TaxTMI 
TaxTMI 
2023 (8) TMI 1339
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....gainst the order of the ld. CIT(A) - 26, New Delhi dated 07.02.2020 pertaining to A.Ys 2012-13 to 2016-17. 4. ITA No. 693/DEL/2021 to ITA No. 697/DEL/2021 are appeals of Jaguar Equity Ltd preferred against the order of the ld. CIT(A) - 26, New Delhi dated 07.02.2020 pertaining to A.Ys 2012-13 to 2016-17. 5. Representatives of both the sides agreed that the underlying facts in the issues are identical in all these appeals. Assessment orders and orders of the first appellate authority are identically worded, though the quantum may differ. Therefore, on such, concession, all these appeals are disposed of by this common order for the sake of convenience and brevity. 6. In all the captioned appeals, the challenge is two-fold - - firstly, the assessee has challenged the validity of the assessment made u/s 153C of the Income-tax Act, 1961 [the Act, for short] and; - secondly, the assessee has challenged the adhoc disallowance of assumed expenditure partly sustained by the ld. CIT(A). 7. As mentioned elsewhere, the underlying facts in the issues are identical. We have heard the representatives of both the sides on the facts of ITA No. 693/DEL/2021 for A.Y 2012....
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....s u/s 153C of the Act, has already been exhibited elsewhere. A perusal of the same vis a vis the assessment completed by the Assessing Officer shows that what is noted in the Satisfaction Note has no bearing at all with the additions made by the Assessing Officer. 16. The Hon'ble Supreme Court in the case of Singhad Technical Education Society 397 ITR 344 has held that when the seized documents did not establish any co-relation document wise with the assessment years in question, then the validity of the assessment so framed was legally unsustainable. 17. It would be pertinent to understand the scheme of assessment u/s 153C of the Act. Relevant provisions of the Act read as under: "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 15....
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....on 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assessee or reassess total income of such other person of such assessment year in the manner provided in section 153A. 18. The above provision needs to be read with the Circular No. 1/2015 dated 21.01.2015 by the CBDT being Explanatory Notes to the Provisions of the Finance [No. 2] Act, 2014 and the same reads as under: "45. Assessment of income of a person other than the person who has been searched 45.1 Section 153C of the Income-tax Act relates to assessment of income of any person other than the person in whose case search has ....
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....otal income of such other person. Nowhere in the Satisfaction Note it has been mentioned that the said description of shares is related to alleged business of providing accommodation entries by the captioned assessees. 20. In light of the decision of the Hon'ble Supreme Court [supra] we are of the considered view that the additions/disallowance, devoid of any incriminating material found during the course of search, cannot validate the assessment orders framed u/s 153C of the Act. 21. The ld. DR relied upon certain judicial decisions in his Synopsis, which in our opinion, are not relevant on the facts of the case in hand. The decision of the Hon'ble Supreme Court in 1991 SCR 627 is on prima facie belief does not condition the final outcome and the Assessing Officer is not bound by the reasons recorded. This judgment is on the reopening of the assessment by issue of notice u/s 148 of the Act. 22. The question before us is whether the assessment order framed u/s 153C of the Act has any bearing on the impounded material considered as incriminating and exhibited elsewhere in the form of satisfaction note triggering proceedings u/s 153C of the Act. 23. This question ....