2010 (6) TMI 883 - AT - Income Tax

Summary

Issues:
The judgment involves the validity of an order passed u/s 153A of the Income-tax Act, 1961.

Summary:
The appeal was filed by the Revenue against the CIT(A)'s order dated 22.09.2008, which declared the order passed u/s 153A as void. The case stemmed from a search at the premises of an individual, where documents belonging to a company were found. Subsequently, notices were issued u/s 153A and assessments were framed. The CIT(A) deemed the order u/s 153A invalid as the documents were impounded during a survey, not a search. The ITAT concurred with the CIT(A) that the AO lacked jurisdiction u/s 153 to assess the taxpayer, leading to the dismissal of the Revenue's appeal.

In the detailed analysis, the CIT(A) highlighted that the incriminating material was impounded during a survey under section 133A, not a search. This distinction was crucial as the AO's jurisdiction u/s 153A was based on the material found during the search, which was deemed invalid. The ITAT upheld the CIT(A)'s finding, emphasizing that the assessment made by the AO lacked legal basis due to the incorrect assumption of jurisdiction u/s 153. Consequently, the appeal by the Revenue was dismissed, affirming the CIT(A)'s decision.