2022 (5) TMI 1347

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....h May, 2021 passed U/s. 143(3) r.w.s 153C and U/s. 250(6) of the Act for the AY 2017-18. The assesse has raised the Cross Objection No.02/Viz/2022. 2. The Revenue has raised the following grounds in its appeal: "1. The Ld. CIT(A) erred in holding that the search was conducted in the case of the assessee when the warrant was issued in the case of Sri Kondrothu Venkata Rama Rao. 2. The Ld. CIT(A) erred in law and on facts in deleting the addition of Rs. 1,31,27,000/-. 3. The Ld. CIT(A) erred in not appreciating that as per the provisions of section 292BB of the IT Act, if the assessee participated in the proceedings by way of legal fiction, notice would be deemed to be valid even if there be infractions as detail....

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....he additions made by the Ld. AO besides a legal ground on the validity of issue of notice U/s. 153C of the Act which is as under: "2. The appellant himself was subjected to search u/s. 132 of the Act and as such the proceedings ought to have been initiated U/s. 153A and not U/s. 153C of the Act. Consequently, the notice issued U/s. 153C is liable to be quashed as illegal and the entire assessment proceedings are liable to be quashed as void ab initio." 5. On this ground, the Ld. CIT(A) made an elaborate discussion in his order and held that the impugned notice issued by the AO U/s. 153C of the Act suffers from infirmity because of lack of jurisdiction invoked by the Ld. AO U/s. 153C of the Act. Consequently, the assessment order....

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....1, consequent to the search, as per the requirement of law, in case the premises of the persons have been searched, then the proceedings to be initiated are by way of issue of notice U/s. 153A of the Act. In the instant case, the Ld. AO ought to have issued notice U/s. 153A of the Act instead of notice U/s. 153C of the Act. Further, the Act also indicates that in case any documents relating to person other than the person searched was found, then the notice to be issued to such other person is U/s. 153A r.w.s 153C. Therefore, the initiation of proceedings U/s.153C of the Act in the case of the assessee who is other than the person searched is not valid. The same view was also taken by the Ld. CIT(A) while allowing the legal ground raised be....