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TMI Blog2024 (2) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee on this issue are allowed. Since, we have held that the assessment made u/s 153C r.w.s. 153A is time barred. As argued absence of any seized incriminating documents/materials the addition cannot be made in the assessment completed u/s 153C r.w.s. 153A - In the case of PCIT Vs. Abhisar Buildwell Pvt. Limited [ 2023 (4) TMI 1056 - SUPREME COURT] held that in respect of completed or unabated assessment no addition can be made by the AO in the absence of any incriminating material having been found during the course of search u/s 132 or requisition u/s 132A of the Act. On perusal of the assessment order, we noticed that there is no reference to any seized documents or materials based on which the addition was made by the AO. AO in the course of assessment proceedings issued show-cause notice to establish the genuineness of the transaction and creditworthiness of the parties on the basis of the submission of the assessee that it had taken various unsecured loans in the assessment year under consideration. Therefore, it is very much clear that the addition made u/s 68 of the Act is not based on any seized documents or materials impounded in the course of search or requisition. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preceding assessment years from the date of recording of satisfaction i.e. 02.02.2016 and, therefore, the assessment made u/s 153C r.w.s. 153A of the Act is beyond the block of six years. 4. We have heard the rival submissions and perused the record before us and the decisions relied on. 5. We observed that an identical issue has been decided by the coordinate bench of the Tribunal in the case of ACIT vs. M/s Ankit Nivesh Management Pvt. Limited (supra), wherein the Tribunal following various decisions including the jurisdictional High Court held that since there is no specific date of handing of material in the satisfaction note, the date of satisfaction note is to be reckoned as the date of handing over the material and the time limit calculating the six years has to be calculated from this date. While holding the coordinate bench observed as under: 11. We have heard the rival submissions and also perused the relevant finding given in the impugned orders as well as material referred to before us. The assessee is engaged in the business of investment and sale purchase of shares during the relevant assessment year and filed its return of income u/s 139 of the Act on 30.10.2007 decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53A of the Act and the reference to the date of search would have to be construed as the reference to the date of recording of satisfaction. It would follow that the six assessment years for which assessments/reassessments could be made under Section 153C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the AO of the Assessee. In this case, it would be the date of the recording of satisfaction under Section 153C of the Act, i.e., 8 th September, 2010. In this view, the assessments made in respect of assessment years 2003-04 and 2004-05 would be beyond the period of six assessment years as reckoned with reference to the date of recording of satisfaction by the AO of the searched person. It is contended by the Revenue that the relevant six assessment years would be the assessment years, prior to the assessment year relevant to the previous year in which the search was conducted. If this interpretation as canvassed by the Revenue is accepted, it would mean that whereas in case of a person searched, assessments in relation to six previous years preceding the year in which the search takes place can be reopened but in case of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed person. The Court also stated that - This position again stands settled bv the decision in RRI Securities Ltd (supra). The fact that the Revenue's SLP against the said decision is pending in the Supreme Court does not make a difference sine the operation of the said decision has not been stayed. c. Hon ble High Court of Delhi in the case of Raj Buildworth Pvt. Ltd. (113 taxmann.com 600) has held that dated - 23.10.2018 The Assessing Officer of the search party and the respondent assessee was the same. In such a factual matrix, the Assessing Officer could not have been initiated and passed an Assessment Order under section 153C of the Act for the Assessment Year 2007-08 as the same was beyond the period of six years from the end of the financial year in which the satisfaction note was recorded by the Assessing Officer. d. Hon'ble High Court of Delhi in the case of Sarwar Agency Pvt. Ltd. (85 taxmann.com 269) has held that: Held : Mr. Ashok Manchanda, learned Senior Standing counsel for the Appellant, sought to pursue this Court to reconsider its view in RRJ Securities (supra). The Court declines to do so for more than one reason. First, for reasons best known to it, the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld.CIT(A) on the merits of the addition/disallowance becomes infructuous. 7. Coming to cross objection filed by the Assessee for the AY 2013-14 the assessee challenged the order of the Assessing Officer as unsustainable on the ground that in the absence of any seized incriminating documents/materials the addition cannot be made in the assessment completed u/s 153C r.w.s. 153A of the Act. Reliance was placed on the decision of the Hon ble Supreme Court in the case of PCIT Vs. Abhisar Buildwell [454 ITR 212] and the decision of the Jurisdictional High Court in the case of CIT Vs. Kabul Chawla [380 ITR 573]. Ld. Counsel for the assessee further submits that since the Ld.CIT(Appeals) decided the merits of the addition/disallowance in favour of the assessee. Ld. CIT(A) has chosen not to decide this ground raised before him. 8. We have heard the rival submissions, perused the orders of the authorities below. In the case of PCIT Vs. Abhisar Buildwell Pvt. Limited (supra) the Hon ble Supreme Court held that in respect of completed or unabated assessment no addition can be made by the Assessing Officer in the absence of any incriminating material having been found during the course of sea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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