2019 (3) TMI 628

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.... 2. The facts of the case are that proceedings under Section 153C were initiated by the Assessing Officer on the basis of search in the case of M/s Jagat Agro Commodities Pvt.Ltd. and M/s Jagat Projects Ltd. The assessment was completed u/s 143(3)/153C at `5,98,52,000/- as against nil income declared by the assessee. Before the learned CIT(A), the assessee challenged the initiation of proceedings under Section 153C as well as the addition on merits. Learned CIT(A) upheld the initiation of proceedings u/s 153C but deleted the addition of `5,98,52,000/- made by the Assessing Officer. The Revenue, aggrieved with the deletion of the addition, is in appeal before us while the assessee, by filing the cross-objection, has challenged the validity o....

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....on of Hon'ble Jurisdictional High Court would be squarely applicable. 4. Learned CIT-DR, on the other hand, relied upon the order of learned CIT(A) so far as the question of validity of initiation of proceedings under Section 153C is concerned. He stated that once a document is found for any assessment year, the proceedings under Section 153C need to be initiated for a period of six years. He relied upon the decision of learned CIT(A) on this aspect and stated that proceedings under Section 153C were validly initiated and the same should be upheld. 5. We have carefully considered the submissions of both the sides and perused the material placed before us. We find that in paragraph 8, learned CIT(A) has recorded the finding "The docume....

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....Agro Commodities Pvt.Ltd. and M/s Jagat Projects Ltd. at 802, Amba Deep Building, K.G. Marg, New Delhi, Audit Report inclusive of financial accounts for the year ended on 31.03.2009 were found and seized by the search party J-5. The seized documents appears at Page No.190 to 206 of Annexure A-9 and belongs to M/s Anush Finlease & Construction Pvt.Ltd. 2. The case of M/s Anush Finlease & Construction Pvt.Ltd. has been centralized to this Circle vide letter F.No.CIT-I/Centralisation/2011-12/2100 dated 17.11.2011. 3. I am, therefore, satisfied that the documents, referred to above belong to M/s Anush Finlease & Construction Pvt.Ltd. warranting action u/s 153C in this case." 6. Thus, it is not in dispute that the only material on the basis....

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....y the assumption of jurisdiction under Section 153 C of the Act the documents seized must be incriminating and must relate to each of the AYs whose assessments are sought to be reopened. Since the satisfaction note forms the basis for initiating the proceedings under Section 153 C of the Act, it is futile for Mr Manchanda to contend that this requirement need not be met for initiation of the proceedings but only during the subsequent assessment." 7. That in paragraph 31 above, their Lordships have pointed out the document must be incriminating and it must relate to the assessment year whose assessments are sought to be reopened. In this case, admittedly, the document was relating to assessment year 2009-10 while the assessment reopened i....