TaxTMI 
TaxTMI 
2023 (10) TMI 1471
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....reinafter referred to as "the Act"), arising out of the orders dated 28.03.2014 & 27.03.2014 passed by the ITO, Ward-4(3)/Ward-7(2)(3), Bangalore under Section 147 r.w.s. 143(3) of the Act for Assessment Years 2006-07 & 2007-08. 2. Since both the appeals filed by the same assessee these are heard analogously and are being disposed of by a common order for the sake of convenience. ITA No. 771/Bang/2017 - A.Y. 2006-07 3. The brief facts leading to this case is this that the appellant firm purchased a piece of land measuring 52152 sq.ft. known as "Minerva Mills Property, Bangalore, from K/s. National Textile Corporation (APKK & M) Ltd. for a consideration of Rs. 8,90,00,000/- on 03.01.2007. Thereafter the assessee entered into an....
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....eferred appeal before the Hon'ble High Court at Karnataka and by and under an order dated 28.10.2022, Hon'ble Jurisdictional High Court has been pleased to remit the jurisdictional issue to the file of the Ld. ITAT for adjudication of the same with the following observations: "6. Undisputed facts of the case are, based on the agreement found during the search in the premises of M/s Davanam Jewellers Pvt. Ltd., the assessment was reopened for A.Y 2006-07. The assessment order does not Indicate the procedure followed in re-opening the assessment. In addition protective assessment for A.Y 2007- 08 has also been completed. 7. We have perused the agreement. Shri Chandrashekar is right in his submission that though the agreement is undated, ....
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.... Counsel is this that whenever incriminating documents found in search under Section 132 of the Act belongs/relates to person other than the searched person, it was necessary for the Ld. AO of the searched person to record a satisfaction that such incriminating documents belong to a person other than the searched person so as to proceed against such other person under Section 153C of the Act. No such recording of satisfaction to that effect has been done, in the instant case and consequently, the proceeding initiated under Section 148 of the Act suffers from illegalities, as the proceeding not having been initiated under Section 153C of the Act failing which the entire proceeding is become void-ab-initio and thus liable to set aside. On thi....
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.....8 Insofar as the submission on behalf of the respective respondents - assessees that by way of amendment to Section 153C by Finance Act, 2015, it brings into its fold, the assessees - persons, who were not so far covered by it and, therefore, it affects the substantive rights of the assessees and, hence, it should not be made applicable retrospectively, is concerned, the submission seems to be attractive but deserves to be rejected. As observed hereinabove, even the unamended Section 153C pertains to the assessment of income of any other person. The object and purpose of Section 153C is to address the persons other than the searched person. Even as per the unamended Section 153C, the proceeding against other persons (other than the searche....
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....and purpose of the Act / Statute shall be avoided by the Court. If the interpretation as canvassed on behalf of the respective respondents is accepted, in that case, even the object and purpose of Section 153C namely, for assessment of income of any other person (other than the searched person) shall be frustrated. 11. In view of the above and for the reasons stated above, the impugned common judgment and order passed by the High Court is held to be unsustainable and the question, i.e., "Whether the amendment brought to Section 153C of the Income Tax Act, 1961 vide Finance Act, 2015 would be applicable to searches conducted under Section 132 of the Act, 1961 before 01.06.2015, i.e., the date of amendment?", is answered in favour of the R....