TaxTMI 
TaxTMI 
2023 (3) TMI 511
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....,00,000/- for the reason that the assessee offered the said income during the course of search proceedings. 3. Aggrieved, assessee preferred appeal before the First Appellate Authority. The assessee raised several grounds on legal issues as well as merits. All the issues raised by the assessee were rejected and the appeal of the assessee was dismissed. 4. Aggrieved by the order of the CIT(A) the assessee filed the present appeal before the Tribunal. The learned A.R. has filed two sets of paper books, serially numbered (pages 33) enclosing therein computation of income for AY 2014-15, Panchanama in the case of the assessee as well as in the case of Mahavir Medicare, copy of statement recorded under Section 132(4) of the Act, notices issued, copy of retraction statement, copy of assessment order completed in the case of the assessee for AY 2015-16, copy of satisfaction recorded by the AO of the searched person for initiating proceedings under Section 153C of the Act in the case of the assessee, case law relied upon, etc. The assessee has raised several grounds on legal issue as well as on merits. As regards legal issues are concerned the primary contention is that the assessmen....
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....orisation of search warrant in the case of assessee is evident from the copy of the Panchanama which is dated 20.12.2014 and the same, for ready reference, is reproduced below: - 8. The AO in the case of Mahaveer Medicare has recorded satisfaction for initiating proceedings under Section 153C of the Act in the case of the assessee. The reasons for initiating action under Section 153C of the Act is reproduced for ready reference: - "Reasons for Initiating action u/s. I53C of Income Tax Act, 1961 in the case of Shri Vikash Sethia Search & seizure action u/s 132 of the Income Tax Act, 1961 was carried out in the case of Mahaveer Medicare on 19-12-2014. The residence of Shri Vikas Sethia, No.9A, Gulmohar Mansion,No.20, Convent Road, Richmond Town, Bangalore 560 025 was also searched and various documents as per Panchanama dated 13-01-2015 were seized. 2. During the course of assessment proceedings u/s. 153A in the case of Mahaveer Medicare upon examining the documents seized from the residence of Vikas Sethia, the undersigned in the capacity of Assessing Officer of Mahaveer Medicare was satisfied in terms of section 153C of the Income-tax Act, 196....
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....ses of assessee during the course of search. In other words Annexure A cannot be considered as a document seized in premises of Mahaveer Medicare for initiation of proceedings under Section 153C of the Act in the case of the assessee. 11. As mentioned earlier, admittedly there is warrant of authorisation to conduct search in the premises of the assessee and the cash was found in the premises of the assessee. The impugned addition in the case of the assessee is made on the basis of cash found and statement recorded from the assessee during the course of search in his residential premises. Therefore, the assessment in our view ought to have been completed under Section 153A r.w.s. 143(3) of the Act and not under Section 153C of the Act. We are also unable to appreciate the contention of the learned D.R. that both Sections 153A & 153C are mentioned in the order and therefore there is no infirmity. From the notices issued and satisfaction recorded it is clear that the AO has completed the assessment under Section 153C and not under Section 153A of the Act. Since the assessment has been completed under Section 153C of the Act, we are of the view that the assessment framed suffers fro....
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....he AO for Assessment Years 1998- 99, 1999-2000 & 2001-02 had issued notice dated 7.3.2006 under section 153A read with section 153C of the Act. The initiation of the proceedings thus are under section 153C of the Act i.e. in respect of person other than the person searched, which is not the case. The assessee is the person searched and requirement of law is to issue the notice under section 153A of the Act. The copy of the aforesaid notice have been filed on record and have been perused by us. Though in the assessment order, the AO mentions that the notice had been issued under section 153A of the Act on 7.3.2006, but infact the notice which is issued on 7.3.2006 was the notice under section 153A read with section 153C of the Act. The said notices were invalid and the consequent assessment framed under section 153A of the Act suffers from infirmity, because of lack of jurisdiction invoked by the AO under section 153A of the Act. Consequently, the assessment orders framed in the case are bad in law and we hold so. We thus cancel the assessment orders passed in the case against the assessee being bad and invalid in law. The ground of appeal no. 1 stands thus allowed in favour of the ....