TaxTMI 
TaxTMI 
2014 (5) TMI 1059
X X X X Extracts X X X X
X X X X Extracts X X X X
....C were bad in law and assessment should have been made u/s 153A of the Act despite the fact that warrant of authorisation was issued in the name of three persons namely M/s Ashok Pan Products (P) Ltd, M/s Mudit Impex & M/s Mudit Finance (P)Ltd. 2. That the Ld. CIT (A) has erred in law and on fact in not honouring the decision of Hon'ble High Court in the case of CIT Vs. Vandana Verma where the Hon'ble Court has come to the conclusion that in case of warrant issued in joint names, proceedings u/s 153A could be initiated in the case of AOP of the above named three persons. As a natural corollary in case of assessee only an action u/s 153 could have been taken. 3. That the Ld. CIT (A) has erred in law and on fact in c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ears 1998-99 to 2003-04 within 15 days from the date of receipt of the said notice. But no action was taken by the Assessing Officer either to withdraw the said notice or complete the assessment thereunder. Subsequently, another set of notices under section 153C read with section 153A of the Act were issued by the same Assessing Officer requiring the assessee to file the return of income for assessment years 1998-99 to 2003-04. In compliance to the said notices, the assessee filed the reply stating that the return of income filed under section 139(1) of the Act may be treated as return filed in compliance to the notices issued under section 153C read with section 153A of the Act. The assessee also contended that the notices issued under sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....der the law. It appears from the records that by inadvertence, the assessment orders in these cases could not be passed. And thus, to resuscitate these time barred cases, the AO took the route of issuing the notices u/s 153C of the Act, which was totally unwarranted as the records show that there was no fresh material which could prompt the AO to initiate such proceedings. Further, if the AO had been really sure as to what he did, he would have passed a speaking order controverting the objections raised by the appellant during the course of such assessment proceedings, which was never done. Still further, the AO has mentioned in the assessment order that the documents/material related to the appellant companies were received only during F.Y....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on above, I am of the considered view that: (i) In view of the appellant being the principal search party, invoking of provisions of 153C was bad in law; the assessment should have been completed under Section 153A of the Act. (ii) that there is no material available on record which could prompt the AO in taking action u/s 153C of the I.T. Act. (iii) since all the material (based on which action u/s 153C has been initiated) was available with the AO right from the very beginning, the assessments in the instant case u/s 153C read with section 153A/143(3) had been time barred on 31.03.2006. 5.1.1 Thus on all these counts, the assessment orders are liable to be annulled, which I do so. 5.2 Since I h....