TaxTMI 
TaxTMI 
2024 (11) TMI 1060
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.... of the Act. 1.1 That both the notice issued u/s 153C of the Act and assessment framed u/s 153C of the Act were without satisfying the statutory preconditions contained in the Act and therefore without jurisdiction and therefore deserves to be quashed as such.. 1.2. That while upholding the assumption of jurisdiction the learned Commissioner of Income Tax (Appeals) has failed to appreciate that since neither money, bullion, jewellery or other valuable article or thing belonging to the appellant and nor any books of accounts or documents pertaining to the appellant or any information contained therein relating to the appellant were seized as a result of search the assumption of jurisdiction u/s 153C of the Act was illegal, invalid and unsustainable. 1.3 That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in upholding the assumption of jurisdiction despite the fact that in absence of any valid satisfaction having been recorded both in the case of searched person and, the appellant action u/s 153C of the Act was in excess of jurisdiction. 2. That the learned Commissioner of Income Tax (Appeals) has failed....
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....assessment order came to be passed u/s 153A (1)(b) of the Act on 18/12/2018 for Assessment Year 2011-12 and 2012-13 by making certain additions. Aggrieved by the assessment orders for Assessment Year 2011- 12 and 2012-13, the Assessee preferred Appeals before the CIT(A) and the Ld. CIT(A) vide order dated 29/09/2023 upheld the partial addition by applying rate of 1% on the income from commission on total credits and debits reflected in the bank statement of the Assessee. Aggrieved by the order of the Ld. CIT(A) dated 29/09/2023, the Assessee preferred the present Appeals on the grounds mentioned above. 4. The Ld. Counsel for the Assessee vehemently submitted that in the years under consideration, the satisfaction has been recorded on 25/09/2018, but the block years were opened for the period Assessment Year 2011-12 to 2016-17, considering the amendment brought to Section 153C of the Act, vide Finance Act, 2017 w.e.f. 01/04/2017, the assessment order passed for the Assessment Years under consideration (A.Y 2011-12 & 2012-13) are void ab initio. Further the Ld. Counsel has also relied on the order of the Co-ordinate Bench in the case of Marconi Infratech Vs. ACIT in ITA No. 3126 t....
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....e further considered the CBDT Circular being No.2/2018 dated 15.02.2018 annexed at page 2 of the paper book filed before us, the relevant portion thereof is as follows: "80.1 The provisions of clause (c) of the section 197 of the Finance Act, 2016 provide that where any income has accrued, arisen or been received or any asset has been acquired out of such income prior to commencement of the Income Declaration Scheme, 2016 (the Scheme), and no declaration in respect of such income is made under the Scheme, then, such income shall be deemed to have accrued, arisen or received, as the case may be, in the year in which a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or section 148 or section 153A or section 153C of the Income-tax Act is issued by the Assessing Officer, and provisions of the said Act shall apply accordingly. 80.2 In view of the various representations received from stakeholders, section 197 of the Finance Act, 2016 has been amended so as to omit clause (c) of the said section. 80.3 Applicability: This amendment takes effect retrospectively from 1st June, 2016. 80.4 However, in order to protect the inter....
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....RTI Query, it was stated that since the ld. AO of BPTP Ltd and the Assessee was same, therefore, no separate satisfaction was recorded in the file of BPTP Ltd before assuming jurisdiction in case of Assessee u/s 153C of the Act. Further satisfaction was recorded in the case of the Assessee on 19.08.2009 by the ld AO which is placed at page No. 17 to 20 of the PB. However, on 19.08.2009 itself, notice u/s 153C of the Act were issued to the Assessee for Assessment Years 2005-06, 2006-07 and 2007-08. Admittedly, no notice u/s 153C was issued for Assessment Year 2009-10 and assessment was concluded on 15.12.2011 u/s 143(3) of the Act. In case of Shri Jasjit Singh (supra) the revenue challenged the order of the coordinate bench dated 05.11.2014 wherein, it was held that in case of the assessee the date of receipt of the seized material would be the date of search and six-year period would be reckoned from that date. The coordinate bench in that case quashed the assessment framed u/s 143(3) of the Act for Assessment Year 2009-10 where the satisfaction note was recorded and material belonging to the assessee was received on 16.06.2009. The Hon'ble Delhi High Court on appeal upheld the....
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....ng six years from A.Y. 2011-12 to A.Y. 2016-17. He, however, submits that in case of the assessee who happens to be the "person other than the searched person", provisions of section 153C are applicable and in such case, the "date of search or date of requisition" as referred to in section 153A is substituted by the "date of handing over of documents by the assessing officer of searched person to the assessing officer of other person". 6. On this premise, he continues to submit that, the assessing officer in his capacity as A.O. of the searched person has recorded satisfaction on 29.03.2019, which establishes that, at the earliest, it is the date of 29.03.2019, when the assessing officer can be presumed to have got the documents in his capacity as assessing officer of the appellant, on the basis of which proceedings u/s 153C have been initiated. Since the date of such recording of satisfaction on 29.03.2019 falls in previous year 2018-19 relevant to A.Y. 2019- 20, the immediately preceding six years are A.Y. 2013-14 to A.Y. 2018-19, and, therefore, the notice u/s 153C for A.Y. 2012-13 could not have been issued by the learned Assessing Officer, as the same are barred by li....
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....he person searched; whereas the satisfaction recorded by the learned Assessing Officer of the searched person on 29/3/2019 had fallen in the assessment year 2019-20 in which case the immediately preceding 6 assessment years would be assessment years 2013-14 to 2018-19; and the date of satisfaction recorded by the learned Assessing Officer of the assessee on 15/5/2019 falls in the assessment year 2020-21 in which case the immediately preceding 6 assessment years would be the assessment years from 2014- 15 to 2019-20. 10. It is, therefore, clear that when we reckon the 6 assessment years with reference to the recording of satisfaction by the learned Assessing Officer of the searched person or with reference to the recording of satisfaction by the learned Assessing Officer of the other person, in either case the assessment year 2012-13 is well beyond such period. So far as this factual position is concerned, it remains unassailable. 11. In respect of the starting point for computation of the block period, the Hon'ble Delhi High Court in the case of Pr. CIT v Sarwar Agency (P.)Ltd. [2017)185 taxmann.com 269 (Delhi) clearly held that in case of other person u/s 153C of....
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....or A.Ys. 2011-12 & 2012-13 since had not fall in the previous 6 years, the assumption of jurisdiction in reopening of assessment under Section 153C of the Act for A.Ys. 2011-12 and 2012- 13, therefore, found to be not maintainable. The same is void ab initio and thus, quashed. 15. In the result, the assessee's appeals for A.Ys. 2011-12 and 2012-13 are allowed." 8. In the present case, the satisfaction has been recorded on 26/09/2018 by the A.O. of the Assessee which falls in the Assessment Year 2018-19, the immediate preceding six years would be Assessment Year 2013-14 to 2018-19, thus, in our considered opinion, the notice issued by the A.O. u/s 153C of the Act for Assessment Year 2011-12 and 2012-13 are beyond the jurisdiction of the A.O. Further we have also considered the fact of the amendment to Section 153C of the Act w.e.f 01/04/2017 having prospective effect as clarified by the CBDT Circular of 2/2018 dated 15/02/2018, thus we find no reason to justify the action of the A.O. to issue notice u/s 153C of the Act for Assessment Year 2011-12 and 2012-13 as the same are not filing in the 'previous six years', accordingly, we are of the opinion that assumption of juri....
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....ourse Road, Sector-54, Gurgaon-122002 belonging to M3M Group seized material te, Annexure A-3 was seized from the aforementioned premises. 3. In view of the above and as per the provisions of subsection (1) of the section 153C of the Act, I am satisfied that the document seized an mentioned above contains information relating to the assessee M/s Social Realtech Pvt. Ltd. and will have beating on the determination of total income for the A.Y. 2011-12 ST 2017-18 0 M/s Social Realtoch Pvt. Ltd. Accordingly, after consideration, it is decided to issue such other person (M/s Social Realtech Pvt. Ltd.) notice as per provisions of section 153C read with section 153A of the Act. Date: 25.09.2018 Sd/- (Sudeep Dabas) Asstt. Commissioner of Income Tax Central circle-II, Faridabad 26.09.2018: Notice u/s 153C r.w. Section 153A of the Act issued. Sd/- ACIT" 13. From the above satisfaction note, it is observed that A.O. failed to narrate the specific documents which he was relying upon for initiating the proceedings u/s 153C of the Act and not year wise satisfaction was recorded so as to assess or reassess the tot....
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....ent seized as mentioned above contains information relating to the assessee M/s. Marconi Infratech Pvt. Ltd. and will have bearing on the Marconi Infratech Pvt. Ltd. Accordingly, after consideration, it is decided to issue such other person (M/s. Marconi Infratech Pvt. Ltd.) notice as per provisions of Section 153C r.w.s 153A of the Act. Date : 31.10.2018 Sd/- [SUDEEP DABAS] Asstt. Commissioner of Income Tax, Central Circle - II, Faridabad" 17. It appears from the above satisfaction note that the material being Annexure A-3 belonging to M3M Group was seized during the search and seizure operation under Section 132 of the Act carried out at Chamber No. Paras Twin Towers, Tower-B, 6th Floor, Golf Course Road, Sector - 54, Gurgaon - 122002. It was further noted by the Learned AO that he is satisfied by the said documents seized containing information relating to the Marconi Infratech Pvt. Ltd. and the same have bearing on the determination of the total income for the A.Ys. 2011-12 to 2017-18 of M/s. Marconi Infratech Pvt. Ltd. and therefore, decided to issue notice to that other person being the assessee before us under Section 153....
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....was not properly recorded and also the notice under Section 153C of the Act was time barred in respect of A.Ys.2001-02 and 2003-04. The Tribunal allowed the assessee to raise issues against such Assessment Years and decided the issue in favour of the assessee by quashing the notice issued in respect of the said Assessment Years. It was held that the documents as claimed to be incriminating material, should establish co-relation with the Assessment Years in questions, in default the notice issued under Section 153C of the Act is not maintainable. With the above observation, the order passed by Tribunal quashing the notice under Section 153C of the Act was upheld. 20. In the case in hand the satisfaction note simply referred the seized material i.e. Annexure A-3 seized during the search and seizure operation carried out on 21.07.2016 at Chamber No. Paras Twin Towers, Tower-B, 6 th Floor, Golf Course Road, Sector - 54, Gurgaon - 122002. Whereas from the plain reading of the language of Section 153C of the Act and judicial pronouncement cited hereinabove it is abundantly clear that in order to reopen assessment of the other person under Section 153C of the Act for the Assessme....