9911796707
TMI Blog2024 (5) TMI 1437X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2020-21. The impugned order was emanated from the order of the ld. Asstt. Commissioner of Income Tax, Central Circle-1, Jalandhar, (in brevity the AO) order passed u/s 143(3) of the Act. 2. The assessee has taken the following grounds: "1. That on the facts and circumstances of the case and in law, the impugned order dated 31.05.2023 passed by CIT(Appeals)-5, Ludhiana is perverse and erroneous order, liable to be quashed. 2. That on the facts and circumstances of the case and in law, the assessment for AY 2020-21 had to be made in accordance with section 153C and the assessment order framed under section 143(3) is bad in law. 3. Without prejudice to the above, on the facts and circumstances of the case there is no evidence whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case and in law, the notice issued u/s 143(2) by ITO Ward 1(1) Jalandhar is invalid as the order u/s 127 transferring jurisdiction from ITO Ward 7(1) Ludhiana is an illegal order. 3. That the case of the assessee for AY 2020-21 has been illegally selected for manual scrutiny in contravention of CBDT Guidelines as there was no basis for issuing notice u/s 153C. The addition on the basis of seized material has to be under the section 153C and not under section 143(3) of the Act." 3.1 During the hearing the ld. AR only pressed the Ground No. 3 of Additional Ground and Ground 2 of main Ground. The Ground -2 of Additional Ground is not pressed. 4. The brief fact of the case is that the assessee the assessee is a licensed IELTS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tices were issued u/s 153A to the employee of the assessee and it was accepted therein that the cash seized belongs to the assessee and not her employee and consequently the assessment order in the employee's case were passed u/s 153A on 15.03.2021 accepting the returned income. Further notices were also issued to the assessee for AY 2014-15 to AY 2019-20 under section 153C and for AY 2020-21 i.e the assessment year relevant to the requisition of cash, the notice was issued u/s 143(2) of the Act for determining the total income of the assessee. There was no incriminating material unearth as the cash in hand available with proprietorship firm as in excess of the cash seized as such the assessment u/s 153C for AY 2014-15 to 2019-20 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO of assessee i.e ITO Ward 1(1) on 16.03.2021 i.e FY 2020-21 and relevant AY would be AY 2021-22. As per section 153C the assessment has to be framed for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made. Further The first proviso to sub section (1) of section 153C further states that, in case of other than searched person in whose case action is proposed to be taken u/s 153C, the reference to the date of initiation of shall be construed as reference to the date of receiving the books of account or documents or assets seized by the ld. AO having jurisdiction over such other person. Therefore, on conjoint reading of subsection (1) of 153C and fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the proviso [to Section 153(c)(1)] is confined in its application to the question of abatement. 10. This Court is of the opinion that the revenue's argument is insubstantial and without merit. It is quite plausible that without the kind of interpretation which SSP Aviation adopted, the A.O. seized of the materials - of the search party, under section 132 - would take his own time to forward the papers and materials belonging to the third party, to the concerned A.O. In that event if the date would virtually "relate back" as is sought to be contended by the revenue, (to the date of the seizure), the prejudice caused to the third party, who would be drawn into proceedings as it were unwittingly (and in many cases have no concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be impermissible for him to commence such enquiry if it is apparent that the documents/assets in question have no bearing on the income of the Assessee for the relevant assessment years." In the said case, Hon'ble Court observed that six years must be construed as commencing from the date of handing over of the documents seized by the assessing officer of the searched entity to the assessing officer of the third party. 5.3. The ld. AR argued that the present case the ld. AO has framed assessment for AY 2020-21 under section 143(3) instead of section 153C therefore the assessment framed is illegal and bad in law. Also, no notice has been issued u/s 153C for AY 2020-21 whereas in the satisfaction note u/s 153C the AO himself admits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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