TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 1539
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....ssessee i.e. Honey Arora, at his residence on 06.02.2019. Consequently, notices u/s. 153A of the Act was issued on 17.12.2020 asking the assessee to file the return within 15 days of receipt of the notice. In response to the notice u/s. 153A of the Act the assessee filed the return for the relevant year on 20.12.2020 showing income of Rs. 48,000/-. Subsequently, notice u/s. 143(2) of the Act was issued on 17.01.2021 fixing the case for hearing on 20.01.2021. Notice u/s. 142(1) of the Act alongwith the detailed questionnaires was sent to the assessee on 08.01.2021 and 14.01.2021 for filing its reply on before 11.01.2021 & 20.01.2021. Thereafter, AO made the addition of Rs. 32,21,576- u/s. 69A of the Act and assessed the income at Rs. 32,69,576/- u/s. 153A of the Act. Against the above order, assessee preferred an appeal before the ld. CIT(A), who vide his impugned order has treated the assessment as annulled and allowed the appeal of the assessee. 3. Aggrieved with the order of the Ld. CIT(A), Revenue is in appeal before the Tribunal. 4. I have heard the rival contentions and gone through the facts of the case. Ld. I find Ld. CIT(A) has discussed the issue in dispute elaborately b....
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.... to the Appellant and his family members at the time when the search parties entered the premises of the Appellant. Hence there was no reason to believe to conduct search against the Appellant on the date of search i.e. 06.02.2019. 8.4 It has also been contended that from the perusal of the search warrant, it is clear that the search has been conducted on the Appellant under section 132(1) (c) of the Act. Section 132(c) says that Search can be conducted on an assessee if the Department in consequence of information in his possession has reason to believe that "any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not been, or would not be, disclosed for the purposes of this Act". From the contents of the search warrant it is clear that the search was conducted on Shri Avtar Ltd. and with regard to the search of these persons, the premises of the Appellant were covered. From the whole episode it is clear that search was not conducted on Appellant but it was conducted on the premises of the Appellant in respe....
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....case of M/s H. L. Forex Pvt Ltd recorded on 07.02.2019 at 13.10 PM on oath u/s 132(4) of the Income Tax Act, 1961 during the course of Search proceedings u/s 132 of the Income Tax Act at 3rd floor A-107 Sharda Puri, Ramesh Nagar New Delhi- 110015." 5. The penalty Notice issued by JCIT, Central Range-7 in the subject of notice mentions " Show cause Notice for imposition of penalty for violation of section 269ST of the Income Tax Act, 1961 in the case of Sh. Honey Arora (PAN: ARNPA8541J) in Kochar Group (Dos: 06.02.2019) for the A.Y. 2018-19-reg". The Subject of notice also makes it very clear that it was search on Kochar Group and not on the Appellant. 8.7 On the basis of above documents and notices received by the Appellant it has been argued that there was no search conducted on the Appellant and consequently all assessments done thereafter deserves to be nullified. 8.8 The AO in the reply of RTI has mentioned that seized material and copy of statement was provided to the Appellant during the time of assessment. In this regard the Appellant countered it by stating that the said documents were never provided to him. During the entire assessment proceedings, the Appellant requ....
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.... It is seen that on identical facts and circumstances, a search was also conducted on Shri Sanjay Jain in the above mentioned case on the same date i.e. 06.02.2019 vide search warrant No. 7263- the very next warrant following the warrant in the case of the premises of the Appellant bearing No.7262- which was also issued in the name of Shri Avtar Singh Kochar, Shri Gagandeep Singh Kochar, Shri Hari Singh Kochar and M/s HL Forex Pvt. Ltd and not in the name of Shri Sanjay Jain. In the above case it has been held by Hon'ble Delhi ITAT that assessment under section 153A cannot be upheld in the name of such person in whose case search action is not initiated u/s 132. The relevant paragraph of the order in the case of Sanjay Jain (supra) is reproduced below:- "22. The provisions of Sec. 153A of the Act mandates that to issue a notice u/s 153A, a search must have been initiated in case of the said person based on a warrant of authorization issued in the name of very such person, i.e., to invoke the provisions of Sec. 153A, initiation of search u/s 132 in case of the said person is a pre- requisite. The person referred under Sec. 153A and Sec. 132 is one & the same person. It is an u....
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....ot being adjudicated upon here. However, for a discussion on some of the other grounds raised here, appellate order passed by me u/s 250 of the Act in respect of the order u/s 143(3) of the Act for assessment year 2019-20 in Appellant's own case, may be referred to. 9. In the result, the appellant's appeal is allowed." 5. Ld. DR relied upon the order of the Assessing Officer. 6. Per contra, Ld. AR for the assessee has relied upon the order of the Ld. CIT(A). Moreover, he submitted that the captioned appeals are not maintainable, in view of the CBDTs' Circular No. 05/2024 dated 15.03.2024 which was later amended by the CBDT's Circular No. 09/2024 dated 17.9.2024, as the tax effect in respect of the aforesaid assessment years i.e. 2011-12 to 2015-16 is less than 60 lacs in each year and on this account the captioned appeals are not maintainable and also the case of the assessee also does not fall within the exceptions as contained in CBDT's Circular No. 05/2024 dated 15.03.2024. 7. In the background of the aforesaid discussions and upon careful perusing the finding of the Ld. CIT(A), as reproduced above, I note that Ld. CIT(A) has rightly observed from the perusal of the....