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2020 (10) TMI 1166 - HC - Income TaxAssessment framed u/s 153A - Warrant of Authorization was issued jointly - HELD THAT - Whether the assessee had produced the Warrant of Authorization or the Panchanama can only be ascertained by the Tribunal. Therefore, in the facts and circumstances of the case, we deem it appropriate to quash the Order passed by the Tribunal and to remit the matter to the Tribunal for decision afresh in accordance with law. All contentions of both the parties are kept open on merits of the matter.
Issues:
1. Validity of the assessments done under Section 158-BC r.w.s 143(3) of the Income Tax Act. 2. Legality of annulling block assessment order when rulings of the High Court are pending. 3. Sustainability of annulling block assessment order due to the issuance of a joint warrant. 4. Legality of the assessment under Section 153A of the Act based on an illegal search. Issue 1: Validity of Assessments under Section 158-BC r.w.s 143(3): The appeal concerned the validity of assessments done under Section 158-BC r.w.s 143(3) of the Income Tax Act for the Assessment Year 2004-05. The Tribunal had annulled the assessments, prompting the revenue to appeal. The High Court admitted the appeal based on substantial questions of law regarding the justification of annulling the assessments. The Tribunal's decision was challenged on the grounds of legality and compliance with the provisions of the Income Tax Act. Issue 2: Legality of Annulling Block Assessment Order: The legality of annulling the block assessment order was questioned, especially when the rulings of the High Court were pending. The Tribunal's decision to annul the assessment under Section 153A of the Act was based on the issuance of a joint warrant, which the Tribunal deemed as not maintainable. The revenue contended that the Tribunal's reliance on previous court decisions was erroneous and that the assessment should stand based on the provisions of Section 292CC of the Act. Issue 3: Sustainability of Annulling Block Assessment Order due to Joint Warrant: The appeal raised concerns about the sustainability of annulling the block assessment order due to the issuance of a joint warrant. The Tribunal's decision was based on discrepancies between the joint warrant of authorization and the individual assessment made by the assessing authority. The High Court found factual discrepancies in the Tribunal's order and decided to remit the matter back to the Tribunal for a fresh decision in accordance with the law. Issue 4: Legality of Assessment under Section 153A based on Illegal Search: The facts leading to the appeal involved a search conducted at the Assessee's premises, leading to the issuance of a Notice under Section 153A of the Act. The Assessee challenged the legality of the search and subsequent proceedings, which culminated in the Assessing Officer framing an assessment under Section 143(3) read with Section 153A of the Act. The legality of this assessment was a central issue in the appeal, with the Tribunal ultimately annulling the assessment based on the joint warrant issue. In conclusion, the High Court remitted the matter back to the Tribunal for a fresh decision, emphasizing the need for factual accuracy and compliance with the law. All contentions of the parties were kept open, and the Tribunal was directed to dispose of the appeal within six months from the date of the order. The High Court did not address the substantial questions of law framed in the appeal due to the remittance of the matter for reconsideration.
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