TaxTMI 
TaxTMI 
2024 (5) TMI 1437
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....neous order, liable to be quashed. 2. That on the facts and circumstances of the case and in law, the assessment for AY 2020-21 had to be made in accordance with section 153C and the assessment order framed under section 143(3) is bad in law. 3. Without prejudice to the above, on the facts and circumstances of the case there is no evidence which suggests that the seized cash suggests undisclosed income of AY 2020-21 4. That on the facts and circumstances of the case the That the addition of Rs. 29,00,000 u/s 69A is bad in law as the addition has been made merely on the basis of discrepancy in the statement of the assessee without there being any other corroborative evidence. 5. That both the lower authorities have erred in ignoring the fact that CDR only is circumstantial evidence, which does not prove the source of the cash and cannot be relied upon in absence of a certificate u/s 65B(4) of the Indian Evidence Act 1872. 6. Without prejudice to the above the addition could not be made u/s 69A of the Act as the seized cash is already recorded in the books and the conditions for invocation of section 69A are not satisfied. 7. That....
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....irm in which he is an employee and he was merely acting on the instruction of his employers. Thereafter, the Deputy Director Income Tax (Investigation) (hereinafter referred to as "DDIT (Inv)") summoned the employee and the assessee by issuing notices under section 131(1A) of the Act. The cash seized by police was requisitioned by DDIT (Inv) on 17.03.2020 under section 132A of the Act. The DDIT (Inv) carried on with post requisition proceedings and sought information from the assessee, explaining the source of cash which was duly provided and explained by the assessee. Notices were issued u/s 153A to the employee of the assessee and it was accepted therein that the cash seized belongs to the assessee and not her employee and consequently the assessment order in the employee's case were passed u/s 153A on 15.03.2021 accepting the returned income. Further notices were also issued to the assessee for AY 2014-15 to AY 2019-20 under section 153C and for AY 2020-21 i.e the assessment year relevant to the requisition of cash, the notice was issued u/s 143(2) of the Act for determining the total income of the assessee. There was no incriminating material unearth as the cash in hand availab....
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....said section it is clear that the block of six years is to be considered with reference to the date on which books of account have been handed over to the AO of Other than searched person, which in the present case if 16.03.2021. The date of search with reference to proceedings u/s 153C would be 16.03.2021 and the relevant AY to the previous year of Search would be AY 2021-22. Thus, the block for which notices should have been issued u/s 153C in the present case comprises of AY 2015-16 to AY 2020-21. The moment section 153C is pressed into service, as per the second proviso to section 153A of the Act all pending assessment on the date of handing over of the books of account or documents to the Assessing Officer having jurisdiction over other person shall abate, and the assessments for those years will have to be framed under section 153C of the Act. 5.1. Reliance is placed on the judgement of Hon'ble Supreme Court in case of Commissioner of Income-tax-14 v. Jasjit Singh [2023] 155 taxmann.com 155 (SC) [26-09-2023] "9. It is evident on a plain interpretation of Section 153C(1) that the Parliamentary intent to enact the proviso was to cater not merely to the question of a....
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....ocuments seized during search of another person reflect undisclosed income of an Assessee before commencing an enquiry under Section 153C of the Act, it would be impermissible for him to commence such enquiry if it is apparent that the documents/assets in question have no bearing on the income of the Assessee for the relevant assessment years." In the said case, Hon'ble Court observed that six years must be construed as commencing from the date of handing over of the documents seized by the assessing officer of the searched entity to the assessing officer of the third party. 5.3. The ld. AR argued that the present case the ld. AO has framed assessment for AY 2020-21 under section 143(3) instead of section 153C therefore the assessment framed is illegal and bad in law. Also, no notice has been issued u/s 153C for AY 2020-21 whereas in the satisfaction note u/s 153C the AO himself admits that the proceedings for AY 2020-21 are to be framed u/s 153C. The assessment order has been passed without jurisdiction in absence of issuance of notice u/s 153C which allows assessee to file a return in response to the said notice. 6. The ld. DR vehemently argued and fully relied on the or....