TaxTMI 
TaxTMI 
2024 (12) TMI 634
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....peal read as under: "1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 35,00,000/- made by the AO merely on the basis that the assessee is not involved in the business of wool and did not decide the case on merits 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in concluding that in the remand report AO has acknowledged that the transactions are duly recorded, ignoring the fact that the AO has not commented on the genuineness of transactions and has commented only on business nature of the assessee firm as reported in Form 3CD, in the remand report. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in ignoring the fact that the Assessing Officer vide para 8.4 of the Assessment Order has described the modus operandi of Bajaj Group of companies where in it was specifically mentioned that modus operandi of the assessee is purchase of share at exorbitantly high premium and this fact was not considered by the Ld. CIT(A) 4. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs 4,13....
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....e facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law ignoring the contention of the assessee that the order passed by the learned AO under section 153A rws 143(3) is illegal and bad in law as the same has been passed without having valid jurisdiction. 3. On the facts and circumstances of the of the case, the learned CIT(A) has erred, both on facts and in law. in ignoring the contention of the assessee that the order passed by the learned AO under section 1534 r.ws 143(3) is bad and liable to be quashed as the same has been framed consequent to a search which itself was unlawful and invalid in the eyes of law. 4. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in ignoring the contention of the assessee the AO has erred in passing the order despite the fact that authorization for the search was issued on non-existing entity as well as by the person not authorized to issue such authorization. 5. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law. in ignoring the contention of the assessee that the proceedings initiated ....
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.... objection, by stating that "we are filing additional grounds of cross objection, which go to root of the case in hand", as these grounds are purely legal which may alone sufficient to dispose off the matter / appeal. "11. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of assessee that the assessment year under consideration i.e. AY 2008-09 is beyond the period of ten years from the end of assessment year relevant to the year in which search was conducted and proceeding initiated under section 153A of the Act and the consequent assessment order passed is without jurisdiction and barred by limitation 12. Without prejudice to above, on the facts and circumstances of the case, the notice issued under section 153A of the Act and assessment order is without jurisdiction and barred by limitation as the proceeding for AY 2008- 09have become barred by limitation and subsequent amendment brought by Finance Act, 2017 enlarging the limitation period beyond the six preceding years of search to initiate assessment proceedings has no application in present case." 5. Heard rival submissions and c....
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....ssessment in case of search or requisition. 153A. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003 but on or before the 31st day of March, 2021, the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years and for the relevant assessment year or 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 under section 139; (b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition ....
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.... Explanation 2.-For the purposes of the fourth proviso, "asset" shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account. (2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Principal Commissioner or Commissioner: Provided that such revival shall cease to have effect, if such order of annulment is set aside. Explanation.-For the removal of doubts, it is hereby declared that,- (i) save as otherwise provided in this section, section 153B and section 153C, all other provisions of this Act shall apply to the assessment made under this section; (ii) in an assessment or reassessment made in respect of an assessment year under this section, the tax shall be chargeable a....
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.... 153 of the Act. By virtue of the 2017 Amending Act, significant amendments came to be introduced in Section 153A. These included, inter alia, the search assessment block being enlarged to ten AYs' consequent to the addition of the stipulation of "relevant assessment year" and which was defined to mean those years which would fall beyond the six year block period but not later than ten AYs'. The block period for search assessment thus came to be enlarged to stretch up to ten AYs'. The 2017 Amending Act also put in place certain prerequisite conditions which would have to inevitably be shown to be satisfied before the search assessment could stretch to the "relevant assessment year". The preconditions include the prescription of income having escaped assessment and represented in the form of an asset amounting to or "likely to amount to" INR 50 lakhs or more in the "relevant assessment year" or in aggregate in the "relevant assessment years". C. Section 153C, on the other hand, pertains to the non-searched entity and in respect of whom any material, books of accounts or documents may have been seized and were found to belong to or pertain to a person other than ....
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....which the books of accounts or documents and assets seized are handed over to the jurisdictional AO as opposed to the year of search which constitutes the basis for an assessment under Section 153A. F. While the identification and computation of the six AYs' hinges upon the phrase "immediately preceding the assessment year relevant to the previous year" of search, the ten year period would have to be reckoned from the 31st day of March of the AY relevant to the year of search. This, since undisputedly, Explanation 1 of Section 153A requires us to reckon it "from the end of the assessment year". This distinction would have to necessarily be acknowledged in light of the statute having consciously adopted the phraseology "immediately preceding" when it be in relation to the six year period and employing the expression "from the end of the assessment year" while speaking of the ten year block. G. Insofar as the thresholds put in place by virtue of the Fourth Proviso to Section 153A are concerned and the argument of the writ petitioners of the condition of INR 50 lakhs being an unwavering precondition, we find ourselves unable to sustain that submission bearing in ....
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....r to 01 April 2017 is misconceived, since it proceeds on the assumption that once the period of assessment or reassessment were to come to an end, it would inevitably lead to the creation of a vested right in favour of the assessee. The aforesaid argument proceeds on the incorrect premise of the reassessment provisions controlling or cabining the power conferred by Sections 153A and 153C. Acceptance of the aforesaid contention would amount to ignoring the plain and evident intent of the Legislature for Sections 153A and 153C operating above and beyond the reassessment powers. K. The submission of closure and finality also fails to bear in consideration the indubitable fact that a search is an eventuality which is inherently unpredictable, a circumstance which would defy prophecy and it consequently being wholly irrational to read the time frames pertaining to reassessment as regulating or controlling the period within which an assessment predicated on that event may be initiated. It would be wholly illogical to conceive of a connection between the statutory time frames which are otherwise embodied in the Act and search assessments. In fact the acceptance of this submission....
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....any incriminating document/material was found. On the basis of above fact situation, there is material substance in the submissions advanced on behalf of the assessee that in this case the A.Y. in question i.e. 2008-09 is beyond the period of ten years from the end of the assessment year relevant to the year in which search was conducted and proceeding initiated u/s 153A of the Act and the consequent assessment order passed is without jurisdiction and clearly barred by law and the Ld. AO was not authorized by law to initiate proceedings which was barred. Established legal position cannot be ignored but to be followed in strict manner and if proceedings which are knowingly, that it is barred by law, initiated by competent authority, hardly be allowed to be confirmed. So on the basis of foregoing discussion, submissions and above cited judicial precedents, we hold that whole proceedings in question was barred by law, and consequently the ground nos. 10 and 11 of the cross objection are deserved to be allowed in the favour of assessee. 13. So far the grounds 1 & 2 of Revenue's appeal are concerned, these are related with the alleged deletion, of the addition of Rs. 35,00,000/-. In ....