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TMI Blog2015 (10) TMI 2167X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the order dated 3-5-2010 passed by the ld. CIT(A)-III, New Delhi in appeal no. 261/07-08, relating to AY 2000-01. 2. In its appeal the revenue has raised following grounds of appeal: 1. On the facts and in the circumstances ofthe case, the CIT(A) has erred in law and on facts in annulling the assessment made u/s 153C? 2. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts by holding that the seized documents, on the basis of which proceedings u/s 153C were initiated, do not belong to the assessee? 3. On the facts and in the circumstances of the case, the CIT(A) has erred in interpreting Section 153A1153C of the IT Act? 4. The order of the CIT(A) is erroneous and not tenable in law and on facts. 5. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal. 3. In its cross-objections the assessee has taken following grounds: 1. It is contended that the provisions of Section 153A of the Income-tax Act, 1961 (the Act) are not applicable at all and the assessment order passed is] s 153CI 143(3) of the Act is without jurisdiction. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Suncity Alloys Pvt. Ltd. vs. ACIT, (2009) 124 TTJ 674. (iii) Kolkata Bench of IT AT ruling in LMJ International, 119 TT J 214. 12) That the Commissioner of Income Tax (Appeals) has erred in not deciding the issues (Grounds of Appeal) raised by the appellant on the merits of the case. 13) It is contended that the sum of ₹ 67 ,30,272/ - received on account of Commission and Brokerage Services is taxable under Chapter IV-D (income from business or profession) of the Act and not under Chapter IV-F (income from other sources) of the Act. 4. Brief facts of the case are that search and seizure operation in M/s Flex Group of cases was conducted on 23-2-2006. During the course of search, certain documents/ books of account, belonging to the assessee company were seized from the premises of Sh. Manvinder Singh (Party A-10) and M/s Flex Industries Ltd. (now M/s Uflex Ltd. Party B-2), in whose names/ cases warrants of authorization had been issued. These documents were seized vide Annexures A-9 of party A-10 and A-3 of Party B2. These documents, seized from various premises, were as under: Party Nos. Premises Annexure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee company were seized from the premises of Sh. Manvinder Singh( Party A-10) and M/s Flex Industries Ltd (now M/s. Uflex Ltd. Party B-2) in whose names/cases warrants of authorisation had been issued. These documents were seized vide Annexures A-9 of Party A-10, A-3 of Party B-2. The documents seized from various premises are listed as under: Party Nos. Premises Annexure Page Nos. A-10 Residence of Sh. Manvinder Singh A-9 12 and 23 B-2 Office of Flex Industries Ltd. A-3 35 to 66 In the light of the above, I am satisfied that the above case is fit for assessment U/s 53C in accordance with the provisions of section 153A of the 1. T Act as the seized documents listed above belong to M/s Anshika Consultants Pvt. Ltd. being a person other than the person where the search has been initiated. Hence, in order to assess/ reassess the income of the given assessee notice u/s 153C is hereby issued for assessment year 2000-01 to 2005-06. 10. He pointed out that perus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h procedure for issuance of notice and assessment or reassessment in case of the person where a search is initiated under section 132 or books of account, other documents or assets are requisitioned under section I32A after the 31st day of May, 2003. Section I53B lays down the time limit for completion of assessment under section- I53A. Section I53C which is similarly worded to section 158 JJD of the Act provides that where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in Section I53-A he shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person. However; there is a distinction between the two provisions in as much as under section I53C notice can be issued only where the ~ money, bullion, jewellery or other valuable article or thing or books of account or documents. seized or requisitioned belong to such other person, whereas under Section 158BD if the Assessing Officer is satisfied that any undisclosed income belongs to any person, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause no addition had been made by the AO on the basis of these documents. 14. Ld. CIT(A), accordingly, held that documents seized did not belong to the assessee and the AO was not justified in initiating proceedings u/s 153C read with section 153A of the Act and as such the proceedings initiated u/s 153C of the Act were not as per the law. 15. Ld. DR submitted that papers belonging to assessee were found during the course of search at the premises of Sh. Manvinder Singh and M/s Flex Industries Ltd. and, therefore, CIT(A) was not justified in annulling the assessment. 16. Ld. DR submitted that the incriminating material u/s 153A in the context of 153C will be material found course of search belonging to assessee and, therefore, completed assessment will abate. 17. At the outset ld. counsel referred to pages 148-149 of the PB which are documents on the basis of which notice u/s 153C was issued. He pointed out that these are the ledger accounts of Anshika Consultants Pvt. Ltd. (assessee) in the books of AR Airways (P) Ltd. He further pointed out that these ledger accounts are for FY 2004-05 and not for the relevant assessment year 2000-01. 18. Ld. counsel referred to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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