9911796707
TMI Blog2015 (11) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act in the absence of any material found during the course of search operation cannot be justified. Accordingly, the orders of the lower authorities are set aside for assessment years 2001-02 to 2004-05. Now coming to the assessment proceedings for the assessment years 2005-06 and 2006-07, the assessee fled the return of income on 10.10.2005 for the assessment year 2005-06. The time limit for issuing notice u/s 143(2) for the assessment year 2005-06 is available upto 30.9.2006. In fact, the search operation was conducted on 4.7.2006. For the assessment year 2006-07, the due date for filing return of income has not expired and the assessee filed the return of income after the search on 31.10.2006. Therefore, for the assessment years 2005-06 and 2006-07, the assessment proceedings are pending, hence, the proceedings initiated by the Assessing Officer u/s 153C are valid for the assessment years 2005-06 and 2006-07. Un-genuine receipts - Held that:- The genuineness of the deposits made in assessment year 2001-02 cannot be examined in assessment year 2005-06 since the assessment proceedings were not pending on the date of search operation. Therefore, even assuming that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Madurai, for assessment years 2001-02 to 2006-07. Since common issue arises for consideration in all the appeals, we heard them together and disposing of the same by this common order. 2. In the assessee s appeals, the main ground is with regard to jurisdiction of the Assessing Officer to pass assessment order u/s 153C of the Act. 3. Shri T. Vasudevan, ld. Counsel for the assessee submitted that there was a search in the premises of the partners of the assessee-firm Shri S. Soundararajan and Shri S. Manivannan on 4.7.2006. The ld. Counsel clarified that no search was conducted in the premises of the assessee, therefore, assessment was framed u/s 153C of the Act. Referring to the assessment orders, the ld. Counsel submitted that the assessee filed the return of income in the regular course for the assessment years 2001-02 to 2006-07. In fact, the time limit for issuing notice u/s 143(2) for assessment year 2004-05 expired on 9.10.2006. The time limit for issuing notice u/s 143(2) has also expired on the date of search for the assessment years 2001-02, 2002-03 and 2003-04. The ld. Counsel submitted that for assessment year 2005-06, return of income was in fact filed on 10.10.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, certain incriminating materials were found. According to the ld. DR, the assessee is a partnership-firm engaged itself in the business of money lending on hypothecation of two and three wheelers. A survey operation was also conducted in the premises of the assessee u/s 133A of the Act. During the course of survey operation, a computer printed statement containing names of about 600 depositors and amount due to them as on 30.6.2006 was found and it was impounded. The full addresses and details of the depositors could not be furnished by the assessee before the lower authorities. For the assessment year 2006-07, the assessee offered a sum of ₹ 50 lakhs with regard to non-genuine deposits. In addition to that, the assessee has also offered a sum of ₹ 5 lakhs towards interest pertaining to these deposits. According to the ld. DR, since the computerized statement of the depositors was found, the Assessing Officer has rightly assumed jurisdiction u/s 153C of the Act. 6. We have considered the rival submissions on either side and also perused the material available on record. It is not in dispute that the assessee is a partnership firm. There was a search in the resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils of relative deposits and the deposits separately. In other words, the deposits received from close relatives are disclosed separately and other than the close relatives are also disclosed separately. Therefore, the Revenue has full knowledge about the deposits received by the assessee before the date of search. Hence, this Tribunal is of the considered opinion that the computer statement said to be found during the course of survey operation in the premises of the assessee cannot be considered to be a new material. It is not the case of the Revenue that any material relating to receipt of deposit was found in the premises of the partners during the course of search operation. Admittedly, during survey operation, the computer printed list of depositors was found. Therefore, this Tribunal is of the considered opinion that the material found during the survey operation cannot be made use of while computing block assessment consequent to the search operation u/s 132 of the Act. 9. We have gone through the provisions of section 153A of the Act. Second proviso to sec. 153A of the Act clearly says that assessment or reassessment shall be framed for the six assessment years which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 is available upto 30.9.2006. In fact, the search operation was conducted on 4.7.2006. For the assessment year 2006-07, the due date for filing return of income has not expired and the assessee filed the return of income after the search on 31.10.2006. Therefore, for the assessment years 2005-06 and 2006-07, the assessment proceedings are pending, hence, the proceedings initiated by the Assessing Officer u/s 153C are valid for the assessment years 2005-06 and 2006-07. 12. Now coming to the merit of the addition for the assessment year 2005-06, the assessee has shown in the balance sheet the deposits of ₹ 1,41,67,695/-. Out of this, ₹ 17,56,932/- pertains to deposits from relatives. The Assessing Officer has simply made addition on the basis of his finding recorded for assessment year 2001-02. We have gone through the assessment order for assessment year 2001-02. The Assessing Officer, referring to the statement said to be recorded from eight persons by the Addl. Commissioner of Income-tax during the course of survey operation, found that the deposits were non-genuine. It is well settled principles of law that during the course of survey, the Revenue authorities are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, this Tribunal is of the considered opinion that there is no justification for making any addition for the assessment year 2005-06. 13. Now coming to assessment year 2006-07, the CIT(A) computed the peak credit at NIL. The Assessing Officer says that a sum of ₹ 50 lakhs was admitted by the assessee as undisclosed deposits. The CIT(A) rejected the claim of the assessee to set off the peak credit of ₹ 40,74,441/- for assessment year 2001-02. Since this Tribunal find that there cannot be any block assessment for assessment year 2001-02 u/s 153C of the Act, the income offered by the assessee has to be set off. Therefore, this Tribunal is of the considered opinion that no further addition is called for assessment year 2006-07 also. 14. In view of the above discussion, we are unable to uphold the orders of the lower authorities. Accordingly, the orders of the lower authorities are set aside and the appeals of the assessee stand allowed. 15. Now coming to the Revenue s appeals, in view of our order for assessment years 2001-02 to 2004-05, there cannot be any block assessment u/s 153C of the Act since no proceedings were pending on the date of search operation ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
