TaxTMI 
TaxTMI 
2025 (12) TMI 1856
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....days. In explanation for sufficient in intentional cause beyond the control of assessee, petitions for condonation are filed for all the years under consideration. Application along with affidavit for AY 2013-14 are reproduced as under: 3. Going through the contents of the condonation petition and affidavit, we find substance in the request of the assessee, who is an uneducated person. The communication of the impugned orders was not received by the assessee through email or SMS, which could have come to his notice only when e-portal of department has been logged into by his chartered accountant. Nothing on records suggests any intentional or deliberate attempt of the assessee to delay the filing of appeal. We, thus, in the interest of justice condone the delay in filing of aforesaid appeals, so as proceed to adjudicate the same in terms of grounds of appeal raised therein. 4. All the aforesaid appeals pertain to same assessee, emerging from search and seizure action on Allana Group, having identical, interconnected and interwoven facts, therefore, these appeals, for the sake of brevity are heard together and are disposed off under this common order. 5. The issue raised in....
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....nt Order) 15. The Hon'ble Supreme Court in CIT v. Jasjit Singh [2023] 458 ITR 437(SC) has categorically held that the first proviso to section 153C(1) governs not merely abatement but also the starting point for computation of the six assessment years in the case of a person other than the searched person. The Hon'ble Court held that the six-year block must be reckoned from the date on which the seized material is handed over to the jurisdictional Assessing Officer of the other person, and not from the date of search in the case of the searched person (Relevant para 9 and 10 of the judgement) (Copy of the said judgement is attached herewith as Annexure 5 at Page no. 49 to 54.) 16. In view of these undisputed facts, and considering the settled legal position, the financial year relevant for the purpose of section 153C becomes FY 2020-21, and consequently, the assessment year relevant to the "search" in the case of the assessee is AY 2021-22. We have also made a chart for the purpose of reckoning six assessment years immediately preceding the year of search for issuing notice under section 153C at Page 247 of PB. Applying the above binding precedents to the ....
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....found to belong to or pertain to a person other than the searched person. As in the case of section 153A, section 153Cwas also to apply to all searches that may have been undertaken between the period 01 June 2003 to31 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 would consequently be thrown open for assessment or reassessment under section 153C follows lines pari materia with section 153A. D. The First Proviso to section 153C introduces a legal fiction on the basis of which the commencement date for computation of the six year or the ten year block is deemed to be the date of receipt of books of accounts by the jurisdictional AO. The identification of the starting block for the purposes of computation of the six and the ten year period is governed by the First Proviso to section 153C, which significantly shifts the reference point spoken of in section 1534(1), while defining the point from which the period of the "relevant assessment year" is to be calculated, to the date of receipt....
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....h reference to the date of search in the case of the searched person is contrary to the statutory mandate and binding precedent. By approving and applying the reasoning of Jasjit Singh (SC) and Ojjus Medicare (Del HC), the Hon'ble Bombay High Court has thus put the issue beyond any pale of doubt, rendering the computation of the block of six assessment years in derogation thereof legally unsustainable. 19. As such, since satisfaction note is stated to have been recorded on 22.09.2020, the relevant assessment year of search becomes AY 2021-22, and the block of six assessment years under section 153C would comprise AYs 2015-16 to 2020-21. Consequently, AYs 2013-14 and 2014-15 fall outside the statutory block of six years and are thus barred by limitation, rendering the assumption of jurisdiction and the assessments for those years void ab initio." 6.3 In rebuttal to aforesaid submissions of the assessee, the revenue also had furnished a written submission, which is extracted here under for the sake of interpretation: Sub: WRITTEN SUBMISSION IN THE CASE OF MOHAMMED SALEEM ITA NO. 3862/M/2025, ITA NO. 3950-3955/M/2025] 1) Regarding AY 13-14 & AY 14-15,....
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....nt years or years referred to in sub section (1) of section 153A] * Inserted by the Finance Act, 2017, w.e.f 1-4-2017. Decision of Hon'ble Supreme Court in Jasjit Singh is distinguished as matter was involved prior to amendment brought into the Act. Therefore, it is respectfully submitted that decision of Apex Court may not be applicable in present case. 3) Regarding Net Profit @0.5% made by Assessing Officer, it is respectfully submitted that assessee was not doing business on commission basis. This fact was confirmed by purchaser also on statement u/s 132(4) of the Act and it is also a fact that no TDS has been deducted by purchaser on payment against purchase from appellant. Although turnover exceeds the prescribed limit for tax audit, it is admitted fact that no books of account are maintained by appellant and audited." It is also admitted fact that no stock register, purchase register and sale register was maintained. Therefore, his version of Rs. 0.15/kg cannot be accepted. Further, working of monetary term on sale of Rs. 0.15/kg was not given before Assessing Officer as well as concerned CIT(A) and before Hon'ble bench als....
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....to stretch span of assessment u/s 153C r.w.s. 153A upto 10 years. However, for 4 assessment years, beyond 6 preceding assessment years, the AO has to have in his possession books of accounts or other document or evidence, which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or likely to amounts to Rs. Fifty Lakh or more in the relevant assessment year or in aggregate in relevant assessment years. As per assessment order for AY 2013-14 and 2014-15, the addition made was Rs. 8,53,345 and Rs. 22,78, 569/-, which are neither independently nor collectively exceed the amount of Rs. 50 Lakh, neither it was the case of the ld. AO, as per entire assessment order that such amount is likely to exceed Rs. 50 Lakh, so the proviso and explanation to bring these two years (AY 2013-14 and 2014-15) within the meaning of "relevant assessment years", as per provisions of section 153(1)(a) r.w.4th proviso and explanation 1 of the said sections fails and the assumption of jurisdiction by the Ld. AO, would be construed as beyond his jurisdiction for the years beyond six preceding assessment years. Accordingly, we hold that the preconditions to reopen th....
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....n 143(3). Framing a regular assessment for a year which statutorily falls within the 153C block constitutes a jurisdictional error going to the root of the matter, rendering the assessment non est and void ab initio. 21. This position flows directly from the proviso to section 153A(1), which mandates that all pending assessments for the six assessment years forming part of the block shall abate, and thereafter only one consolidated assessment for each of those years can be framed under the special code contained in sections 153A/153C. Once abatement operates by force of statute, the Assessing Officer is divested of jurisdiction to proceed under section 143(3), and any assessment so framed is legally unsustainable. The special provisions of section 153C r.w.s 153A override the general assessment machinery, and compliance therewith is mandatory and not procedural. 22. The above principle has been judicially affirmed by the Hon'ble ITAT, Mumbai Bench, in D G Land Developers (P.) Ltd. v. ACIT[2024] 166 taxmann.com 620 (Mumbai - Trib.), wherein, after relying upon the decision of the Hon'ble Supreme Court in Jasjit Singh (supra), the Hon'ble Coordinate benc....
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....ed 04.11.2024 Following Jasjit Singh (SC) and Ojjus Medicare (Del HC), held that assessment framed under section 143(3) for a year forming part of the 153C block is non est in law. ⮚ Radha Rani v. ACIT, ITA No. 214/Asr/2023, Amritsar Bench, order dated 10.01.2024 Held that where seized material is used against a non-searched person, then if the AY falls with immediately six preceding years reckoned for the substituted dated of search as per first proviso to section 153C, the assessment must necessarily be framed under section 153C and not under section 143(3). ⮚ Rakesh Kumar Kataria v. DCIT, ITA No. 159/Chd/2020, Chandigarh Bench 'B', order dated 15.04.2024- Held that where seized material belonging to a non-searched person is used, the assessment must necessarily be framed under section 153C, and an assessment framed under section 143(3) without following section 153C is void ab initio, further holding that for a non-searched person the six-year block is to be reckoned from the date of handing over of material as per the first proviso to section 153C, following Jasjit Singh (SC) (Supra)." 7.3 Per contra Ld. CITDR, representing the revenue....
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....he makes payments to farmers in cash. On being asked about the PAN of the purchase parties, the assessee showed his inability to provide the same. On being queried as to how books of accounts are prepared for the financial transactions entered into by him with Allana group, hestated that he provides weighment slip and payment voucher provided by Allana group to his CA which is being incorporated in books of accounts. He also stated that he has been supplying animals to Allana group in his individual capacity as well as in the name of its partnership firm namely, M/s. Nanne Gulzar & Co. (AALFN4781E). And, nature of transactions in the said firm is similar to the one explained by him. 8.4 The disputed transactions by the assessee and the basis of assessment has been summarized by the AO, as under: 1. The assessee is claimed to be into the commission business and supplying Buffaloes to the Allana group of entities after procuring from farmers. Also, he has been given a small place to work in the slaughter house at Ghazipur run by Allana group. 2. PAN, Address and other relevant details of purchase parties could not be provided by the assessee. 3. He faile....
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.... figure of the assessee, who had declared a gross profit ranging between 0.07% to 0.26% of total credits in his bank account for the years under consideration. It is also submitted that if a fair average % would be estimated, the assessee, inspite of having legal grounds thorough which the entire addition may have deleted, would agree to offer the additional income based on fair estimation to settle the litigation. 8.9 It is also submitted that for AY 2017-18, no GP rate estimation should have been done, since the return income of that year was accepted by the revenue under scrutiny assessment proceedings and no new fact or incriminating material was found during the search. 8.10 A chart showing, returned income of the assessee, credit in bank account, commissioned earned, net profit, addition made, assessed income etc submitted before us, the same is extracted here under for better appreciation of the facts: Mohamad Saleem - BIHPS6247K AY 2013-14 to AY 2019-20 S. No. A.Y Section of Assess ment Total Bank Credits Commissi on Income/ Gross Profit Ratio Gross Profit Ratio Net Profit Net profit Ratio Returned Income ....
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....d lead to further verification of facts, that whether any incriminating material was surfaced during the search or not, while the legal grounds are not pressed by the ld. AR, thus are rendered being dismissed as withdrawn. Accordingly, the estimate of profit for AY 2014-15 to AY 2018-19 would be 0.18% or the declared GP by assessee whichever is higher shall be adopted. Ld. AO is directed accordingly, to give effect to this order after factual verifications. 8.14 In result the appeal of assessee in 3950 to 3954/Mum/2025 for AY 2015-16 to 2018-19, are partly allowed for statistical purposes. 9. In combined result, ITA 3862, 3950 & 3955/Mum/2025 (AY 2013-14, 2014-15 & 2019-20) are allowed and ITA 3951 to 3954/Mum/2025 (AY 2015-16 to 2018-19) are partly allowed for statistical purposes, in terms of our aforesaid observations. Order pronounced in open court on 30.12.2025. ============= Document 1 To, The Hon'ble Members, ncome-tax Appellate Tribunal, Mumbai IN RE: MOHAMMAD SALEEM PAN: BIHPS6247K ASSESSMENT YEAR: 2013-14 to 2019-20 Subject: - Application for condonation of delay in filing the Appeals before the Hon'ble Income Tax Appellate Tribunal ('ITAT....
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....justice should not be thwarted by technical or procedural considerations. The Hon'ble Supreme Court in Collector, Land Acquisition v. Mst. Katiji & Ors. [(1987) 167 ITR 471 (SC)] has laid down that a liberal and pragmatic approach should be adopted while considering applications for condonation of delay, particularly where the explanation is bona fide. 9. In view of the foregoing facts and circumstances, it is respectfully prayed that this Hon'ble Tribunal may be pleased to condone the delay of 120 days in filing the present appeal and admit the same for adjudication on merits, in the interest of justice and equity. 10. The contents of this application have been read over and explained to the Appellant in Hindi, and he affirms the same to be true and correct to the best of his knowledge and belief. Yours Sincerely, d- selec- MOHAMMAD SALEEM [APPELLANT] Enel: Affidavit for Condonation of Delay along with supporting documents BEFORE INCOME TAX APPELLATE TRIBUNAL, MUMBAI IN THE MATTER OF: MOHAMMAD SALEEM PAN: BIHPS6247K ASSESSMENT YEAR: 2013-14 to 2019-20 AFFIDAVIT I, Mohammad Saleem, s/o Mr. Shafiquddin, aged about 59 years, R/o 6395, Gali ag hi- ....