TaxTMI 
TaxTMI 
2024 (9) TMI 1383
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....oup on 26.10.2007. The assessee filed its return of income for AY 2008-09 declaring a total income of Rs. 55,96,22,255/-. A notice under Section 143 (2) as also Section 142 (1) of the IT Act was issued, consequent to which vide Assessment Order [AO] dated 31.12.2009 the Assessing Officer4 assessed the taxable income as Rs. 115,89,54,044/- and the balance tax payable at Rs. 44,31,32,567/-. 3. It is further forthcoming that a survey under Section 133A of the IT Act was conducted on 25.3.2008 and search under Section 132 of the IT Act was conducted on 1.4.2008 in respect of one Sri Manoj Kumar Jain [MKJ], wherein the Revenue alleges to have recovered various documents with regard to the transactions of the said MKJ with the assessee, which were impounded. 4. Vide order dated 31.12.2009, the AO also dealt with the issues pertaining to the alleged unaccounted transactions of the assessee with the said MKJ. It referred to various documents that were recovered in the search conducted as well as the statements of MKJ. After considering the same, the AO recorded a finding that MKJ carried out transactions on behalf of Lad group and made substantial cash payments to Anil Lad and his gr....
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....g with learned counsel Sri M. Lava for the assessee submits that the moment the articles recovered from the search of another person are taken into consideration by the AO, he also ought to have assumed jurisdiction under Section 153C of the IT Act and the procedure of the AO in continuing the proceedings under Section 143 (3) of the IT Act is erroneous. Hence, it is submitted that the order of the Tribunal is just and proper. Hence, he seeks for dismissal of the above appeal. 9. The submissions of the learned counsel for the Revenue and the learned Senior Counsel for the assessee have been considered and the material on record has been perused. Re. substantial question of law No. 1: 10. It is forthcoming that the Tribunal while adjudicating regarding the disallowance of deduction claimed under Section 10B of the IT Act has noticed that the said aspect is covered by a coordinate Bench judgment of this Court in the case of Tata Elxsi Ltd., v. ACIT ACIT (2015) 127 DRT 327 (Kar). Having regard to the fact that the Tribunal has decided the matter in accordance with a judgment of this Court, the Revenue has not demonstrated as to how the same is erroneous. Hence, the substantia....
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....n 153C of the Act is different when compared to a regular assessment. The jurisdiction to make an assessment under section 153C of the Act arises when satisfaction is reached that the materials found in the course of search of some other person have a bearing on the determination of the income of the assessee. Further, in the first proviso to section 153C of the Act, it is provided that the reference to the date of search in the second proviso to section 153A of the Act; dealing with abatement of pending proceedings on the date of search; shall for the purpose of the persons proceeded under section 153C of the Act be construed as the date on which the seized materials are received by the AO. 7.6.4 In the case on hand, we find that there was a search under section 132 of the Act in the case of the assessee on 26.10.2007. After the regular assessments proceedings under section 143 (3) of the Act were taken up by the assessee and during the pendency thereof; the AO received material / information from the AO of Shri. Manoj Kumar Jain. As per the second proviso to section 153C of the Act, the assessment proceedings pending under section 143 of the Act in the case of the assess....
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....) of the Act as the scope of assessments framed under sections 143 (3) and 153C of the Act are quite different. In that view of the matter, we hold that the protective additions made by the AO in the impugned order of assessment for Assessment Year 2008-09 dated 31.12.2009, are contrary to the provisions of the Act and are therefore to be deleted. Similarly, the addition sustained by the CIT(A) of Rs. 6,45,000/- on substantive basis as profit from trading in iron-ore based on the material found and seized in the search conducted in the case of Shri. Manoj Kumar Jain is also hereby deleted. It is accordingly ordered. Consequently, the additional grounds raised by the assessee are allowed." (emphasis supplied) 12. It is relevant to note that Chapter VI of the IT Act contemplates the procedure for assessment, wherein various stipulations are provided in terms of Sections 136 to 153 of the IT Act. Section 153A, 153B and 153C have been inserted by the Finance Act, 2003 w.e.f., 1.6.2003, which specifically contemplates assessments in cases of search or requisition. Section 153A of the IT Act contains various stipulations with regard to the person searched and Section 153C of ....