TaxTMI 
TaxTMI 
2024 (10) TMI 1780
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....24 in the case of Asra Ahmed are reproduced hereunder: 1. The final assessment order passed by the ADIT (INT TAXN)-2 (herein after referred to as "AO" is erroneous both on facts and in law to the extent the order is prejudicial to the interest of the appellant. 2. The Ld. A.O. grossly erred in invoking the provisions of sec.153C of the I.T. Act without there being any incriminating material found belonging to the appellant during the course of search in the premises of third party. 3. The Ld. A.O ought to have appreciated the fact that the issuance of notice u/s 153C has to be done before the completion of assessment u/s 153A of the Income Of the Income tax Act, 1961 ("the Act") in the case of searched person. 4. The Ld. A.O has erred in issuing notice u/s 153C on 30.03.2022 after lapse of 6 months from the date of completion of assessment u/s 153A i.e.27.09.2021 of the Act which is incorrect and bad in law. 5. The Ld. A.O ought to have appreciated the fact the proceedings u/s 153C shall not be initiated on the same issue as the proceedings u/s 148 has not been closed. 6. The final assessment order u/s 144C(13) passed on 19.01.2....
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....nalty proceedings under section 270A and 271D of the Income Of the Income tax Act, 1961 ("the Act"), 1961. 11. The appellant may add or alter or amend or modify or substitute or delete and / or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal. 3. Brief facts of the case are that the assessee is a non-resident and has filed her return of income for the A.Y.2017-18 on 12.08.2017, declaring total income of Rs. 17,36,260/-. Subsequently, Ld.AO has received information from ACIT, Central Circle-2(3), Hyderabad vide letter dated 19.01.2022 that certain material pertains / relates to the assessee found during the course of search in the case of Skill Promoters Pvt Ltd. The documents seized refers to agreement of sale entered into by Sri Syed Ahmed Ziauddin and Smt. Asra Ahmed with respect to immovable property i.e. building consisting of basement floor, ground, first and second floor admeasuring 722 sq.yds and 153 sq. yds, situated at Road No.10, Banjarahills, Hyderabad vide sale deed document No. 5377 and 5378/2016 dated 19.10.2016 for a sale consideration of Rs. 3,68,00,000/- and Rs. 83,00,000/- respectively. On receipt o....
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.... additions proposed by the Ld.AO. Thereafter, the Ld.AO passed final assessment order u/s 153C r.w.s.144C(13) of the Act, on 19/01/2024 and determined the total income at Rs.4,11,26,293/-. 5. Aggrieved by the final assessment order, the assessee is in appeal before us. 6. The ld. Counsel for the assessee submitted that the final assessment order passed by the Ld.AO u/s 153C r.w.s.144C(13) dated 19.01.2024 is barred by limitation, because as per section 153B of the Act, when notice is issued u/s 153C on 30.03.2022, the time limit for passing assessment order is on or before 31.03.2023. In this regard, he relied upon the decision of Hon'ble High Court of Rajasthan in the case of Principal Commissioner of Income Tax Vs. Virendra Choudhary (2022) 139 taxmann.com 90. Ld. Counsel for the assessee further referring to provisions of sections 144C and 153B submitted that, provisions of section 144C and 153B are separate code itself and whatever time limits prescribed therein is nothing to do with time limit prescribed u/s 153C of the Act. As per the provisions of section 153B and second proviso, the time limit for completion of assessment or reassessment in the case of other pe....
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....Act. In the case of search assessments u/s 153A or 153C, the time limit for completion of assessment has been provided u/s 153B of the Act. As per section 153B, notwithstanding anything contained in any other provisions of this Act, the Ld.AO shall make an order of assessment or reassessment in respect of each assessment year falling within six assessment years referred to in Clause (b) sub section (1) of section 153A within a period of 21 months from the end of the financial year in which the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed. Second proviso to section 153B prescribed time limit for making the assessment or reassessment in the case of the person referred to in section 153C and as per said proviso, the assessment shall be completed within 18 months from the end of the financial year in which the last of the authorizations for search u/s 132 or 12 months from the end of the financial year in which the books of accounts or documents or assets seized are handed over to the Assessing Officer having jurisdiction over such other person whichever is later. Since the provisions of section 153B itself is a separate code and time limit pro....
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....ation in his total income. The assessee, after receipt of draft assessment order shall have two options. As per subsection (2) of section 144C, on receipt of draft assessment order, the eligible assessee shall within 30 days file its acceptance of the variations to the Assessing Officer or file his objection, if any, to such variation with the DRP. If the eligible assessee file his acceptance to the Assessing Officer, then the Assessing Officer shall complete the assessment within one month from the end of the month in which the acceptance is received. In case an eligible assessee files objection before the DRP, then the DRP shall issue its direction within 9 months from the end of the month in which the draft order is forwarded to the assessee. Thereafter, the Assessing Officer shall pass his final assessment order within one month from the end of the month in which such direction is received. 9. In the present case, there is no dispute with regard to the fact that the appellant has filed his objection against the draft assessment order passed by the Assessing Officer before the DRP. Therefore, in ordinary course, the extended time limit for completion of the assessm....
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....s. We find the AO in the instant case made addition of Rs.2,55,75,000/- u/s 69 of the I.T. Act on the ground that as per the sale deed, the assessee had paid total sale consideration of Rs.2,55,75,000/- on 5.10.2016 to the vendors by way of cash, that the vendors have admitted and acknowledged the same and the assessee could not explain the source of such payment made for purchase of the immovable property. While doing so, he further held that the sale deed in itself is conclusive evidence and the contents of the same could not be proved further and a civil suit filed by the 3rd party claiming the title to the said property after the registration of sale deed between the assessee and the vendors will not negate the contents of the sale deed. 23.1 It is the submission of the learned Counsel for the assessee that the assessment order passed by the Assessing Officer is barred by limitation. It is also his submission that the assessee being an NRI and settled in UAE does not have any economic activities in India, therefore, there cannot be any addition of unexplained investment in the hands of the assessee as these falls under article 22 of Indo-UAE DTAA which makes such incom....
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.... Provided that where the notice under section 148 is served on or after the 1st day of April, 2019, the provisions of this subsection shall have effect, as if for the words "nine months", the words "twelve months" had been substituted." 25. Thus, a perusal of the above provision clearly shows that the time limit for completion of the assessment in the present case lapses on 31.3.2022. However, the final assessment order u/s 144 r.w.s. 144C has been passed on 30.01.2023 which is beyond the time limit prescribed u/s 153(2). Since the assessment order has been passed on 30.01.2023 as against 31.03.2022, therefore, thee same, in our opinion, is barred by limitation and accordingly, the assessment order is liable to be quashed. We therefore, quash the re-assessment proceedings being barred by limitation. Since the assessee succeeds on this preliminary legal issue, the other grounds become academic in nature and therefore, are not being adjudicated. 11. In this view of the matter and considering the facts and circumstances and also by following the decision of the Hyderabad Bench of the Tribunal in the case of Farooq Ali vs. Income Tax Officer (Supra), we are of t....