2017 (3) TMI 688

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....(Appeals) erred both in law and on facts in upholding the assessment made u/s 143(3) r.w.s 153C of the IT Act by the Ld.AO. 2. The Ld.CIT(A) ought to have annulled the assessment order passed u/s 143(3) r.w.s 153C of the Act., as the material found in search is not an incriminating document but an open and public document. 3. The Ld.CIT erred in confirming the addition made by the Ld.AO of Rs. 3,04,60,000/- towards the long term capital gain. 4. The Ld.CIT erred in upholding the order of the Ld.AO by considering the fair market values instead of considering the sale proceeds received by the assessee as per the agreement for the computation of long term capital gain. 5. The Ld.CIT (A) erred in upholding the additions made by the ....

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....essing Officer appreciating that invoking of the provisions u/s 153C without recording satisfaction by him as well as by the Assessing Officer having jurisdiction over the searched party becomes invalid as held by the Hon'ble A.P High Court in the case of CIT Vs. M/s Shettys Pharmaceuticals & Biologicals Ltd in ITTA Nos.662 of 2014 dated.26-11-2014. 12. The Ld. CIT(A) ought to have appreciated the fact that no addition can be made to the income of the assessee u/s 143(3) r.w.s 153C of the Act without there being any incriminating material found during the course of the search. Case Law: DCIT vs. Midwest Gold Private Limited 13. Without prejudice to the above ground, the ld. CIT (A) ought to have appreciated the fact that material ....

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....however, supported the orders of the authorities below. 5. Having regard to the rival contentions and the material on record, we find that the assessments in the case of the assessee and also in the case of the other assessees in ITA No.1082/Hyd/2014 & Others, are pursuant to the same search in the case of M/s. MBS Jewellers P Ltd on 11.03.2010. We find that at Paras 2.1 to Para 4 of the order, the Tribunal has considered the issue in detail and has observed as under: "2.1. The Ld. Counsel for the assessee, has also filed the charts in all the above cases against the assessment orders under section 143(3) read with section 153C of the Act reproducing the order sheet entries in the case of all these assessees for invoking the provision....

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....hing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A. Thereafter, the Assessing Officer having jurisdiction over third party on receipt of the seized material or books of account or document being handed over to him shall record his own satisfaction after examining the same independently without being influenced by the satisfaction of the seizing officer. In other words it is not an automatic action. Satisfaction of two officers is missing. In this connection the text of the order of the Assessing Officer is that a search and seizure operation under section 132 was carried out in the group case of TYG and others on 25-3-2010. During the course of search....