TaxTMI 
TaxTMI 
2016 (8) TMI 731
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....case. 3. The order of assessment is also bad in law in as much as, the search in the case of the searched person i.e., M/s. PRATHIBHA JEWELLERY HOUSE, wherefrom the impugned proceedings resulting in the impugned order is made is bad in law as it is ultra-vires the provisions of Section 132[1][a], [b] and [c] of the Act and any seized material or asset alleged to have been seized, if any, belonging to the appellant during the course of the said search even for argument's sake would not clothe the learned A.O. the necessary jurisdiction to invoke the provisions of section 153C of the Act, having regard to the parity of the ratio of the Hon'ble Supreme Court in the case of AJITH JAIN reported in 260 ITR 80 and the Hon'ble Karnataka High Court in the case of C. RAMAIAH REDDY reported in 339 ITR 210. 4. The invocation of Section 153C of the Act, is misconceived and illegal as the sine-qua-non mandatory requirement for invoking the jurisdictional provisions of section 153C of the Act, being seizure of any ASSET or DOCUMENT belonging to the appellant being absent, the invocation of the jurisdiction u/s.153C of the Act, by issuance of notice u/s.153C of the Act, is illega....
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.... appreciate that neither the income-tax payable or paid or the interest payable or paid for the default or for the delay in paying the income-tax is not an allowable item of expenditure and therefore, on the reverse logic neither the refund receivable alongwith interest, which is only a measure of refund receivable is not income and therefore, the socalled interest granted is only a measure of the refund received is not any income, as such liable to tax. 10. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest u/s. 234-A, 234-B and 234-C of the Act, which under the facts and in the circumstances of the appellant's case and the levy deserves to be cancelled. 11. Without prejudice to the above, the learned A.O. ought to have given credit to the TDS, Advance-tax and taxes paid u/s.140A of the Act, if any, and after giving credit only to such payment, he ought to have calculated the interest if any, leviable u/s.234A, 234B and 234C of the Act, as the levy under these sections though mandatory are compensatory in nature having regard to the ratio of the decision of the Hon'ble Supreme Cour....
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....e relevant assessment year is 2012-13. Therefore, the relevant six assessment years preceding to the assessment year 2012-13 are upto A.Y. 2006-07. Therefore, the AO has no jurisdiction to frame the assessment for the AY 2005-06. 6. Per contra, the ld. DR contended that the AO has jurisdiction to frame the assessment over the impugned assessment year 2005-06. 7. Having carefully examined the relevant provisions of the Act in the light of the rival submissions, I find that this ground was never raised before the lower authorities, therefore they had no occasion to adjudicate the same; but before me it is raised first time. For the sake of reference, I extract the relevant provisions of section 153A and proviso to section 153C hereunder:- "153A. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be spec....
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.... 132A in the second proviso to sub-section of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. Undisputedly, the AO has initiated the proceedings u/s. 153C of the Act on 8.8.2011 relevant to previous year 2011-12 and the A.Y. 2012-13. Therefore, the assessment years for which the AO has jurisdiction to frame the assessments are from AY 2011-12 to AY 2006-07. Since in the impugned AY 2005-06 the AO has no jurisdiction to frame the assessment in terms of the aforesaid discussion, I hold that the assessment framed for AY 2005-06 over the assessee on account of search is not valid and I therefore quash the assessment framed consequent to the search u/s. 153C of the Act. 9. In the remaining appeals, during the course of hearing, the ld. counsel for the assessee raised serious objection that no satisfaction was recorded by the AO having jurisdiction over the searched person to the effect that the incriminating material was found during the course of search which relate to the assessee. But during the course of hearing, when a spe....
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....e seized u/s. 132(8) of the Income-tax Act and the seized material contained documents belonging to the assessees. In the seized material, the facts relating to receipt of interest on refund of income tax was found and during the course of assessment proceedings, the assessee has not established that he has even offered the interest on refund of income-tax to tax. Therefore, the AO rightly made the addition of the same which was later on confirmed by the CIT(Appeals). 13. During the course of hearing, the ld. counsel for the assessee has placed heavy reliance upon the judgment of Hon'ble jurisdictional High Court in the case of CIT v. IBC Knowledge Park Pvt. Ltd. in ITA Nos.403/2009 & Ors. Dated 28.04.2016, in support of his contentions that the satisfactory note of the AO having jurisdiction over the searched person is required to be supplied to the assessee and that without the incriminating evidence found during the course of search, assessment proceedings u/s. 153C cannot be initiated. On a careful perusal of this judgment, I do not find any such type of findings of the Hon'ble High Court. The Hon'ble High Court has reiterated the legal position that before initiating th....