TaxTMI 
TaxTMI 
2020 (5) TMI 624
X X X X Extracts X X X X
X X X X Extracts X X X X
....ection is preferred by the assessee. 2.0 The brief facts of the case are that a search and seizure operation u/s 132 of the Income Tax Act, 1961 (hereinafter called as 'the Act') was carried out on 21.01.2011 in the Dharampal Satyapal Group of cases. This Group is engaged in manufacturing and trading of Chewing Tobacco and premium pan masala besides being involved in Food Products, Packing, Hospitality, Rubber, Steel and Education businesses. The main objects of this assessee company are sale and purchase of shares/mutual funds/other securities and finance business. During the year, under consideration, the return had been filed declaring a income of Rs. 13,36,22,526/- which had been set off against the business loss brought forward. The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d in law & on facts in deleting the addition of Rs. 2,78,43,961/- made by AO on account of disallowances of legal and professional expenses. 2. Whether on the facts & circumstances of the case, the Ld. CIT(A) has erred in law & on facts in allowing the losses of Rs. 7,03,15,125/- on account of sale of shares of M/s Blue Wing Tours & Travels (P) Ltd. 3. Whether on the facts & circumstances of the case, the Ld. CIT (A) erred in law & on facts by holding that transaction of sale of shares of M/s Costal Power Projects (P) Ltd is a real transaction and relates to the assessee company. 4. Whether on the facts & circumstances of the case, the Ld. CIT (A) has erred in law & on facts by accepting the transaction of sale of shares of M/s Blue W....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 153A of the Act. 2. That in any case, in absence of issuance and service of notice u/s 143(2) of the Act, the entire proceedings u/s 153A are illegal and in disregard to scheme of the act and settled legal principle." 3.0 At the outset, the Ld. Authorized Representative submitted that the Cross Objection filed by the assessee challenged the very foundation of the assessment and prayed that the Cross Objection of the assessee must be heard first because if the same is decided in assessee's favour, the impugned assessment would not stand. 3.1 The Ld. CIT-DR had no objection to this proposal of the assessee. 4.0 The Ld. AR submitted that the impugned assessment was framed without having any incriminating material being found and seized ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....incriminating material found at the third party premises. Reliance was placed on the judgment of the Hon'ble Delhi High Court in the case of Pr. CIT vs. Meeta Gutgutia reported in 395 ITR 526 (Del.) for the proposition that invocation of section 153A to re-open concluded assessments of assessment years earlier to year of search was not justified in absence of incriminating material found during search qua each such earlier assessment year. It was also submitted that the Revenue's SLP against this order of the Hon'ble Delhi High Court was dismissed by the Hon'ble Apex Court in the case of Pr.CIT vs. Meeta Gutgutia reported in 257 Taxman 441 (SC). Reliance was also placed on the order of ITAT Delhi Bench in the case of Trilok Chand Choudhary ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n as the material belonging to the assessee in terms of section 153C of the Act and was then required to proceed as per the provisions of section 153C of the Act. In the instant case, it is evident that addition in dispute has been made in the assessment completed under section 153A of the Act. The Act has provided separate provisions for making assessments in case of material found in the course of the search from the premises of the assessee as well as the material found in the course of search at the premises of the third party. The Assessing Officer is required to follow the procedure laid down in the Act for making the assessment and he cannot devise his own procedure. In our considered opinion, when the case of the assessee is covered....
X X X X Extracts X X X X
X X X X Extracts X X X X
....;s premises and not of any other assessee. The legislature has provided Section 153C by invoking the same the Revenue can utilize the incriminating material found in the case of search of any other person to the different assessee. ...... 15. Thus, when during the course of search of an assessee any books, document or money, bullion, jewellery etc. is found which relates to a person other than the person searched, then the Assessing Officer of the person searched shall hand over such books of account, documents, or valuables to the Assessing Officer of such other person and thereafter, the Assessing Officer of such other person can proceed against such other person. However, in the case under appeal before us, admittedly, Section 153C i....