2016 (7) TMI 700

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....(1)(c ) of the Act. For the sake of convenience, we are adjudicating all the appeals by a single order. ITA/2337/M/2013-AY 2002-03: 2. An action u/s. 132/133A was carried out on 6. 9. 2007 in the business premises of the assessee-group. During the search and survey proceedings certain documents were impounded/seized. A notce u/s. 153A was issued to the assessee on 23. 8. 2008. In response to the notice a return of income was filed on 24. 8. 2008, declaring total income of Rs. 35. 23 crores. The Assessing Officer(AO)completed the assessment , u/s. 153A r. w. s 143(3) of the Act, on 31. 12. 2009, determining the income of the assessee at Rs. 35. 78 crores. The AO also initiated penalty proceedings u/s. 271(1)(c) of the Act. 3. During....

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....tions made/upheld by the AO/FAA were challenged by the assessee before the Tribunal, that the ITAT had allowed the appeal of the assessee and that had reversed the order of the FAA. (ITA2383-2385/ Mum/ 2011-AY2002-03 to 2004-05, dt. 16. 7. 15). The Departmental Representative(DR)left the issue to the discretion of the Bench. We find that the disallowance made by the AO with regard to depreciation on goodwill, was deleted by the ITAT, while deciding the quantum appeal(supra). We would like to reproduce the relevant portion of the order and same reads as under :- "4. 1. The assessment for A. Y 2002-03 was completed by disallowing bad debts claimed Rs. 8, 76. 448/-, depreciation on goodwill Rs. 35, 39, 132/-, depreciation on com....

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.... on search. If there was no incriminating material found during the search then the Tribunal was right in holding that the power u/s. 153A being not expected to be exercised routinely, should be exercised if the search revealed any incriminating material. If that was not found then in relation to the second phase of three years, there was no warrant for making an order within the meaning of this provisions. " Respectfully following the decision of the Hon'ble Jurisdictional High Court, we set aside the order of the Ld. CIT(A) and quash the impugned assessment orders 8. Since we have decided the issue in favour of the assessee and against the Revenue on the point of Jurisdiction, we do not find it necessary to decide the ot....