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TMI Blog2016 (8) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... /2015, 122/Bang/2015, 123/Bang/2015, 124/Bang/2015, 125/Bang/2015 - - - Dated:- 4-7-2016 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER For The Appellants : Shri S. Muthukrishnan, CA For The Respondent : Shri Jahanzeb Akhtar, CIT(DR) ORDER These are appeals preferred by the assessees against the respective order of the CIT(Appeals)-VI, Bangalore on the common grounds. I, however, for the sake of reference extract the grounds raised in ITA No.118/Bang/2015 :- 1. The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The appellant denies himself liable to be assessed by invoking the provisions of section 153C of the Act, which is unauthorized and misconceived under the facts and in the circumstances of the appellant's case. 3. The order of assessment is also bad in law in as much as, the search in the case of the searched person i.e., M/s. PRATHIBHA JEWELLERY HOUSE, wherefrom the impugned proceedings resulting in the impugned order is made is bad in law as it is ultra-vires the provisions of Section 132[1][a], [b] and [c] of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Hon'ble Supreme Court in the case of GKN DRIVES HAFT reported in 259 ITR 19, in the context of the challenge to the proceedings initiated u/s.147 of the Act, by issuance of notice u/s.148 of the Act, since, the proceedings u/s.153C of the Act, are essentially in lieu of or similar to proceedings initiated for escapement of income u/s.148 of the Act and only to obviate the cumbersome procedure before a notice u/s.148 of the Act, is issued to assess the income escaping assessment. The assessment made is violation to the principles of natural justice and requires to be annulled. 8. The learned CIT[A] is not justified in sustaining the addition made of ₹ 5,23,985/- as interest received u/s.244A of the Act on the refunds due for the year under appeal under the facts and in the circumstances of the appellant's case. 9. The authorities below failed to appreciate that neither the income-tax payable or paid or the interest payable or paid for the default or for the delay in paying the income-tax is not an allowable item of expenditure and therefore, on the reverse logic neither the refund receivable alongwith interest, which is only a measure of refund receivab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made. Meaning thereby the AO has jurisdiction to frame the assessment only with respect to the six assessment years immediately preceding the assessment year relevant to previous year in which such search is conducted. 5. In the instant case, undisputedly the search was conducted in the group of Prathibha Jewellery House on 2.5.2010 and the AO having jurisdiction over the assessee received the information on 2.5.2011 on which date the case was notified. After recording the reasons for initiation of the proceedings, notice u/s. 153C of the Act was issued on 8.8.2011. Therefore, the relevant previous year in which the AO having jurisdiction over the assessee has received the material is 2011-12 and the relevant assessment year is 2012-13. Therefore, the relevant six assessment years preceding to the assessment year 2012-13 are upto A.Y. 2006-07. Therefore, the AO has no jurisdiction to frame the assessment for the AY 2005-06. 6. Per contra, the ld. DR contended that the AO has jurisdiction to frame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of section 153A: Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to subsection (1) of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person: 8. On a careful perusal of the aforesaid provisions of section 153A and section 153C, I find that the AO u/s. 153A or sec. 153C issued a notice to the assessee on account of search for framing assessment for six assessment years preceding to the assessment year relevant to previous year in which such search is conducted or requisition is made. For the purpose of section 153C, the reference to date of initiation of search u/s. 132 or making of requisition u/s. 132A in the second proviso to sub-section of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. Undisputedly, the AO has initiated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the AO having jurisdiction over the searched person, there is no infirmity in the initiation of the proceedings u/s. 153C of the Act. 12. The ld. counsel for the assessee has also raised an argument that no incriminating material was found with regard to the interest on refund of income-tax received by the assessee and these facts were noted by the AO during course of assessment proceedings over the assessee. But in this regard, no satisfactory evidence is placed on record. It was a mere submission, whereas the ld. DR has contended that the facts relating to receipt of interest on refund of income-tax is part of incriminating material found during the course of search. In order to substantiate these facts, the ld. DR has invited my attention to the order of the AO in which he has recorded that during the course of search, books of account and documents marked A/SNS, A/PJH and A1/SNM were seized u/s. 132(8) of the Income-tax Act and the seized material contained documents belonging to the assessees. In the seized material, the facts relating to receipt of interest on refund of income tax was found and during the course of assessment proceedings, the assessee has not establi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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