally, we may refer to the decision of this Court the case of Vijaybhai Chandrani (supra). It was a case where search was conducted in the ....
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.... requisitioned belongs or belong to a person other than the person referred to in Section 153A he shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person. However, there is a distinction between the two provisions inasmuch as under section 153C notice can be issued only where the money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belong to such other person, whereas under Section 158BD if the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or asset....