TaxTMI 
TaxTMI 
2025 (3) TMI 1845
X X X X Extracts X X X X
X X X X Extracts X X X X
....A/YHPL/PH/04. These documents contain the details of transactions between the assessee and M/s. Yugandhar Housing Private Limited. It was noticed that the assessee purchased two plots from M/s. Yugandhar Housing Pvt Ltd by paying the on money of Rs. 90,00,000/- in cash to the seller. Sri M. Maheswara Reddy, the Managing Director of M/s. Yugandhar Housing Private Limited has confirmed the receipt of on money from the assessee. Based on the seized documents and the confirmation by the Managing Director of M/s. Yugandhar Housing Private Limited, the Ld. AO made addition of Rs. 90 lakhs as unexplained investment and added the same to the total income of the assessee while framing the assessment U/s. 143(3) of the Act. Aggrieved by the order of the Ld. AO, the assessee preferred an appeal before the Ld. CIT(A). Before the Ld. CIT(A), the assessee contended the validity of the assessment order passed U/s. 143(3) of the Act without issuing notice U/s. 153C of the Act. The Ld. CIT(A) considering the submissions of the assessee, allowed the appeal. On being aggrieved by the order of the Ld. CIT(A), the Revenue is in appeal before the Tribunal by raising the following grounds of appeal: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mitted that the assessment order was passed U/s.143(3) of the Act and not U/s. 153C of the Act by the Ld. AO. The Ld. AR further submitted that the Ld. AO relied on the documents seized in the premises of M/s. Yugandhar Housing Private Limited on which the warrant of search was issued. He further argued that based on the seized material, notice U/s.153C of the Act ought to have been issued by the Ld. AO after recording the satisfaction. The Ld.AR also submitted that in the instant case, the Ld. AO failed to issue notice U/s. 153C of the Act and therefore, the assessment order passed U/s. 143(3) of the Act without issuance of notice U/s. 153C of the Act is void ab initio. 5. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. It is an undisputed fact that the Ld. AO in his order referred to the incriminating material seized during the course of search in the case of M/s. Yugandhar Housing Private Limited to make an addition in the case of the assessee. It is a settled law that both the Ld. AOs have to record their satisfaction with respect to every assessment year when the documents or incriminating mater....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years as referred to in sub-section (1) of section 153A except in cases where any assessment or reassessment has abated. (2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of CBDT dated 20.08.2018 after obtaining prior approval from the Pr.CIT, Vijayawada. Accordingly, notice u/s.143(2) of the Act dated 28.09.2018 was issued to the assessee. Copy of AO's letter dated 27.09.2018 seeking prior approval of PCIT, Vijayawada, screen-shot of online approval given by the PCIT, Vijayawada on 27.09.218 and copy of notice u/s.143(2) dated 28.09.2018 are attached herewith for kind perusal. It is submitted that no notice u/s.153C of the Act was issued in this case for the A.Y.2017-18 as per record." 6.3.3. As could be seen from the AO's comments no notice u/s. 153C was issued to the appellant. Notice u/s. 143(2) dated 28.09.2018 was issued to the assessee. The notice u/s. 143(2) was issued relying upon the Instruction No. 4/2018 of CBDT dated 20.08.2018 regarding manual selection for complete scrutiny during the F.Y. 2018- 2019. The Para 1(iii) of Instruction No. 4/2018 deals with search & seizure cases interalia it stipulates that assessment in search & seizure cases to be made under sections 153A, 153C, 158B, 158BC and 158BD r.w.s. 143(3) of the Act should be selected for complete scrutiny and also returns filed for A.Y. relevant to previous year in ....