TaxTMI 
TaxTMI 
2025 (12) TMI 291
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....om the common search action dated 15/10/2013 in the group cases of Shayona Group in which the assessee was also covered, hence, these appeals have been heard together and are being disposed of by this common order for the sake of convenience. 2. The assessee, in his appeals, has taken legal issues as the very validity of the assessments framed u/s. 153A of the Act for AY 2013-14 and u/s. 144/143(3) of the Act for AY 2014-15. The contention of the ld.AR is that the said assessments have been framed without issuing the mandatory notices by the Assessing Officer (AO) u/s. 153A of the Act as well as u/s. 143(2) of the Act. He has further contended that even the assessments have been framed in a hurried manner without affording opportunity to the assessee to defend the impugned additions and even without considering the return of income filed by the assessee. 3. As requested by both the Ld. Representatives of the parties, the legal issues raised by the assessee are taken up first for adjudication. Assessee's appeal in IT(SS) No.46/Ahd/2018 for AY 2013-14 is taken as the lead case. 4. The brief facts of the case are that a search and seizure action u/s. 132 of the Act was carrie....
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....153C of the Act and he issued notice u/s. 153C of the Act on 27/2/2015. 4.4. It is relevant to mention here that pursuant to the search action in the case of the assessee, though initial assessment proceedings were started u/s. 153A of the Act by the DCIT Cent.Cir-2(4) on 14/03/2014, however, the case was transferred by the CIT (Central) on 25/11/2014 to DCIT Cent.Cir- 2(2) and a parallel proceedings were initiated u/s. 153C of the Act by way of issuing notice dated 27/2.2015. However, the DCIT Cent.Cir-2(4) was unaware of the aforesaid parallel proceedings. He continued to proceed with the assessment u/s. 153A of the Act by way of issuing notices u/s. 143(2) & 142(1) of the Act, etc. The assessee, however, filed objections against the aforesaid parallel assessment proceedings going on and objected to the jurisdiction DCIT Cent.Cir-2(4) to frame the assessment u/s. 153A of the Act on the ground that his case has been transferred by the competent authority, i.e. DCIT Cent.Cir-2(2) vide order dated 25/11/2014. 4.5. At this stage, the Ld. Counsel for the assessee has brought our attention to the relevant para at Page No.5 of the assessment order, wherein, the AO in the ongoing p....
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....014 get invalidated because of start of fresh proceedings with effect from 25/11/2014 u/s. 153C of the Act. Thereafter, the proceedings, u/s. 153A of the Act were started a-fresh subsequent to the transfer of the case from DCIT Cent.Cir-2(2) to ACIT Cent.Cir-2(4) vide order of the competent authority dated 21/03/2016. On 22/03/2016, the Ld. ACIT Cent.Cir-2(4) issued a fresh notice to the assessee u/s. 153A of the Act requiring the assessee to file the return of income by 28/03/2016. This fact itself shows that the earlier proceedings carried out by the ACIT Cent.Cir-2(4) u/s. 153A of the Act were treated as dropped and fresh proceedings were initiated u/s. 153A of the Act requiring the assessee to file the return by 28/03/2016. Here, it is pertinent to mention here that as observed above, the assessee in response to the earlier notices issued by ACIT Cent. Cir.- 2(4 ) had already filed letters stating that earlier filed return for AY 22/12/2013 be treated the return filed in response to the notice u/s. 153A of the Act. However, at that time, the jurisdiction lied with DCIT Cent.Cir-2(2). However, after the transfer of jurisdiction to him vide order dated 21.03.2016, the ACIT Cent.C....
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....as without jurisdiction as the order conferring his jurisdiction by the Pr.CIT (Central) dated 21/03/2016 was communicated/dispatched to him on 23/03/2016 is concerned, we do not find any force of the said contention. It is apparent on the record that the case was transferred to the ACIT Cen.Cir-2(4) by the competent authority on 21/03/2016 and, hence, from 21/03/2016 the concerned ACIT Cen.Cir-2(4) had gotten the jurisdiction to proceed with the assessment proceedings u/s. 153A of the Act. Merely because there is a stamp on the document that the said document was dispatched on 23/03/2016, in our view, does not have any adverse effect so far as the exercise of jurisdiction by the Ld. ACIT Cent.Cir-2(4) u/s. 153A is concerned. It is possible that the communication would have been made to the AO through some other mode also, otherwise there was no reason for the AO to issue a fresh notice u/s. 153A of the Act to the assessee on 22/03/2016. The very factum of issue of fresh notice u/s. 153A of the Act requiring the assessee to file the return of income by 28/03/2016, itself, shows that the AO by that time already got communication of the said order of the Ld.Pr.CIT (Central), Ahmedaba....
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...., Chandigarh ITAT. 2. Sanjay Duggal vs. ACIT, ITA No. 1813 of 2019, Delhi ITAT. 3. PCIT vs. Shreelekha Damani, 307 CTR 218, Bombay High Court. 4. ACIT vs Serajjudin & Co., 454 ITR 312, Orissa High Court, which is affirmed by Hon'ble Supreme Court in SLP(C) Diary No(s). 44989/2023 dtd. 28.11.2023. 5. PCIT vs Siddharth Gupta, 450 ITR 534, Allahabad High Court. 6. CIT vs Shiv Kumar Nayyar, 8 NYPCTR 1064, Delhi High Court. 7. PCIT vs Anuj Bansal, 7 NYPCTR 1020, Delhi High Court. 8. PCIT Versus Sapna Gupta [2022 (12) TMI 887], (Allahabad HC) 9. DCIT Central vs Utility supply (P) Limited. [2025] 174 Taxmann.com 250 (Mumbai - Trib) 10. Maheshwari Coal Benefication & Infrastructure (P) Limited [2025] 175 Taxmann.com 615 (Nagpur ITAT). 7.2. Moreover, the principles of natural justice have not been followed and the assessment has been framed without application of mind and without giving any opportunity to the assessee to present his case. Therefore, the same is bad in law on this score also. 8. So far as the contention of the Ld. DR that the matter may be restored to the file of AO for fresh assessment is....