TaxTMI 
TaxTMI 
2022 (8) TMI 1170
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....rned Senior Counsel on behalf of Mr.S.Ramachandran, learned counsel on record for the petitioner and Mr.A.P.Srinivas, learned Senior Standing Counsel for the revenue have been heard. 2. The grounds that have been argued and my conclusions thereupon are as follows: (i).The bar of limitation: both limbs of this ground have been considered and rejected by me as per orders dated 12.07.2022, 15.07.22 and 26.07.2022, extracted below: 12.07.2022: The matter had come up for hearing on 29.06.2022, when, at request of Mr. ANR Jayaprathap, learned Junior Standing Counsel, a final opportunity was granted for production of records and the matter was directed to be listed today, i.e., 12.07.2022. It was specifically noted that copies of the documents relied upon by the respondents be supplied to the petitioner in advance. 2. Today, neither of the directions have been complied with. The satisfaction notes, to which the petitioners are admittedly entitled, have not supplied by the respondents to them, and despite a specific direction in the pre-lunch session, only part of the records have been furnished. 3. Mr.A.P.Srinivas, objects stating that the request for documents was made ....
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....tunity had been granted for production of records but they are unavailable today. 7. List these cases as first matter in the second list on 15.07.2022. 15.07.2022: Mr.A.P.Srinivas, learned Senior Standing Counsel undertakes to provide copies of panchanamas and annexures in relation to both the petitioners by 18.07.2022. Copies of satisfaction notes have been supplied and are in possession of the petitioners. 2. The Department has some reservation in circulating the copies of order sheet notings, but is willing to show the same to the counsel for the petitioner for inspection in their presence. If the petitioners are willing to avail of this opportunity, they may do so. 3. List on 26.07.2022 as a first item in the regular list. 26.07.2022: The first argument advanced relates to a bar of limitation. This argument itself has two limbs. The first limb relates to the bar set out under Section 153B, Clause (xi) of the explanation thereto. 2. Section 153B sets out the time limit for completion of assessment under Section 153A and under the first proviso states that in cases of assessment under Section 154C, the period of limitation for completion of assessment/re-a....
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....hen the relevant information was received. 8. I find, on verification of the file, that the information has been received in two installments, the later installment on 16.08.2019. Thus, in this case as well, the period of one year is seen to be available to the respondent and the completion of assessment on 31.12.2019 is found to be in order. 9. The second limb of the argument advanced specifically comprises the framing of the assessment for the years 2010-11 and 2011-12 in the case of RKM Powergen Private Limited and for the assessment year 2010-11 in the case of RK Powergen Private Ltd. The argument is that the aforesaid two assessments stand outside of the block of six years that are to be formulated under Section 153C. 10. In aid of this argument, the petitioner invokes the application of the first proviso to Section 154C that reveals as under: Provided that in case of such other person, the reference to the date of initiation of search under section 132 or making of requisition under sectin 132A in the second proviso to subsection (1) of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or....
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....n the case of the petitioner seeing as the date of search in its case ranges between 21.03.2015 to 11.01.2016. However, one hardly need to refer this portion, since the construction of the block is detailed in the last portion of Section 153C(1) that states 'for the relevant assessment year or years referred to in sub-Section (1) of Section 153(1). 14. This takes us to the provision of Section 153A that sets out the construction of the block in the case of the searched person as follows: Assessment in case of search or requisition. 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 under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003 22[but on or before the 31st day of March, 2021], the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years and for the relevant asses....
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....under Section 153C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the AO of the Assessee. In this case, it would be the date of the recording of satisfaction under Section 153C of the Act, i.e., 8th September, 2010. In this view, the assessments made in respect of assessment year 2003-04 and 2004-05 would be beyond the period of six assessment years as reckoned with reference to the date of recording of satisfaction by the AO of the searched person. It is contended by the Revenue that the relevant six assessment years would be the assessment years prior to the assessment year relevant to the previous year in which the search was conducted. If this interpretation as canvassed by the Revenue is accepted, it would mean that whereas in case of a person searched, assessments in relation to six previous years preceding the year in which the search takes place can be reopened but in case of any other person, who is not searched but his assets are seized from the searched person, the period for which the assessments could be reopened would be much beyond the period of six years. This is so because the date of handing over of ass....
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....mit that there was insufficient time for completion of assessment and the show cause notices have been received only very proximate to the date of completion of assessment, I do not find the violation on this score sufficient to justify setting aside of the assessment itself. The Commissioner of Income Tax (Appeals), being the first appellate authority, is endowed with wide powers that are co-terminus with those of the Assessing Officer and can well cure any deficiency in this regard even at the stage of first appeal. Hence this ground is rejected. (iii). Challenge to the Satisfaction recorded by the Assessing Authority at the time of transfer of the seized material for assessment in the hands of the petitioner under Section 153C: Learned Senior counsel refers to the satisfaction note extracted below pointing out that the same is inadequate and does not set out in detail the materials seized on the basis of which satisfaction has been recorded. The satisfaction note reads as follows: M/s.R.K.M. Powergen Private Limited A.Y.2010-11 Search and seizure operation u/s 132 of the Income Tax Act, 1961 was carried out in the case of Shri V.R. Venkatachalam,....
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....e, as set out in paragraph Nos.6.2 and 7 of the Judgment are extracted below: 6.2. Now let us consider from the satisfaction note recorded by the Assessing Officer, in the present case. Whether there is a sufficient compliance of Section 153C of the Act or not. The satisfaction note reads as under: "Name and address of the assessee : M/s.Super Malls (P.) Ltd. Sector12 HUDA, Karnal Regd. Office at 51, Transport Centre Punjabi Bagh, New Delhi. PAN : AAICS2163F Status : Company Reasons/Satisfaction note for taking up the case of M/s. Super Malls (P) Ltd. Sector-12, HUDA, Karnal Regd. Office at 51, Transport Centre, Punjabi Bagh, New Delhi Under Section 153C of the Income Tax Act, 1961. The jurisdiction of this case has been assigned to this Office Under Section 127 of the Income Tax Act, 1961 by the worthy Commissioner of Income Tax-III New Delhi vide order F. No. CITIII/Delhi/Centralization/1012-1312455 dated 15.01.2013. By virtue of the authorization of the Director of Income Tax (Investigation), Chandigarh, a search & seizure operation Under Section 132(1) of the Act was carried out on 08/09.04.2010 at the residential/business p....
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.... clearly states that the documents so seized belonged to the other person - the Assessee and not the searched person. Thus, the High Court is justified in observing that the requirement of Section 153C has been fulfilled. On facts, we are in complete agreement with the view taken by the High Court on the requirement of Section 153C of the Act being fulfilled by the Assessing Officer before initiating the proceedings Under Section 153C of the Act. 7. In view of the above and for the reasons stated above, all these APPEALS fail and the same deserve to be dismissed and are accordingly dismissed. Now, the learned ITAT shall decide and dispose of the appeals afresh on merits, at the earliest, in accordance with law, as observed by the High Court in the impugned Judgment(s) and Order(s). 6. In light of the above discussion, it is apparent that there has been proper application of mind by the officer at the time of recording of satisfaction. That apart, the Assessing officers, both of the searched person as well as the other person, in this case, the petitioner, are one and the same. There is no difference of opinion on this fact. The satisfaction recorded contains all require....