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TMI Blog2023 (4) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 2010-11):- 2. The assessee has raised the following common ground of appeal:- "1. That the direction issued under section 150 of the Income Tax Act, 1961 by the ld. CIT (Appeals) in para 4.7 of his order, is illegal being outside the scope of the aforesaid provisions in view of the various judicial decisions and therefore needs to be quashed." I.T.A. No. 12829/DEL/2019 :- 3. The Revenue has raised the following substantive grounds of appeal :- "1. The order of Ld. CIT(A) is not correct in law and facts. 2. That on facts and circumstances of the case, the Ld. CIT(A) has erred in holding that the assessing officer could not issue notice u/s 153C of the I. T. Act, 1961 for the A.Y. 2009-10 in view of the amendment U/s 153C and quas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessment order dated 30.12.2017, the assessee preferred an appeal before the ld CIT(A). The ld CIT(A) found that date of writing satisfaction note/ handing over of the relevant material being 14.10.2016, the assessment year in which the date of handing over of the relevant material falls would be AY 2017-18, therefore, the block period for issuing notice u/s 153C read with section 153A would be form AY 2011-12 to AY 2016-17 (6 AYs immediately preceding year 2017-18). Consequently, held that the notices issued u/s 153C for AY 2009-10 and 2010-11 were beyond mandate of the law and quashed the assessment order. 6. Aggrieved by the order of quashing the assessment order the revenue has preferred an appeal in ITA No. 2829/Del/2019 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted error in quashing the assessment order passed u/s 153C read with section 143(3) of the Act. The ld DR further submitted that in view of the amendment to section 153C made by the Finance Act, 2017 which is effective from 01.04.2017 and since the notice issued u/s 153C dated 18.10.2016 which is prior to the amendment in the provision to section 153C of the Act, thus, the ld CIT(A) has committed error in deleting addition of Rs. 1,60,00,000/- made by the AO on account of unexplained cash credit u/s 68 of the Act. 10. Ld. Counsel for the assessee submitted that the satisfaction note for initiating the proceeding u/s 153C by the AO having jurisdiction over the case of 'other person' (assessee) has been recorded on 14.10.2016 and relying upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day person of May, 2003, the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, 78so far as may be, apply accordingly as if such return were a return required to be furnished under section 139; (b) assess or reassess the total income of six assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years referred to in subsection (1) of section 153A :" The provisions of Sec.153C of the Act, shown in bold letter and underlined as given above were substituted by the Finance (No.2) Act, 2014 w.e.f 1.10.2014 for the following words "and that Assessing Officer shall proceed against each of such other person and issue such other person notice and assess or reassess income of such other person in accordanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld CIT(A) are not applicable to the case in hand. Therefore, in our considered opinion, the ld CIT(A) has committed an error in quashing the assessment order. Since, the ld CIT(A) has not decided the issues involved in the appeal on merit, we deem it fit to direct the ld CIT(A) to decide the appeal on merit. Accordingly, by upholding the validity of proceedings u/s 153C of the Act on the legal issue and we direct the ld CIT(A) to decide the appeal filed by the assessee on merit after hearing the assessee. 16. In the result, appeal filed by the Revenue in ITA No. 2829/Del/2019 is allowed for statistical purposes. ITA NO. 1557-1558/Del/2019 17. In both the above appeals the assessee has challenged the legality or otherwise the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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