TaxTMI 
TaxTMI 
2020 (2) TMI 86
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....e heard together and are being disposed of by this consolidated order for the sake of convenience. 3. The assessee in appeal relating to assessment years 1998-99, 1999- 2000 and 2001-02 has raised the preliminary issue vide ground of appeal no. 1, which reads as under:- "Looking into the facts & circumstances of the case and in law, the Ld. AO has erred in not issuing and serving the notice under section 153(A) on the assessee & hence, the whole assessment is invalid. However, the CIT(A)-XXXI erred in confirming the assessment order on untenable and illegal grounds. Hence the assessment being illegal may be quashed." 4. The learned AR for the assessee has pointed out that the preliminary issue goes to the root of jurisdiction invoked by....
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....phical error in issuing notice under section 153 of the Act. 9. We have heard the rival contentions and perused the record. The jurisdictional issue which is raised by the assessee by way of ground of appeal no. 1 goes to the root of the jurisdiction invoked by the AO in the present set of appeals. Admittedly, the premises of the assessee were searched on 16.12.2003. Consequent thereto, the requirement of law is that in case the premises of the persons have been searched, then the proceedings to be initiated are by way of issue of notice under section 153A of the Act. The AO in such facts and circumstances has to issue, the aforesaid notice under section 153A of the Act and requisition the assessee to furnish the return of income for the c....
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....g to assessment year 2004-05 wherein the assessee, at the outset has not pressed grounds of appeal no. 1 to 4 and the same are dismissed as not pressed. However, the ground of appeal nos. 5 and 6 raised by the assessee read as under:- "5) Looking into the facts and circumstances of the case and in law, the LD AO erred in making an addition of Rs. 35,74,537.00 u/s 68 on untenable and illegal grounds and Honorable CIT(A)- XXXI erred in sustaining the same. Hence, the addition of Rs. 35,74,537.00 may be deleted. 6) Looking into the facts and circumstances of the case and in law, the LD AO erred in making an addition of Rs. 1,47,82,541.00 on account of protective basis u/s 160 and 163(1)0 in respect of NRI brothers and Honorable CIT(A)- X....
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....y was undertaken in assessment year 2002-03 then cash if any, was to be added in assessment year 2002-03. However, he stressed that the said documents were a dumb document as it talked of "estimated consideration" and no transaction materialized. He also stressed that no cash was found during the course of search except petty amount of Rs. 7000/-. He also pointed out that in the absence of any books of accounts, no addition was warranted under section 68 of the Act. Referring to the ground of appeal no. 6, the learned AR for the assessee brought to our notice that same related to protective addition made in the hands of the assessee on account of cash component belonging to the brothers / sisters of the assessee. However, no substantive add....
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....e in assessment year 2004- 05. Without going into the merits of the notings of the seized documents, we find no merit in the aforesaid addition made in the hands of the assessee with regard to the cash component of a sale transaction which was completed in assessment year 2002-03, where cash component was added to the income of the assessee in assessment year 2004-05. Following the simile, we find no merit in the protective addition made in the hands of the assessee on account of cash components relating to the resident and non-resident brothers/sisters of assessee under section 160 and 163 of the Act. In any case, the AO had failed to give separate notice under section 163(2) of the Act and in the absence on same, no addition could be made....