TaxTMI 
TaxTMI 
2024 (12) TMI 634
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....he 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 4,13,66,321/ made by the AD mere on the basis that assessee is not involved in ....
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.... 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 under section 153A against the appellant and the assessment framed under section 153A r.w.s. 143(3) are in violation of the statutory conditions of the Ac....
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....o 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 carefully scanned the material available on record. 6. The Ld. AR submitted that the Ld. AO had not jurisdiction to issue notice under Section 153A of the Act, for the A.Y. 2008-09, since the search ....
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....h 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 is made and for the relevant assessment year or years : Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years and for the relevant ....
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....tion (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 at the rate or rates as applicable to such assessment year." 9. In the course of hearing, the Ld. AR submitted that the search was conducted on 20.04.2017 and AY. 2018-19 in the assessment year relevant to the previous year in which search was conducted or requisition is made and accordingly 10 years as per explanation 1 of the s....
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....;. 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 the searched person. As in the case of Section 153A, Section 153C was also to apply to all searches that may have been undertaken between the period 01 June 2003 to 31 March 2021. In terms of that provision, the AO stands similarly empowered to undertake and initiate an assessment in respect of a non-searched entity for the six AYs' as well as for "the relevant assessment year". The AYs', which w....
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....om 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 mind the indubitable fact that proceedings for search assessment commence upon the issuance of a notice and the AO at that stage having really not had the occasion to undertake a detailed or in depth examination of the evidence collected or come to a definitive opinion with respect to the total income which may have escaped assessment. Since the computation and assessment of income that is likely to have escaped assessment would at....
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....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 would amount to virtually erasing the non obstante clause contained in Sections 153A and 153C. L. The legislative intent of those provisions having retroactive application is clearly evidenced from the statue declaring that they would apply to all searches conducted between 31 May 2003 to 31 March 2021, and the Fourth Proviso in unambiguous terms extending the applicability of those provisions to all searches conducted post 01 April 2017 and Sections 153A ....
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.... 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 this regards, the Ld. DR submitted that the Ld. AO made above deletion merely on the basis that the assessee is not involved in the business of wool and conclusion of the Ld. CIT(A) is not proper that in the remand report AO has acknowledged that the transactions are duely recorded and ignored this material fact that the Ld. AO has not commented on the genuineness of transaction and has commented on business nature. From the perusal, there is no any substance in submissions adva....