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TMI Blog2022 (7) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... nd during the course of search, then the Assessing Officer cannot exercise any power u/s.153C r.w.s.153A of the Act because the power u/s.153A being not accepted, to be exercised redundantly, but the same should be exercised if the search reveals any incriminating material. Hon ble Bombay High Court in the case of Commissioner of Income Tax Vs. Continental Warehousing Corporation (Nhava Sheva) Limited [ 2015 (5) TMI 656 - BOMBAY HIGH COURT] has laid the same proposition. Further, we are of the view that the assessment has to be made u/s.153A of the Act only on the basis of the seized material. This view is also found by the Hon ble Delhi High Court in the case of the Commissioner of Income Tax Vs. Kabul Chawla [ 2015 (9) TMI 80 - DELHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he seized material which forms the basis for satisfaction, fails to result in assessment of income, the Assessing Officer will loose the jurisdiction u/s.153C of the Act. 2.3 The learned CIT(A) failed to appreciate that the Hon ble Delhi High Court in the case of SSP Aviation Limited Vs. DCIT [346 ITR 177] has held that whereas Section 158D refers to the satisfaction of the Assessing Officer that undisclosed income belongs to any person other than the searched person, Section 153C(1) in contrast refers merely to the satisfaction of the Assessing Officer that the valuable article or books of account or document belongs to a person other than the searched person . 2.4 The learned CIT(A) ought to have noted that the Chennai ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crores seized vide ANN/B D/AH/S-1 (file marked Karapakam). 3. Accordingly, your total income for the Assessment Year 2006-2007 is required to be assessed / reassessed in accordance with the provisions of Section 153C r.w.s.153A of the Income Tax Act. 4. The Assessing Officer while completing the assessment made an addition of capital gains from the sale of land at G. Pochampally and at Paiyanoor and also made an addition of the deemed suppressed income from the sale of the above land. Aggrieved, the Assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The CIT(A) quashed the assessment as the Assessing Officer was not having jurisdiction for issuing notice u/s.153C of the Act as there is no incriminating m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing assessment years. Thus in the absence of any seized material / information contained therein, the recording of improper reasons of satisfaction, the Assessing Officer fails to acquire jurisdiction for issuing notices u/s.153C of the Act for A.Y 2006-07, 2007-08 and 2010-11. 4.1.9 Further, mere presence of a document pertaining to a particular year, and its seizure will not confer automatic jurisdiction to the Assessing Officer to issue notice u/s.153C. The Assessing Officer should verify the seized material / information and satisfy himself that the seized material is incriminating and has bearing on the determination of total income of the Assessee for any particular year(s). Then only the Assessing Officer will acquire jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oration (Nhava Sheva) Limited reported in [2015] 374 ITR 645 (Bom) has laid the same proposition. Further, we are of the view that the assessment has to be made u/s.153A of the Act only on the basis of the seized material. This view is also found by the Hon ble Delhi High Court in the case of the Commissioner of Income Tax Vs. Kabul Chawla reported in [2016] 380 ITR 573 (Delhi). Since, the issue is squarely covered in favour of the Assessee and against the Revenue, we upheld the order of the CIT(A) on this issue and the appeal of the Revenue is accordingly dismissed. Since, we have adjudicated the jurisdictional issue in favour of the Assessee, we need not adjudicate the other issues on merits. 8. In the result, the appeal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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