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TMI Blog2014 (5) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... note to the Assessing Officer of the person upon whom action under section 153C of the Act is required to be taken. But in the instant case, the assessee himself has been subjected to search action, therefore, the assessment under section 153C of the Act is not possible. The right course would be to complete the assessment under section 153A of the Act. Therefore, we do not find any infirmity in the order of the ld. CIT(A), who has examined the issue in the light of the relevant provisions of law and finally annulled the assessment. We accordingly confirm the order of the ld. CIT(A) and dismiss the appeals of the Revenue. - Decided against revenue - C.O. Nos. 21 & 10/LKW/2012 & ITA Nos.547 & 546/LKW/2011 - - - Dated:- 20-5-2014 - SHRI S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in coming to conclusion that since all material was available with the A.O. right from the very beginning, the assessment in instant case should have been done u/s 153A ignoring the fact that in view of the Hon'ble High Court decision in the case of CIT Vs. Vandana Verma (Supra), action u/s 153A could have initiated only against the AOP consisting of three persons namely M/s Ashok Pan Products (P) Ltd., M/s Mudit Impex and M/s Mudit Finance (P) Ltd. 5. That the Ld. CIT (A) has erred in law and on fact in coming to conclusion that the assessment is barred by limitation by 31.03.2006 inspite of the fact notice u/s 153C was issued on 01/11/2006 after recasting of reasons as required u/s 153C of the I.T. Act. 2. The assessee has also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jections and proceeded to complete the assessment for all the years in the case of the assessee. 4. The assessee preferred an appeal before the ld. CIT(A) and reiterated its contentions. The ld. CIT(A) took cognizance of all these facts and has held that once the assessee was subjected to search action under section 132(1) of the Act, no notice under section 153C of the Act can be issued and the correct procedure was to issue notice under section 153A of the Act, which was actually done by the then Assessing Officer. The ld. CIT(A) accordingly annulled the assessment. The observations of the ld. CIT(A) in this regard are extracted hereunder for the sake of reference:- I have carefully gone through the assessment records, assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring date (for assessment u/s 153C) is one year from the end of the financial year in which documents are handed over to the A.O. having jurisdiction. In this case, as I have mentioned earlier, it was the same AO who apart from the appellant had the jurisdiction over the other case, i.e. M/s R.P. Sales and other concerns. Thus, it was the same AO who, right from the very beginning, had all the material available with him and thus, there was no question or occasion of handing over the records or material from one AO to another and, therefore, this provision of section 153B of the Act which extends the time barring date (to one year from the end of financial year in which such material was received by the AO from another AO) would have no app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hatically argued that once the assessee was subjected to search action under section 132(1) of the Act, the assessment can only be framed under section 153A of the Act and not under section 153C of the Act. He has also invited our attention to the copy of Panchnama appearing at page 1 of the compilation of the assessee to show that the assessee was subjected to search under section 132(1) of the Act. It was also contended that the Assessing Officer has issued notice under section 153A(a) of the Act, but no action was taken by the Assessing Officer either to withdraw notice or to complete the assessment under section 153A of the Act. When the assessment was time barred, he resorted to take action under section 153C of the Act for completing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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