TaxTMI 
TaxTMI 
2024 (6) TMI 598
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....011-12 and 2012-13. 2. At the outset, learned counsel appearing for the assessee raised certain pertinent issues challenging the validity of the impugned assessment order and also sustainability of the additions made. It is the say of the assessee before us that insofar as assessment year 2008-09 is concerned, the Assessing Officer could not have proceeded to frame assessment under section 153A/153C read with section 143(3) of the Income-tax Act, 1961 (in short 'the Act'), as, it is outside the block of six assessment years, in terms with section 153C of the Act. Without prejudice to the aforesaid submission, it has been submitted before us that the additions made in the assessment orders are not based on any incriminating material found a....
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....e. 4. Against the assessment orders so passed, the assessee preferred appeals before learned first appellate authority, inter alia, on the ground that additions having been made without any incriminating materials, are unsustainable. The first appellate authority, however, did not find merit in the submissions of the assessee. He observed that as per the remand report of the Assessing Officer, the additions made in the assessment years were based on seized materials. Thus, ultimately, he sustained the additions made by the Assessing Officer. 5. Before us, learned counsel appearing for the assessee reiterated the stand taken before the departmental authorities. He submitted, as far as assessment year 2008-09 is concerned, in terms with pro....
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.... Vs. DCIT, ITA No.2205/Del/2017, dated 14.02.2020 in assessment year 2009-10 and in ITA No. 7347 & 7348/Del/2017, dated 26.07.2023 in assessment years 2011-12 and 2012-13. 7. Thus, he submitted, when it is established on record that the additions made are not based on any incriminating material found as a result of search in respect of unabated assessments, such additions have to be declared as unsustainable. In support of such proposition, he relied upon a decision of the Hon'ble Supreme Court in case of PCIT Vs. Abhisar Buildwell Pvt. Ltd., (2023) 294 Taxman 70. 8. Learned Departmental Representative submitted, both the Assessing Officer and the first appellate authority have observed that in course of search and seizure operation, larg....
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.....2014 for assessment years 2007-08 to 2012-13. 10. Thus, we have to proceed on the basis that assessment proceedings were initiated and completed under section 153C of the Act. As discussed earlier, the Assessing Officer has recorded the satisfaction note under section 153C of the Act on 18.09.2014. In other words, the satisfaction note was recorded in financial year 2014-15 corresponding to assessment year 2015- 16. Therefore, the block of six previous assessment years would be 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15. Therefore, the assessment year 2008-09 does not fall within the block of six assessment years, as per the provisions contained under section 153C read with its proviso applicable to the assessment year under ....
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....have to virtually preserve the records for at latest 10 years which is not the requirement in law. Such disastrous and harsh consequences cannot be attributed to Parliament. On the other hand, a plain reading of Section 153-C supports the interpretation which this Court adopts." 11. The ratio laid down by the Hon'ble Supreme Court, as aforesaid, clearly applies to the facts of the present appeal. Therefore, the Assessing Officer could not have proceeded under section 153A/153C of the Act to initiate and complete the assessment. That being the legal position, the assessment order for the assessment year 2008-09, being void ab-initio is unsustainable. Hence, deserves to be quashed. 12. Be that as it may, the second issue, which arises for c....
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....Assessing Officer has to record satisfaction note for each assessment year, for which, he intends to initiate proceedings under section 153C of the Act and he also has to refer to incriminating/seized materials relating to such assessment year to justify initiation of proceedings under section 153C of the Act. In the facts of the present appeals, it is not the case. In fact, on specific query, learned Departmental Representative failed to bring to our notice any seized/incriminating materials, which could have influenced the present additions. Even, the paper-books filed by the Department do not contain any seized/incriminating materials. 15. On the contrary, a careful reading of the assessment order and order of first appellate authority ....