TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 49
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....inciples of natural justice and copy of 'satisfaction' under section 153C has not been provided to the assessee. Besides this on merits also, assessee has challenged the addition of Rs. 3,52,50,000/- made by the Assessing Officer on account of alleged cash payment made to acquire the property; and further the ld. CIT(A) has erred in law and on facts in not admitting the additional evidences which were filed before him vide application made under rule 46A. 3. Brief facts qua the legal issues raised challenging the validity of the impugned assessment order on various counts, are that, a search and seizure action under section 132(1) was conducted by the Department on 19/2/2008 in the case of M/s B.L. Kashyap & Sons and group of cases. At the time of examination of seized documents seized in the case of M/s B.L. Kashyap & Sons, it was noticed that the assessee-company, i.e., 'M/s EON Auto Industries (P) Ltd.' has made unaccounted cash payments of Rs. 3,37,50,000/- in the property situated at Sy. No.12/2B, Whitefield Village, Krishnarajapura, Hubli, Bangalore. The Assessing Officer in the assessment order has noted that, since the documents seized belong to the assessee-company who wa....
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....bmitted that the Assessing Officer here in this case has passed the assessment order under section 143(3) by treating the assessment year 2008-09 as the year of search in terms of section 153A (1) (b). Admittedly, here it is not the case of a searched person under section 153A, albeit jurisdiction has been acquired under section 153C as 'other person' and therefore, the date of search would be reckoned from the date handing over of the documents, etc., and not the date of search of the person covered u/s 153A. In terms of first proviso to section 153C, reference to the date of initiation of search in the cases of a person covered under section 153C has been construed as reference to the date of receiving the books of account or assets seized or requisitioned by the Assessing Officer, who has the jurisdiction over the person in whose case proceedings under section 153C is being initiated. Here in this case, from a perusal of the date of recording of 'satisfaction' by the ACIT, Central Circle 17, New Delhi, it can be seen that reference date as construed in terms of proviso to section 153C at the most can be reckoned as 28/11/2009 and if that is the reference date, then the assessmen....
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....ection 143(2) has been issued on 1/12/2009; and if one goes by the observation made by the Assessing Officer in the impugned assessment order, then it is 20/11/2009, although it was a notice under section 142(1) and not under section 143(2). Even if the issuance and service of notice is dated 20/11/2009, then also it is barred by limitation in terms of section 143(2) and no addition could have been made in the order passed under section 143(3). He submitted that these grounds and issues were raised before the ld. CIT(A) also vide grounds No.4 to 7 and the ld. CIT(A) has duly considered these grounds and have rejected them after detailed discussion. Thus, these legal grounds are arising from the impugned appellate order. 7. On the other hand, the ld. CIT (DR) has filed detailed written submissions; firstly, on the merits of the addition; and secondly, on issue of jurisdiction and validity of the assessment order. One of the main limb of her arguments was that jurisdictional issue and point of jurisdiction cannot be challenged by the assessee after completion of the assessment and in support of this proposition, she relied upon the judgment of the Hon'ble Delhi High Court in the....
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....n 153A as well as section 153C (assuming anything to the contrary would lead to a situation, where there would be assessments under section 153C that would pertain to assessment years falling after the assessment year relevant to previous year in which search was conducted and this will create an absurdity in the interpretation of the statute. 8. After referring to various provisions contained in sections 153A to 153C, ld. CIT (DR) submitted that point of departure for section 153C from 153A in terms of provisions of section 153C is only for two instances, namely in respect of time limitation for completion of assessment under section 153A and 153C and for the purpose of ascertaining the status of pending assessment or unabated assessment and beyond that nothing should be read under the said provisions. She has also filed detailed written objections on the additional ground filed by the assessee that the order passed under section 143(3) is illegal and bad in law as the order has to be passed under section 153C. 9. However, we are not dealing with her objections on additional grounds, because this issue is already emanating not only from the order of ld. CIT (A) but also from th....
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.... of notice u/s 143(2)/142(1) by ACIT, Central Circle-17, New Delhi. 01.12.2009 8 Assessment completed u/s 143(3) by ACIT, Central Circle-17, New Delhi U/s 143(3) 29.12.2009 Here in this case, assessee has been roped in as a person other than the person referred to in section 153A, i.e. assessee is covered under section 153C, whereby provisions of section 153A has been made applicable, that is, the Assessing Officer was satisfied that any money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to the assessee; or any books of account or documents seized or requisitioned pertain or pertains to the assessee; or any information contained therein relates to a person (i.e. assessee) other than the person referred to in section 153A. If the Assessing Officer of the person searched, records such 'satisfaction', then the documents or assets seized or requisitioned is handed over to the Assessing Officer having jurisdiction over such other person and then the Assessing Officer has the jurisdiction to proceed to rope in the assessee under the provision of section 153C r.w.s 153A, by issuance of notice under section 153C/153A and will proceed to assess....
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....er:- "24. As discussed hereinbefore, in terms of proviso to Section 153C of the Act, a reference to the date of the search under the second proviso to Section 153A of the Act has to be construed as the date of handing over of assets/documents belonging to the Assessee (being the person other than the one searched) to the AO having jurisdiction to assess the said Assessee. Further proceedings, by virtue of Section 153C(1) of the Act, would have to be in accordance with Section 153A of the Act and the reference to the date of search would have to be construed as the reference to the date of recording of satisfaction. It would follow that the six assessment years for which assessments /reassessments could be made under Section 153C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the AO of the Assessee. In this case, it would be the date of the recording of satisfaction under Section 153C of the Act, i.e., 8th September, 2010. In this view, the assessments made in respect of assessment year 2003-04 and 2004-05 would be beyond the period of six assessment years as reckoned with reference to the date of recording of satisfact....
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....of pending assessment proceedings; then the year of search in terms of clause (b) of section 153A(1) would be assessment year 2010-11; and 2008-09 would fall within the category of six assessment years prior to the year of search. In such a situation, assessment for assessment year 2008-09 should have been completed in terms of section 153C read with 153A and not as a regular assessment under section 143(3). The reason being entire concept of abated; unabated as laid down in 2nd proviso to section 153A(1) and other issue of limitation as contained section 153 B has to be seen with reference to such reference date which has different consequences. Like for instance in section 153 B the period of limitation for completion of regular assessment for the year of search and for the assessment falling in each of the six assessment years are different. Thus, in our humble opinion, assessment for assessment year 2008-09 should have been completed under section 153A read with 153C and not as regular assessment under section 143(3), by treating the A.Y. 2008-09 as year of search. 13. Now coming to the alternative argument of the ld. counsel for the assessee that in case regular assessment un....