TaxTMI 
TaxTMI 
2022 (1) TMI 279
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....he same were admitted and ld. AR was asked to proceed with his arguments. 4. The ld. AR at the outset submitted that there are certain typographical errors in the additional grounds of appeal and filed a chart and in this respect invited our attention to corrigendum to the petition for additional grounds, wherein it has been submitted that in Ground No. 14 forth line the word 'or' may be read as "for" and in Ground No. 15 ninth line '143(3)' may be read as "153C". 5. The additional grounds after taking into account the corrigendum are reproduced below: "14. Because on the facts and circumstances of the case, in absence of issuance and service of notice u/s. 153C read with section 153A of the I.T. Act, the jurisdiction for framing the impugned assessment for A.Y. 2016-17 has been wrongly assumed, hence the impugned assessment is without jurisdiction, illegal and unsustainable. 15. Because in view of First proviso to section 153C(1), the search year in the case of the assessee is A.Y. 2018-19 and not impugned A.Y. 2016-17 hence as the impugned assessment has been framed u/s. 143(3) by treating the impugned assessment year as the search assessme....
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....icer of other person and in this respect our attention was invited to the provisions of Section 153C of the Act. It was submitted that the earliest date when the documents can be deemed to have been received by the Assessing Officer of other person is on or after the date of recording of satisfaction by the Assessing Officer of the searched person which happens to be 01.12.2017 and therefore the search year in the case of assessee will be Assessment Year 2018-19. It was submitted that the said section was amended w.e.f. 01.4.2017 to make the year of search in both cases the same but the amended section is applicable for the searches conducted on or after 01.4.2017 and such amendment is also not retrospective as has been held by the ITAT, Delhi Benches in the case of M/s. Bina Fashions N. Foods (P) Ltd. vs. DCIT in ITA No. 610/Del/2016 vide order dated 17.01.2020 and further held by ITAT, Delhi benches in the case of ACIT vs. M/s. N.S. Software in ITA No. 3161/Del/2016 vide order dated 5.2.2020. The ld. AR submitted that since the assessment has been completed u/s. 143(3) of the Act and not u/s. 153C of the Act, therefore, the whole assessment order is null and void and is liable to....
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....the satisfaction i.e., 29.01.2014 and the six preceding assessment years in the case of the assessee become A.Ys. 2008-2009 to 2013-2014. Accordingly, A.Y. 2007-2008 gets excluded. The contention of assessee has been accepted by the Tribunal and appeal of assessee has been allowed. The ITAT, Delhi A-Bench in the case of M/s. BNB Investments and Properties Ltd., (supra) in paras 7 to 10 considered the identical issue in the light of Judgment of Hon'ble Delhi High Court and accepted similar contention of assessee. The Order of the Tribunal is reproduced as under: "7. We have considered the rival submissions. Section 153C of the I.T. Act, 1961, as is applicable to assessment year under appeal reads as under: "153C. Assessment of income of any other person:- (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or....
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....tal income of such other person of such assessment year in the manner provided in section 153A. 7.1. The Hon'ble Delhi High Court in the case of Pr. CIT vs. Sarwar Agency P. Ltd., (2017) 397 ITR 400 (Delhi.) (HC) (supra), considering the identical issue held as under: "Sub-section (1) of section 153C of the Income-tax Act, 1961 provides that the assessment or reassessment of the income of the "other person" would be in accordance with the provisions of section 153A. The first proviso to sub-section (1) of section 153C further states that, in case of such other person, the reference to the date of initiation of search in the second proviso to section 153A(1) "shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person". In terms of section 153A(1)(b) of the Act. the Assessing Officer shall assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which the search was conducted. The second proviso to sub-section (1) of section 153A of the Act states that a....
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....the Act for the assessment year 2006-07 was without jurisdiction since the assessment year was beyond the purview of issuance of notice in terms of the provision." 7.2. The ITAT, Delhi, B-Bench in the case of ACIT, C.C.-2, New Delhi vs. Empire Casting Pvt. Ltd., New Delhi. Ltd., New Delhi (supra), held in paras 5 and 5.1 as under: "5. We have heard the rival submission on this issue and also perused the judgment dated 30th October, 2015 of the Hon'ble jurisdictional High Court in the case of CIT Vs RRJ Securities in ITA No. 164/2015 and ITA No. 175 to 177/2015. For ready reference, the relevant Para of the judgment is reproduced as under: "24. As discussed hereinbefore, in terms of proviso to Section 153C of the Act, a reference to the date of the search under the second proviso to Section 153A of the Act has to be construed as the date of handing over of assets/documents belonging to the Assessee (being the person other than the one searched) to the AO having jurisdiction to assess the said Assessee. Further proceedings, by virtue of Section 153C(1) of the Act, would have to be in accordance with Section 153A of the Act and the reference to the date ....
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....n that in any view of the matter, assessment for A.Y. 2003-04 and A.Y. 2004-05 were outside the scope of Section 153C of the Act and the AO had no jurisdiction to make an assessment of the Assessee's income for that year." 5.1. The fact that satisfaction u/s. 153C of the Act in the case was recorded on 2nd November, 2009, is not disputed by both the parties. In the judgment cited above, the Hon'ble High Court has held that when the Assessing Officer of searched person and such other person in whose case proceedings under section 153C are initiated, is the same officer, then the date of recording of satisfaction would be construed as the date of handing over of the seized records by the Assessing Officer of searched person to the Assessing Officer of such other person in whose case proceedings under section 153C are initiated. Since the Hon'ble High Court has already construed the relevant provisions, we do not concur with the arguments advanced by the ld. CIT DR on this count. Respectfully following the above judgment of the Hon'ble High Court in RRJ Securities (supra) the date of handing over of seized material/record by the Assessing Officer of searched p....
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.... the I.T. Act, considering the assessment year under appeal i.e., A.Y. 2012-2013 to be the year of search. However, the First Proviso to Section 153C of the I.T. Act provides that the 06 assessment years for which assessments or re- assessments could be made under section 153C of the I.T. Act, would also have to be construed with reference to the date of handing-over of the assets or documents to the A.O. of the assessee. Therefore, the 06 assessment years under section 153C of I.T. Act in the case of assessee would be A.Y. 2008-2009 to 2013-2014. The A.O., therefore, shall have to pass the assessment order under section 153C of the I.T. Act. However, A.O. has not issued any notice under section 153C of the I.T. Act before initiating the proceedings against the assessee which is also admitted by the A.O. in reply to the assessee under RTI Act. The Amendment in Section 153C of the I.T. Act by the Finance Act, 2017, w.e.f. 01.04.2017 to the effect that block period for the person in respect of whom the search was conducted as well as the "other person" would be the same six assessment year immediately preceding the year of search is prospective in nature. The issue have been dealt in....