TaxTMI 
TaxTMI 
2018 (8) TMI 981
X X X X Extracts X X X X
X X X X Extracts X X X X
....on mere technical ground of non-appearance and procedural irregularity by counsel of the assessee and without considering the issue on merits i.e. identity, creditworthiness and genuineness of the following parties evidenced from documents on records: (i) BNB Construction Pvt. Ltd. - Rs. 56,00,000/- (ii) Rajan Gupta - Rs. 9,00,000/- (iii) Bhupinder Singh- Rs. 24,00,000/- (iv) Manoj Sharma- Rs. 4,00,000/- 3. The learned CIT(A), erred in law in confirming addition of Rs. 93,00,000/- without appreciating that fact that initial onus of the assessee were duly discharged and there are no contrary findings to sustain addition other than the procedural/behavioral fault on the part of counsel of the assessee. 4. Any other grounds, including the ground of impropriety and injustice to the assessee that may be raised at the time of hearing with the permission of Hon'ble Bench. 2. During the hearing of the case on 01.08.2018, the assessee filed a letter requesting for admitting additional ground, which is reproduced as under: "That the assessment order passed by learned Assessing Officer is without jurisdiction and void-ab-initio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....issue of admission of the additional ground. In our opinion, the facts in respect of date of search and recording of satisfaction note under Section 153C of the Act are available on record and, therefore, the investigation of the new facts is not required. In view of the above, following the decision of the Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. (supra), we admit the additional ground raised by the assessee. 3. The additional ground raised goes to the root of the matter and, therefore, we have heard both the parties, first on this ground. 3.1 Learned counsel for the assessee submitted that in view of the decision of the Hon'ble Delhi High court in the case of Pr. CIT Vs. Sarwar Agency Pvt. Ltd., reported in (2017) 397 ITR 0400 (Delhi), the six assessment years for reopening under Section 153C of the Act should have been taken as six assessment years preceding the year in which books of accounts or other documents have been handed over by the Assessing Officer of the searched person to the Assessing Officer of the assessee. Further, in the case of Commissioner of Income Tax-7 Vs. RRJ Securities Ltd. (2016) 380 ITR 612 (Del), the Hon'ble Delhi High....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roviso to Section 153C for reaching the conclusion that for reopening of 6 years, the relevant date shall be the date of receiving of books of accounts i.e. 29.08.2013. However if one reads the 153C it is very clear in 153C(1) that "Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A". The first proviso to section 153C is referring to the word "the date of initiation of the search" and "in the second proviso to [sub-section (1) of] section 153A". The second proviso to 153A (1) reads as under: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years [and for the relevant assessment year or years] referred to in this sub-section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate. Thus the second proviso is referring to the abatement proceedings and exact words the date of initiation of the search"" are mentioned in this proviso. Sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e in 153C also which reads as under 153C.(1) -[Notwithstanding anything contained in section 139, sec- tion 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that, - (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person] and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for six assessment years immediately preceding the assessment year relevant to the previou....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Revenue is that the first proviso to Section 153 C refers only to the second proviso to Section 153 A(1) of the Act, which only indicates that any assessment relating to any AY falling within the period of six AYs which is pending as of the initiation of search shall abate. Therefore, the second proviso to Section 153 C is also concerned only with the aspect of abatement of pending assessments. According to the Revenue, this makes no difference to the computation of the block of six years preceding the AY relevant to the previous year /in which the search was conducted. In other words, according to the Revenue, the block period for both the searched person and the 'other person' would remain the same notwithstanding that there may be some delay in transmitting the documents recovered during the search which belong or pertain to the 'other person' to the AO of such other person. 7. The case of the Assessee, on the other hand, is that since in the case of the 'other person' the AO issues notice only subsequent to the notices issued under Section 153 A to the searched person, the starting point for computation of the block period would be the date on ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat may have remained undisclosed in the relevant assessment years..... 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." 9. The said decision in RRJ Securities (supra) has been followed by this Court subsequently in ARN Infrastructure India Ltd. v. Assistant Commissioner of Income-tax, Central Circule-28, New Delhi[2017] 394 ITR 569 (Del.). 10. Mr. Salil....