TaxTMI 
TaxTMI 
2022 (1) TMI 820
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.... Without prejudice 1. On the facts and in the circumstances of the case and in law the notice under section 153C of the Act is bad in law as the requisite satisfaction as contemplated under provisions of section 153C of the Act has not been recorded by the assessing officer of the person searched before initiating the proceedings in the case of the appellant. 2. On the facts and in the circumstances of the case and in law the addition made by the assessing officer is bad in law as the addition is not based on any incriminating material found during the course of search. 3. On the facts and in the circumstances of the case and in law the assessment is bad in law as no satisfaction of the Joint Commissioner as contemplated under section 153D of the Act has been recorded before finalizing the assessment. " 3. The additional grounds are purely on legal and jurisdictional issues questioning the validity of the assessment order. Further, since the adjudication of the additional grounds do not require investigation into fresh facts, we are inclined to admit the additional grounds for adjudication. 4. The short issue arising in additional ground no. 1 ....
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....ceeding for regular assessment under section 143 and has also passed the order under the said provision, it is invalid. In support of such contention, learned counsel relied upon the following decisions: 1. Jasjit Singh vs. ACIT, ITA No. 1436 & 1707/Del/2012 dated 05.11.2014. 2. CIT vs. Shri Jasjit Singh, ITA No. 375/2015 judgment dated 11.08.2015 of Delhi High Court. 7. The learned Departmental Representative submitted, though, there is no dispute regarding the factual aspect of the issue, however, the additional rounds raised by the assessee should not be entertained and the appeal may be decided on merits. 8. We have considered rival submissions in the light of the decisions relied upon and perused the materials on record. Facts emanating from record reveal that a search and seizure operation was conducted in case of M/s Gold Sukh Safety Tools Ltd. on 08.11.2012. In course of search and seizure operation, a locker containing some cash and valuables was found. Ultimately, the assessee owned up the locker along with its contents. It is a fact on record that as a consequence of the search and seizure operation, the search related assessments were centralized....
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...., as per the provision contained under section 153C r.w.s. 153A of the Act, for assessment year 2014-15 regular assessment has to be made under section 143(3) of the Act. Whereas, in respect of the preceding six assessment years viz. assessment years 2008-09 to 2013-14 assessment proceedings have to be initiated under section 153C of the Act. Undisputedly, in case of the present assessee, assessment for assessment year 2013-14 i.e. impugned assessment year, has been completed under section 143(3) of the Act. Neither the AO has recorded any satisfaction nor issued any notice as contemplated under section 153C of the Act. Therefore, the short issue arising for consideration is, whether the impugned assessment order is sustainable. While dealing with an identical issue in case of Jasjit Singh vs. ACIT (supra), the coordinate Bench has held as under:- "13. We find that there is no dispute on the relevant facts of the case that search and seizure operation u/s 132 of the Act in the case of Koutons was conducted on 19/02/2009 which is relevant to the F.Y. 01/04/2008 to 31/03/2009 and the relevant assessment year is 2009-10. It is also undisputed that the case of the assessee was....
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....reference para no. 19, 21, 22 & 23 of the decision of Delhi Bench of the Tribunal in the case of DSL Properties (supra) are being reproduced hereunder: 19. "We have carefully considered the rival submissions. Proviso to section 153C reads as under: "Provided that in case of such other person, the reference to the date of initiation of the search u/s 132 or making of requisition u/s 132A in the second proviso to [sub-section (1) of] section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the AO having jurisdiction over such other person." 20. The above proviso refers to second proviso to sub-section (1) of section 153A. That section 153A(1) and its first and second provisions read as under: - "153A. [(1)] Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated u/s 132 or books of account, section 132A after the 31st day of May, 2003, the AO shall - (a) Issue notice to such person requiring him to furnish within such period, as may be specifie....
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.... the facts of the assessee‟s case we have arrived at the conclusion that no such exercise has been properly carried out and, therefore, initiation of proceedings u/s 153C itself is invalid, however, since both the parties have argued the issue of period of limitation also, we deem it proper to adjudicate the same. Since in this case satisfaction is recorded on 21st June, 2010 and notice u/s 153C is also issued on the same date, then only conclusion that can be drawn is that the AO of such other person has taken over the possession of seized document on 21st June, 2010. Accordingly, as per section 153(1), the AO can issue the notice for the previous year in which search is conducted (for the purpose of Section 153C the document is handed over) and six assessment years preceding such assessment year. Now, in this case, the previous year in which the document is handed over is 1st April, 2010 to 31st March, 2011. The assessment year would be A.Y. 2011-12. Six preceding previous years and relevant assessment year would be as under: Previous Year Assessment Year 1.4.2009 to 31.3.2010 2010-11 1.4.2008 to 31.3.2009 2009-10 1.4.2007 to 31.3.2008 2008-09 1.4....
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....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 u/s 132 or the requisition u/s 132A. For instance, in the present case, with reference to the Puri Group of Companies, such date will be 5.1.2009. However, in the case of the other person, which in the present case is the petitioner herein, such date will be the date of receiving the books of account or documents or assets seized or requisition by the AO having jurisdiction over such other person. In the case of the other person, the question of pendency and abatement of the proceedings of assessment or reassessment to the six assessment years will be examined with reference to such date." 18. In view of the above finding, the assessment framed u/s 143(3) of the Act for the A.Y. 2009-10 in the present case is not valid. Respectfully following the above cited decisions on an identical issue, the additional ground no. 4 in the present case is decided in favour of the assessee and in the result the assessment order is quashed as void." 10. It is worth....