9911796707
TMI Blog2023 (3) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... sued and satisfaction recorded it is clear that the AO has completed the assessment under Section 153C and not under Section 153A of the Act. Since the assessment has been completed under Section 153C of the Act, we are of the view that the assessment framed suffers from infirmity and it is an incurable defect. Hence, we quash the impugned assessment order. Decided in favour of assessee. - ITA No. 1064/Bang/2022 - - - Dated:- 20-2-2023 - Shri George George K. , Judicial Member And Ms. Padmavathy S. , Accountant Member For the Assessee : Shri S. V. Ravishankar , Advocate For the Revenue : Ms. Neera Malhotra , CIT - DR ORDER Per : George George K. , J. M. This appeal at the instance of the assessee is directed against the CIT(A) s order dated 12.10.2022. The relevant assessment year is 2014-15. 2. The brief facts of the case are as follows: - The assessee is an individual deriving salary and interest income. For AY 2014-15 return of income was filed on 12.06.2014 declaring income of Rs.2,88,470/-. Consequent to a search in the premises of Mahaveer Medicare and also the assessee on 19.12.2014 assessment was completed under Section 153C r.w.s 153A r. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.1,50,20,000/- was found. The assessee was asked to explain the source of cash found during the course of search. The assessee in a statement recorded under Section 132(4) of the Act submitted that the cash belongs to Shri Uttam Reddy and assessee is not in a position to prove the same. Therefore assessee voluntarily agreed to disclose income of Rs.1 crore for AY 2014-15 and another sum of Rs. 1 crore for AY 2015-16 to cover up any discrepancy in the books of the assessee and other material found in the premises (including backup of phones and computers). The assessment for AY 2015-16 was completed vide order dated 30.11.2016 under Section 143(3) of the Act r.w.s. 153D of the Act by bringing to tax Rs. 1 crore as declared by the assessee during the course search. The assessee in the meanwhile, on 21.10.2016 filed a retraction statement for assessing Rs. 1crore declared for the relevant assessment year 2014-15. 7. Admittedly, in this case the assessment has been completed under Section 153C r.w.s. 153A r.w.s. 143(3) of the Act for AY 2014-15. It is a fact that search was carried out also in the residential premises of the assessee on 19.12.2014. It was during the course of searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the computation of his income for A Y 2014-15. 4. Issue notice u/s. 153C for A.Y 14-15. (Smt ViJi Seshadri) Assistant Commissioner of Income Tax Central Circle 1(2), Bengaluru 9. The seizure of cash of a sum of Rs.1,50,20,000/- from the residence of Shri Vikash Sethia is also born out from Annexure A of the said recording of satisfaction which was the triggering point for initiation of Section 153C of the Act. The Annexure A reads as follows: - ANNEXURE A Sr No Annexure Page No. Remarks Asst Yrs involved 1. A/VS/ 1 1 During the course of search, cash 1,50,20,000 was found at the residence Sethia. Further, the SMSs and Whatsapp in the Blackberry 0095 belonging to Vikas examined. Vikas Sethia was questioned same. Vikas Sethia in his statement recorded qn -19-12-2014 , in reply to that since he had no satisfactory in respect of the cash found and the iphone, and to cover the discrepancies books of accounts and other material premises including back up of his computers,* was offer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act is not maintainable. .................................. 12. The Hon'ble High Court while considering the above submission of the petitioner had observed as: 18. ........................................ The petitioner being searched person and not Other person as required under section 153C of the Act and in this regard, I find force in the submission made by the learned Senior Counsel appearing for the petitioners ............................................ 13. The relevant finding of the Delhi Bench of the Tribunal (supra) reads as follows: - 9. We have heard the rival contentions and perused the record. The jurisdictional issue which is raised by the assessee by way of ground of appeal no. 1 goes to the root of the jurisdiction invoked by the AO in the present set of appeals. Admittedly, the premises of the assessee were searched on 16.12.2003. Consequent thereto, the requirement of law is that in case the premises of the persons have been searched, then the proceedings to be initiated are by way of issue of notice under section 153A of the Act. The AO in such facts and circumstances has to issue, the aforesaid notice under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
