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TMI Blog2017 (1) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... er these circumstances, the jurisdiction of the AO in the proceedings u/s 153C was confined to the seized material on the basis of which impugned proceedings u/s 153C were initiated. Thus, the Ld.AO had no jurisdiction to examine the loan of ₹ 35 lakhs received by the assessee from M/s STI Products Pvt Ltd. Thus when the AO himself did not have the jurisdiction to examine the said loan, then how the Ld. Principal CIT can take a view that non examination of loan by the AO made the assessment order as erroneous and prejudicial to the interest of Revenue. - Decided in favour of assessee. - I.T.A. No. 3573/Mum/2016 - - - Dated:- 31-1-2017 - Amit Shukla (Judicial Member) And Ashwani Taneja (Accountant Member) For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly examined and the same cannot be considered in the Order U/s 263 of the Income Tax Act, 1961. Further the details with regards to the difference in the books of account of appellant company and M/s. STI Products India Ltd. has been explained along-with the relevant documents that there was a mistake in the Books of M/s. STI Products India Ltd. while passing the entry in its books of accounts and thereby wrongly transferring the same in the ledger of M/s. Evisco Exim Ltd. instead of appellant company. In conclusion, CIT has set aside the order without examining the documents and explanation filed during the 263 proceedings and mere set aside of the order to such extent is unjustified. Accordingly, the necessary direction should be given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-2016 3. We have gone through the orders passed by the lower authorities. It is noted that original order u/s 153C dated 28-2-2014 was passed in pursuance to search in the office of M/s Convention Hotels Pvt Ltd. Perusal of the assessment order reveals that the proceedings u/s 153C were initiated upon the assessee in relation to some documents seized from the office premises of M/s Convention Hotels Pvt Ltd. Details mentioned in the assessment order shows that the seized material pertained to the transactions that took place between the assessee and said company, M/s Convention Hotels Pvt Ltd. Under these circumstances, the jurisdiction of the AO in the proceedings u/s 153C was confined to the seized material on the basis of which impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Courts and the contention of the assessee has not been rejected on the ground that the impugned addition is based on seized material. Also there is no material on record to suggest that issue regarding additional depreciation on Wind Mill was based on seized material. Therefore, certainly, this issue is other than the additions based on seized material. If it is so then according to the aforementioned decision of Hon'ble Bombay High Court in the case of CIT vs. Continental Warehousing Corporation (Nhava Sheva) Ltd.(supra), the AO would not have jurisdiction to bring such issue in the assessment completed u/s. 153A r.w.s 143(3) and non-consideration thereof in the assessment order would not make the assessment order passed under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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