TaxTMI 
TaxTMI 
2017 (8) TMI 1540
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....n, these appeals were heard together and are disposed off by this common order for the sake of convenience. 3 Brief facts extracted from ITA No.7/Coch/2015 for the assessment year 2002-03 are that a search action u/s 132 of the I T Act, 1961 was carried out on 11.10.2007 in the case of M/s Parthas Infopark Pvt Ltd, Trivandrum and others. The assessee is also covered under the search action conducted in the group of M/s Parthas Infopark Pvt Ltd., and accordingly, the case of the assessee was assigned to Central Circle-II, Trivandrum vide order in C.No.CR.43/CIT( C)- CHN/2008-09 dated 20.1.2009. Consequent to search, notice u/s 153A of the Act was issued and called for return of income for the six years immediately proceeding to the assess....
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....1.2016 raising 4 grounds of appeal challenging the validity of proceedings completed u/s 153A of the I T Act 1961. The relevant additional grounds raised in the appeal are extracted below: "1. It is respectfully submitted that the asst. order passed u/s.144 r.w.s. 153A is arbitrary, illegal and unsustainable. It is submitted that section 153A has been wrongly invoked in the appellant's case. 2. The appellant had no connection whatsoever with the transactions between M/s.Parthas Infopark Pvt. Ltd. and others with regard to land dealings except that the appellant's father-in-law, Shri C.P. Narayanan Nair was a party to the land transaction. Once the search is illegal and not on bona fide grounds, the Consequential bl....
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....hereafter completed by making estimated additions to the declared income without any incriminating material found during the course of search. The ld AR further submitted that though the assessee has not taken the issue of validity of search action before the lower authorities, the same may be taken at any time before the ITAT in view of the fact that the issue is purely a legal issue which involved substantial question of law. The ld AR further submitted that the legal issue raised by the assessee by way of additional grounds of appeal emanates from the fact already on record and no new facts or evidence has been relied upon or brought, in support of the additional grounds. Therefore, the same may be admitted and adjudicate the issue as pe....
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....ion, jewellery or other valuable articles or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not been or would not be, disclosed for the purposes of the tax. In this case, the facts borne out from the records clearly indicate that no incriminating material was found during the course of search which indicates undisclosed income in the hands of the assessee. Therefore, search proceedings initiated u/s 132 of the Act in the hands of the assessee and consequent assessment proceedings are bad in law and liable to be quashed. 9 Having heard both the parties and other relevant material on record, we find that the assessee has taken a legal plea on the v....
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....during the search. Since the lower authorities did not had an occasion to examine the additional ground raised by the assessee challenging the validity of search proceedings in the light of claim of the assessee, we deem it appropriate to set aside the issue to the file of the CIT(A) for his consideration and direct him to admit the additional grounds raised by the assessee and adjudicate the issue as per law. 10 Since we have set aside the issue to the file of the CIT(A) for adjudicating the additional grounds raised by the assessee on the legal issue of validity of search proceedings, the grounds raised by the assessee, challenging the additions made by the Assessing Officer on merits has not been consider at this juncture. 11 In th....