TaxTMI 
TaxTMI 
2022 (9) TMI 1141
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....tances of the case and in law the Ld Commissioner of Income Tax (Appeal) erred in not allowing the additional grounds of appeal on the ground that the assessment order is passed on the normal provisions of the Act, based on notice issued under section 143(2) without accepting the fact that notice u/s 153C was issued in the case of the Appellant and based on the date of initiation of search on the basis of satisfaction note, the year falls within the period of six years from the date of initiation of search and order should have been passed under section 153C r.w.s. 153A and not under section 144/143(3) of the Income Tax Act, 1961 on the ground or grounds as stated in the Appellate Order or otherwise. 2. On the facts and circumstances of the case and in Law the Ld. Commissioner of Income Tax (Appeals) (referred as CIT(A) ) erred in confirming the ex-parte order passed by the Assessing Officer (AO) by invoking the provision of section 144 without calling any information from the AO on the ground or grounds as contained in the appellate order or otherwise. 3. On the facts and circumstances of the case and in Law the Ld. Commissioner of Income Tax (Appeals) erred in c....
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.....7603/M/2019 for A.Y. 2010-11) 1. Whether the CIT (A) was justified in reducing GP from 28% to 25% ignoring the basis adopted by the AO based upon the exact comparable case viz. M/s. Shruti Arts Pvt. Ltd. 2. Whether the CIT (A) was justified in deleting the addition of Rs.50,00,000/- stating it to be estimation on imaginary basis rather than remanding the matter for verification of bank account which the assesses jailed to produce during the assessment proceedings. 3. Whether the CIT (A) was justified in deleting the addition of Rs.50,00,000/- by ignoring the observation of the Assessing officer that the huge finance from the bank remained unreconciled with the stock and movement of goods resulting in the premise that it was misappropriated for non-business purpose." 4. The Appellant craves leave to add, to amend and/ or to alter any of the grounds of appeal, if need be. 5. The Appellant, therefore, prays that on the grounds stated above, the order of the CIT(A)- 48, Mumbai may be set aside and that of the Assessing Officer restored." 3. Briefly stated facts necessary for adjudication of the controversy at hand in all the aforesaid ap....
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....on the date on which he records the satisfaction note, which is the date of initiation of search, and the date in this case as per record is 19.11.2012 because the AO has recorded his satisfaction for the other assessment years viz. 2004-05 to 2009-10 in which he had issued the notice under section 153C of the Act. It is also not in dispute that when the date of recording the satisfaction is 19.11.2012 then proceedings under section 153C of the Act are required to be initiated for all the assessment years for six years i.e. 2006-07 to 2011-12. It is also not in dispute that assessment made by the AO in case of assessee for A.Y. 2004-05 to 2009-10 under section 153C have been deleted on the ground that the same did not arise out of any seized material. It is also not in dispute that on 19.11.2012 assumed date for recording satisfaction of the assessment for A.Y. 2010-11 was not pending and notice under section 142(1) was issued whereas no notice under section 143(2) has ever been issued. It is also not in dispute that addition in this case for both the years is not based upon any seized material. It is also not in dispute that on 19.11.2012 A.Y. 2011-12 was pending and notice under ....
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..... However, the Ld. A.R. for the assessee to substantiate his argument drew our attention towards order dated 21.03.2018 passed in ITA No.6875 to 6879 of 2016 in case of assessee for A.Y. 2005- 06 to 2009-10 which were also part of the assessment years covered by the block assessment on the basis of search and seizure ooperation carried out on Reliable Group during the period 23.02.2010 and 20.04.2010, it has specifically come on record that the "the AO has assumed jurisdiction to make the impugned assessment by issuing notices for each of the captioned assessment years under section 153C of the Act dated 19.11.2012." 13. Furthermore, during the assessment proceedings the Ld. CIT(A) called upon the AO to bring on record the satisfaction note recorded in these cases, to which AO informed by way of letter dated 18.03.2016, DCIT/CENT.CIR.2(2)/Rem./2015-16 which is part of the judicial record that "as regards satisfaction note, a reference may be drawn to the assessment order wherein the AO has mentioned that, "the satisfaction was drawn before initiating the proceedings u/s 153C. Sir, it may further be appreciated that this records were originally lying on 8th floor of this building....
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....e Revenue relied upon the order passed by the ld. CIT (A). 15. For facility of reference, provisions contained u/s 153C are extracted for ready perusal as under :- "153C. (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, - - (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determina....
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....such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A." 16. Bare perusal of the provisions contained u/s 153C which is a non-obstante provision shows that when the assessment order shows that the assessment proceedings were to be initiated on the basis of incriminating material found in search of a third party, as in the present case, the provisions contained u/s 153C are applicable which specifically excludes application of sections 147 & 148 of the Act. 17. In the instant case, undisputedly, originally assessment proceedings were initiated against the present assessees u/s 153C read with section 153A of the Act which was completed vide order dated 30.12.2011 but the same were annulled by ld. CIT (A) vide order dated 28.08.2012 on the ground that proper course in this case was to initiate proceedings u/s 147 of the Act and make assessment accordingly. The said assessment u/s 153C read with section 153A was completed on the basis of some seized material/document LP-103 A-1 pages 30, which is a memorandum of understanding alleged to have been entered into....