2016 (5) TMI 1520

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....l ground as well as on merits. 2. The facts of the case, in brief, are that a search and seizure operation was carried out in the Modi Family Group on 9.11.2011. During the course of search at the residential premises of Shri Krishan Kumar Modi at A-1, Maharani Bagh, New Delhi, a copy of the sale deed executed on 18.12.2007 by one Shri Sanjeev Lal in favour of M/s Bina Fashion N Foods (P) Ltd. i.e. the assessee, through its Director Ms Bina Modi, was seized and annexed as Annexure-1, page no. 93 to 101 by Party No. D-1. Subsequently, the case was centralised with Central Circle-2, New Delhi and the Assessing Officer, after examining the seized records, recorded the satisfaction on 29.01.2014 that the documents seized during the course of....

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.... to the appellant's AO and, therefore, void ab-initio; which must be quashed." 4. The Ld. AR submitted that the assessment for the year in appeal i.e. assessment year 2007-08 was barred by limitation since the satisfaction contemplated u/s 153C of the Act was recorded by the Assessing Officer on 29.01.2014 (the relevant assessment year being 2014-15). Accordingly, the date of search i.e. 9.11.2011 gets substituted by the date of recording satisfaction i.e. 29.1.2014 and the six preceding assessment years in the case of the assessee become assessment years 2008- 09, 2009-10, 2010-11, 2011-12, 2012-13 and 2013-14 and, accordingly, assessment year 2007-08 gets excluded. He relied on the judgement of the Hon'ble Delhi High Court in the c....

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....ipt of the notice from the Assessing Officer, shall furnish the returns of income and thereafter the Assessing Officer is empowered to assess or reassess the total income in respect of different assessment year falling within six assessment years. Now, a question may arise as to what would happen to the regular returns, if any, filed by the searched assessee for any of the six assessment years which are pending on the date on which the search was initiated. The answer is given by the second proviso to Section 153A, which says that if any of those returns is or are pending, the assessment or reassessment relating to those returns shall abate. The object obviously is to avoid multiplicity of assessment or reassessment proceedings in respect o....

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....sdiction over the other person has to proceed against him and issue notice to that person in order to assess or reassess the income of such other person in the manner contemplated by the provisions of Section 153A. Now a question may arise as to the applicability of the second proviso to Section 153A in the case of the other person, in order to examine the question of pending proceedings which have to abate. In the case of the searched person, the date with reference to which the proceedings for assessment or reassessment of any assessment year within the period of the six assessment years shall abate, is the date of initiation of the search under Section 132 or the requisition under Section 132A. For instance, in the present case, with ref....