TaxTMI 
TaxTMI 
2024 (7) TMI 1133
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....irement of CBDT Circular dated 14.08.2019. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in passing the order exparte without providing the assessee adequate opportunity of being heard in violation of principle of natural justice. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the order passed by the AO despite the fact that the notice issued by the AO under section 143(2) and consequent reassessment order is illegal, invalid and has been issued and passed without having valid jurisdiction upon the assessee. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the order passed by the AO, despite the fact that the same has been passed violating the provisions of section 153D of the Income Tax Act. 6. (i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 94,00,000/- invoking the provisions of section 45 of the Act and treating the Full value of consideration in respect to the property t....
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....ed 13.09.2023 passed by the learned Commissioner of Income Tax (Appeals)-23, New Delhi under Section 250 of the Income Tax Act. 2. That while filing the appeal, the applicant has raised 10 grounds of appeal. 3. However, while filing the appeal the appellant inadvertently has left out the ground of appeal relating to the assessment proceedings initiated without complying with the provision of section 153C of the Act being bad in law and without jurisdiction and therefore same is liable to be quashed. 4. That accordingly, the applicant is filing additional grounds of appeal. 5. That it is submitted that the following additional grounds may kindly be taken as the same goes to the root of the issue and all the facts are already on record: "11. On the facts and circumstances of the case, the learned AO has erred in considering the assessment year under consideration as the assessment year relevant to the previous year in which search was conducted and consequently passing the assessment order under section 143(3) of the Act instead of section 153C of the Act. 12. On the facts and circumstances of the case, assessment order is otherwi....
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....bmission of the assessee. In the paper book filed, it is also submitted by the assessee and certified by the assessee that copy of written submission were e-filed before the ld. CIT(A), which is placed at page nos.44 to 55 of the paper book. The ld. CIT(A) confirmed the order of the AO and dismissed the appeal of the assessee. 6. Aggrieved with the order of the ld. CIT(A), the assessee is in appeal before us. 7. Before us, it was submitted by the Ld. AR that the assessee had filed additional ground vide letter dated 19.03.2024, which goes to the root of the matter as the assessment order passed is without jurisdiction and is liable to be quashed. It was further submitted that all the facts relating to the additional grounds are already part of record and requested that the same may kindly be admitted and adjudicated first before taking the other grounds filed on merits. In this regard, the ld. AR drew our attention to the copy of satisfaction dated 30.06.2022 recorded by the for initiating proceedings u/s 153C of the Act for AY 2015-16 to 2020-21 and u/s 143(2) of the Act for AY 2021-22; (placed at page no.11 and 12 of the paper) and submitted that the documents seized from t....
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....it in the submission of the assessee that the legal ground raised by way of additional ground goes to the root of the matter as it challenges the legal validity of the order u/s 143(3) dated 29.12.2022 passed in pursuance of notice u/s 143(2) of the Act issued on 30.06.2022. Therefore, we first take up the additional ground for adjudication. These additional grounds were not raised before the Ld. CIT(A) nor any similar plea was taken before the AO, but since the additional grounds are purely legal ground and all the facts relating to the same are already part of record, therefore, the same is admitted in view of the decision of the Hon'ble Apex Court in the case of National Thermal Power Corporation [1998] 229 ITR 383(SC) and is hereby adjudicated. 8.1. On perusal of the satisfaction note, it is seen that the same was recorded on 30.06.2022 by the AO after giving a finding that the clone data of Pravin Kumar Jain's Mobile marked as Annexure-5 belongs to the assessee, which has bearing on the determination of total income of the assessee for the relevant assessment years referred to in sub section-1 of section 153A of the Act and it was a fit case for initiating proceedings in th....
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....me in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished u/s 139; (b) Assess or reassess the total income or six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made : Provided that the AO shall assess or reassess the total income in respect of each assessment year falling within such six assessment years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this [sub-section) pending on the date of initiation of the search u/s 132 or making of requisition u/s 132A, as the case may be, shall abate." 21. From the above, it is evident that as per clause (b) of subsection (1) of section 153A and second proviso, the AO can be issue notice for assessment or reassessme....
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....05 to 31.3.2006 2006-07 1.4.2004 to 31.3.2005 2005-06 22. The Assessing Officer has issued notice u/s 153C for A.Y. 2004-05 which is clearly barred by limitation. Therefore, issue of notice u/s 153C issued by the Revenue cannot be sustained on both the above counts, i.e., it is legally not valid as conditions laid down u/s 153C has not been fulfilled and it is barred by limitation. In view of the above, we quash the notice issued u/s 153C and consequently, the assessment completed in pursuance to such notice, is also quashed. 23. Since we have quashed the assessment order itself, the additions challenged by the assessee by way of other grounds of appeal do not survive, and, therefore, do not require any adjudication." 16. We thus, find that the issue raised in the additional ground has been answered in favour of the assessee, by the Coordinate Delhi Bench of the Tribunal in the case of DSL Properties (supra). 17. So far as decision of Hon'ble Delhi High Court in the case of SSP Aviation Ltd. vs. DCIT (supra) relied upon by the Id. CIT(DR) is concerned, we find that it is not helpful to the revenue as in that case also in para no. 14 ....
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.... issue raised in additional ground no. 4 we have quashed the assessment order itself, the additions questioned by the assessee by way of other grounds of the appeal do not survive and, therefore, do not require any adjudication. 20. In the result, the appeal of the assessee is allowed." 9. Therefore, in view of the above decision, the date of recording of the satisfaction will be the deemed date for the possession of the seized documents, which is 30.06.2022 in the present case and the date of search and six years period would be reckoned from this date i.e. 30.06.2022. Therefore, there is merit in the submission of the assessee that the assessment year relevant for previous year in which search was conducted in the case of the assessee will be AY 2023-24 and the six assessment years immediately preceding the assessment year relevant for the previous year in which search was conducted for initiating proceeding u/s 153C of the Act will be AY 2018-19 to 2022-23. Therefore, respectfully following the decision of the cited case, it is held that in the present case, the assessment for AY 2021-22 should have been carried out by issuing notice u/s 153C of the Act and not u/s 1....