9911796707
TMI Blog2024 (8) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment and after amendment to Section 2 of the Income Tax Act, 1961 by the Finance Act, 2022 with effect from 01.04.2022, since the definition uses the word includes it should be given a wide connotation. Mere substitution of phrase in the written form or as print-outs of data stored with in the written form or in electronic form or in digital form or as print-outs of data stored in such electronic form or in digital form or in will not mean that the information that was stored in a floppy disk, tape or pen drive or any other form of electro-magnetic data storage device did not qualify as books and books of account for the purpose of section 2(12A) of the IT Act, 1961. The amendment to the definition of Books and Books of Accounts to clause (12A) to Section 2 of the Income Tax Act, 1961 by The Finance Act, 2022 w.e.f 01.04.2022 by substituting the words in written form or as print-outs of data stored with in written form or in electronic form or in form or in digitial form or as print-outs of data stored in such electronic form or in digital form was intended to merely align the definition with the current practice on account of the advancement of technology and its widespread ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) under Section 153C of the Income Tax Act, 1961 for the respective petitioners i.e other person could be at the time of or along (or) during the course of assessment (or) immediately after passing of the assessment order of the searched person on 31.3.2022. There is hardly any time lag between 31.03.2022 and the date of satisfaction note(s) under Section 153C of the Income Tax Act for the respective Assessing officers although such satisfaction note(s) could have been issued earlier as per the decision of Calcutta Knitwears. Ludhiana [ 2014 (4) TMI 33 - SUPREME COURT ] These satisfaction notes issued under Section 153C of the IT Act, 1961 of the respective Assessing Officers were in time. It cannot be said that no incriminating material were unearthed during the search. Once notices u/s 153C were issued in time, and since the presence of incriminating material is the only requirement, the assessment had to be completed with the period of limitation under 3rd proviso to Section 153B(1) - As per the 3rd proviso to Section 153B(1) of the Income Tax Act, 1961, the last date for completing the assessment for the notices issued to the respective Petitioners under section 153C of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same date as on the dates when orders passed under Section 153C read with Section 143(3) of the Income Tax Act, 1961, would not mean that the Assessment Orders were without jurisdiction. Therefore, challenge to scrutiny of the above Assessment Order passed under Section 143(3) of the Income Tax Act, 1961 are without merits. Therefore, these Writ Petitions challenging the Assessment Orders passed under Section 143(3) of the Income Tax Act, 1961 are also liable to be dismissed. Addition of amount of unexplained income to the accounts of both the directors of M/s.KLP Projects Private Limtied, i.e., Manish Parmar and Mr. Sunil Khetpalia. Therefore, the Impugned Orders are liable to be quashed and cases are remanded back to the respondents to redo the exercise by adding the unexplained income under Section 69A of the Income Tax Act, 1961 to the income of the Petitioner. - W.P.Nos.11630, 11633, 11635, 11636, 11638, 11644, 12018, 12021, 12686, 12688, 12691, 13114, 13117, 13119, 13125, 13129, 13142, 13432, 13436, 13438, 13442, 13443, 13489, 13494, 13500, 13504, 13602, 13609, 13616, 13619, 13625, 13771, 13775, 13781, 14379, 14384, 14387, 14391, 14918, 14927, 14929, 14930, 14934 16431 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 143(3) of the Income Tax Act, 1961. 9. 12686 of 2023 Shri. G. Rajendran 31.03.2023 2020- 2021 153C r.w.s 143(3) of the Income Tax Act, 1961. 10. 12688 of 2023 Shri. G. Rajendran 31.03.2023 2019- 2020 153C r.w.s 143(3) of the Income Tax Act, 1961 11. 12691 of 2023 Shri. G. Rajendran 31.03.2023 2021- 2022 153C r.w.s 143(3) of the Income Tax Act, 1961. 12. 13114 of 2023 Maneesh Parmar 31.03.2023 2017- 2018 153C r.w.s 143(3) of the Income Tax Act, 1961 13. 13117 of 2023 Maneesh Parmar 31.03.2023 2018- 2019 153C r.w.s 143(3) of the Income Tax Act, 1961 14. 13119 of 2023 Maneesh Parmar 31.03.2023 2019- 2020 153C r.w.s 143(3) of the Income Tax Act, 1961 15. 13125 of 2023 Maneesh Parmar 31.03.2023 2020- 2021 143(3) rws 153C of the Income Tax Act, 1961. 16. * 13129 of 2023 Maneesh Parmar 31.03.2023 2021- 2022 143(3) of the Income Tax Act, 1961. 17. 13142 of 2023 M/s. GRT Jewellers (India) Private Limted 31.03.2023 2017- 2018 153C r.w.s 143(3) of the Income Tax Act, 1961 18. 13432 of 2023 Shri. G.R. Ananthapadmanabhan 31.03.2023 2017- 2018 153C r.w.s 143(3) of the Income Tax Act, 1961 19. 13438 of 2023 Shri. G. R. Ananthapadmanabhan 31.03.2023 2019- 2020 153C r.w.s 143(3) of the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Jewellery Private Limited 30.03.2023 2020- 2021 153C r.w.s 143(3) of the Income Tax Act, 1961. 40.* 14929 of 2023 M/s.RM Appavu Chettiyar Jewellery Private Limited 29.03.2023 2021- 2022 143(3) of the Income Tax Act, 1961. 41. 13771 of 2023 M/s. KLP Projects Private Limited 31.03.2023 2019- 2020 153C r.w.s 143(3) of the Income Tax Act, 1961. 42. 16431 of 2023 Mr. Sunil Khetpalia 31.03.2023 2019- 2020 153C r.w.s 143(3) of the Income Tax Act, 1961. 43. 13775 of 2023 M/s. KLP Projects Private Limited 31.03.2023 2020- 2021 153C r.w.s 143(3) of the Income Tax Act, 1961. 44.* 13781 of 2023 M/s. KLP Projects Private Limited 31.03.2023 2021- 2022 143(3) of the Income Tax Act, 1961. [Note 1: * cases at SI. No: 6, 8, 16, 41 and 45 are regular scrutiny assessment 143(3) of the Income Tax Act, 1961. Note 2: Rest of the AO s are AO s passed under Section 153C read with Section 143(3) of the Income tax Act.] 4. Respective scrutiny assessment orders passed under Section 143(3) of the Income Tax Act, 1961 merely coincides with the proceedings initiated against these petitioners under Section 153C of the IT Act, 1961 for six years, immediately preceding the assessment year relevant to the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pack maintained by Mr. Rajendra Kothari, the Accountant of the searched person . 12. In the statement recorded on 10.11.2020, Mr. Rajendra Kothari, the Accountant of the searched person stated that he was working in the secret office as per the instruction of Mr. Suresh Khatri, the Director of the searched person and that he was using the aforesaid Personal Computer for making entries as per the data provided in a pen drive by Mr. Suresh Khatri and Mr. Kishore Khatri (relative and an employee of Mr. Suresh Khatri) till 27.10.2019. 13. Mr. Rajendra Kothari also stated that after 27.10.2019, the same operation was carried out in the office of the searched person at NSC Bose Road, Sowcarpet, Chennai. He is further alleged to have stated that Mr. Suresh Khatri had provided him with a Red Sandisk Pen Drive along with a Lenovo laptop to access the J Pack and that he used to handover the Laptop and the pen drive to Mr. Suresh Khatri the Director of the searched person after making entries on a regular basis. 14. In his statement for the Financial Year 2020-2021, Mr. Rajendra Kothari also stated that the information was maintained in the sandisk pen drive inside a black laptop which was ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total income of these petitioners for six assessment years immediately preceding the assessment year relevant to the previous year in which search was conducted. 22. It is submitted that the assessment proceedings were concluded based on invalid notices issued under Section 153C of the Income Tax Act, 1961. It is submitted that as per section 153C of the Income Tax Act, 1961, before the commencement of the proceedings to assess or reassess the income of an assessee u/s 153C, the jurisdictional Assessing Officer was required:- i. To record a satisfaction that the books of account or documents or assets seized or requisitioned belongs to or pertain to any information contained therein, related to the petitioner, i.e person other than the searched person referred to in section 153A; and ii. that the books of account or documents or assets so seized or requisitioned had a bearing on the determination of total income of the petitioner s viz a other person for the relevant assessment year or years referred to in section 153C(1). 23. All these Petitioners uniformly state that they had no unexplained transactions with the search person during these assessment. It is further submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for completing the assessment or reassessment in case of other person like the petitioner is twelve months from the end of the financial year in which the last of the authorization for search under section 132 of the Income Tax Act, 1961 was made (or) for requisition under section 132A was executed or twelve months from the end of the financial year in which books of accounts or documents or assets seized or requisitioned were handed over under section 153C to the Assessing officer having jurisdiction over such person, whichever is later. 31. It was submitted that the jurisdictional Assessing Officer of the petitioners and that of the searched person in most of the cases are one and the same. Therefore, the question of handing over of the searched material did not arise and hence the time limit for completing the assessment expired on 31.03.2022, being 12 months from the end of the financial year in which the last of the authorization for search under section 132 or for requisition under section 132A was executed. It is therefore submitted that the second limb of 3rd proviso to Section 153B(1) did not apply as the search was by the same jurisdictional Assessing officer. 32. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils in response to the notice issued u/s 142(1) on or before 27.03.2023. 27.03.2023 + 28.03.2023 Petitioner filed their submissions. 27.03.2023 Petitioner filed objections to the assessment proceedings issued u/s 153C. 29.03.2023 Objections filed by the petitioner were disposed off without providing for cross examinations of Mr. Suresh Khatri and Mr. Rajendra Kothari. 31.03.2023 - Assessment order was passed u/s 143 r/w Section 153C. - Notice of demand u/s 156 of the Income-tax Act, 1961. - Notice u/s 274 r/w Section 271AAC(1) of the Act. 36. The Petitioner Mr. Maneesh Parmar, the Director of M/s. KLP Projects Private has challenged the following assessment order all dated 31.03.2023 in the following Writ Petitions:- S. No. W.P. No. AY Date of notice u/s 153C Date of the Assessment orders Assessed income u/s 143(3) r/w Section 153C (Taxable Income as per ROI + Unexplained Income under Section 69A of the Act) (Rs.) 1. 13114 of 2023 2017-2018 30.06.2022 31.12.2023 32,10,000 + 24,58,85,213 = 24,90,95,213 2. 13117 of 2023 2018-2019 30.06.2022 31.03.2023 1,97,56,360 + 1,03,81,95,500 = 1,05,79,51,860 3. 13119 of 2023 2019-2020 30.06.2022 31.03.2023 2,31,11,590 + 12,38,78,295 = 14,69, 89, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to W.P. No: 12021 of AY 21-22, notice u/s 143(2) was issued to the Petitioner. 11.03.2023 Petitioner filed their Return of Income for the above notice. (NA to WP No: 12021 of AY 21-22) 13.03.2023 Notice u/s 143(2) was issued to the Petitioner to furnish details and documentary evidence with respect to the transactions made with M/s Mohanlal Jewellers (P)Ltd. (NA to W.P. No: 12021 of AY 21-22) Notice u/s 142(1) was issued to the Petitioner. 17.03.2023 Petitioner sent a letter seeking the following information: Name of the searched person and the date of warrant for such search. Copies of the material seized. Satisfaction record of the Assessing Officer of the searched person and the date of communication of the satisfaction note to the petitioner s assessing officer. Satisfaction note recorded by the petitioner s authority. Date of the seized material handed over by the searched person. 20.03.2023 Petitioner furnished the required details as per the notice issued on 13.03.2023. 22.03.2023 The Respondent in response to the request of the Petitioner provided only the satisfaction note and the seized ledger. 27.03.2023 The Petitioner objected to the satisfaction note for the issuance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e objecting to the inferences made in the sworn statements and the seized material. 09.01.2023 Notice u/s 142(1) was issued seeking details as per the annexure. 12.01.2023 The Petitioner filed their response with the details as requested by the Petitioner. 18.01.2023 A letter was issued to intimate the Petitioner regarding the jurisdiction of the Writ petition was transferred from the First respondent to the Second Respondent. 09.03.2023 A show cause notice was issued by the Second Respondent for W.P. No: 11633, 11636, 11638 of 2023. 19.03.2023 A Show cause notice was issued by the Second Respondent. 20.03.2023 Petitioner filed their response to the show cause notice by raising objections. 21.03.2023 The Second Respondent disposed off the objections raised by the Petitioner. 23.03.2023 Petitioner filed their response to the above communication and reiterated their objections and lack of considerations. 28.03.2023 Second Respondent issued a letter denying the request for cross examination. 29.03.2023 Petitioner filed their response to the above communication. 31.03.2023 The Second Respondent passed the assessment order. RM APPAVU CHETTIYAR 42. The Petitioner RM Appavu Chettiyar, who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 129 of the Act. 25.01.2023 Response was filed by the Petitioner with respect to the notice issued on 24.01.2023. 24.02.2023 Notice u/s 143(2) was issued by the First Respondent. The Petitioner filed his response seeking copies of the sworn statement while filing objections with respect to the materials shared with the Writ Petitioner. 08.03.2023 The First Respondent sent copies of the sworn statement recorded on 04.12.2020 in the hands of Mr. Suresh Khatri to the Petitioner. 29.03.2023 Impugned order was issued u/s 153C of the Act. 44. The timeline relevant to the case of the same petitioner in W.P. No. 14927 of 2023 for the Assessment Year 2020-2021 are as under:- WP. No. 14927 of 2023 DATE EVENT 26.12.2020 The Petitioner filed the Return of Income as nil and processed u/s 143(1) of the Act. 15.02.2022 Notice u/s 153C was issued to the Petitioner. 19.12.2022 In reply to the above notice, the Return of Income was filed which was originally filed u/s 139. 08.02.2022 The satisfaction note of the searched person was prepared by the First Respondent. 11.02.2022 The satisfaction note of the Petitioner was prepared by the First Respondent. 03.03.2022 Notice u/s 142(1) was issued seekin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 3. 14379 of 2023 2018-19 20.03.2022 31.03.2023 2,57,48,79,776 4. 14384 of 2023 2019-20 20.03.2022 31.03.2023 6,31,58,004 5. 14391 of 2023 2020-21 20.03.2022 31.03.2023 3,41,12,350 6. 14387 of 2023 2021-22 20.03.2022 31.03.2023 2,75,38,017 47. The timeline relevant to the case of the petitioner are as follows:- DATE EVENT 30.11.2017 GRT Jewellers had filed their Income Tax Returns for AY 2017-18 30.11.2018 GRT Jewellers filed had their Income Tax Returns for AY 2018-19 30.11.2019 GRT Jewellers filed their Income Tax Returns for AY 2019-20 10.11.2020 Search proceedings under section 132 was conducted in the premises of Ms. Mohanlal Jewellers Pvt. Ltd 31.01.2021 GRT Jewellers filed their Income Tax Returns for AY 2020-21 28.02.2022 GRT Jewellers filed their Income Tax Returns for AY 2021-22 19.03.2022 Satisfaction notes were issued for AY 2017-18 to AY 2022-23 to the Petitioner and Searched Person by the same Assessing Officer. 20.03.2022 Notice was issued u/s 153C for AY 2017-18 to 2021-22 02.05.2022 Income Tax Returns were for AY 2017-18 to 2021-22 in response to notice dated 20.03.2022 27.06.2022 In connection with the returns filed on 02.05.2022, notice was issued u/s 143(2) fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Petitioner stating that the gold was issued by M/s Mohanlal Jewellers (P) Ltd and a reply as to why the same should not be treated as unaccounted purchases were to be given on 29.03.2023. 29.03.2023 The Petitioner filed their preliminary reply. 30.03.2023 Notice u/s 143(2) of the Act was issued to the Petitioner, 31.03.2023 The Impugned order was passed by the Respondent. G RAJENDRAN 50. The Petitioner G. Rajendran, being a proprietor of GRT Jewellers (India) Pvt Ltd has challenged the following assessment order all dated 31.03.2023 in the following Writ Petitions:- S. No. W.P. No. AYs. Date of notice u/s 153C. Date of the Assessment orders. Assessed income u/s 143(3) r/w Section 153C (Taxable Income as per ROI + Unexplained Income under Section 69A of the Act) (Rs.) 1. 12688 of 2023 2019- 2020 22.03.2023 31.03.2023 29,96,79,490 + 1,00,66,293 = 27,97,45,783 2. 12686 of 2023 2020-2021 22.03.2023 31.03.2023 17,11,98,510 + 1,11,32,593 = 18,23,31,103 3. 12691 of 2023 2021-2022 22.03.2022 31.03.2023 17,48,54,970 + 69,43,440 = 18,17,98,410 51. The timeline relevant to the case of the petitioner are as follows:- DATE EVENT 22.03.2023 Notice u/s 153C of the Act was issued to the Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .03.2023. 16.03.2023 The Petitioner sought 2 weeks adjournment for submitting the details. 17.03.2023 The Respondent issued a letter to furnish the details on or before 22.03.2023. 22.03.2023 The Petitioner communicated the delay in furnishing the details to the Respondent and also sought for cross examination of the sworn statements of the parties relied upon. 23.03.2023 A Show cause notice was issued by the Respondent to furnish the details on or before 27.03.2023. 27.03.2023 The Petitioner submitted a stock reconciliation statement between the Petitioner and the JPACK for the FY 2016-17 to 2020-21. 31.03.2023 The Impugned order was passed. MUTHUSWAMY GOUNDER PALLANIAPPAN 54. The Petitioner Muthuswamy Gounder Pallaniappan, proprietor of a jewellery shop has challenged the following assessment order all dated 31.03.2023 in the following Writ Petitions:- S. No. W.P. No. AYs. Date of notice u/s 153C. Date of the Assessment orders. Assessed income u/s 143(3) r/w Section 153C (Taxable Income as per ROI + Unexplained Income under Section 69A of the Act) (Rs.) 1. 13489 of 2023 2017-2018 15.02.2022 29.03.2023 1,05,52,120 + 59,32,436 = 1,64,84,556 2. 13494 of 2023 2018-2019 15.02.2022 29. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectro-magnetic storage device. It is submitted that their books of accounts is within ambit of Section 2(12A) of the Income Tax Act, 1961. It is submitted that books or books of accounts will not include ledgers kept in electronic or digital forms in a software application. It is submitted that the software and the pen drive seized does not satisfy the definition of Books of Accounts under the definition of Section 2(12A) of the Income Tax Act, 1961. Therefore, the initiation of proceedings u/s 153C and the impugned order passed are invalid. That apart, it is submitted that satisfaction cannot be recorded based on information gathered or seized and therefore the assessment proceedings under Section 153C was wrongly initiated. 57. The learned counsel for the Petitioner relied on the extracts from the Explanatory notes to the Finance Act, 2022 to state that clause (12A) of section 2 of the Act was amended to provide that the definition of books or books of accounts would include books or books of account kept in electronic or in digital form or as print outs of data stored in such electronic or in digital form. 58. Thus, it is submitted that the data stored in Pen drive/ Hard disc o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Act, 1961 and the rules made thereunder and the case laws submitted in support of the writ petitions and against the writ petitions. 66. Muthuswamy Gounder Pallaniappan, the petitioner in W.P.Nos.13489, 13494, 13500 13504 of 2023 has raised certain other ground in addition to the grounds raised by each of the petitioner on the question of limitation i.e both in issuing notices under Section 153C, preparation of the satisfaction note of the searched person and in passing the impugned Assessment Order under Section 153C read with Section 143(3) of the Income Tax Act, 1961. 67. The learned counsel for the petitioner submits that the definition of Document in Section 3 which is an interpretation clause in the Indian Evidence Act, 1872 is slightly different from the definition of Document in Section 2 of the Income Tax Act, 1961 and Information Technology Act, 2000. 68. The definition of the document in these three enactments are reproduced below:- Section 2(22AA) of the Income Tax Act, 1961 document includes an electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) Section 2(r) of the Information Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n contained in the electronic record reproduces or is derived from such information fed into the computer in the ordinary course of the said activities. (3) Where over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly performed by computers, whether a) by a combination of computers operating over that period; b) by different computers operating in succession over that period; or c) by different combinations of computers operating in succession over that period; or d) in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers, all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single computer; and references in this section to a computer shall be construed accordingly. (4) In any proceedings where it is desired to give a statement in evidence by virtue of this section, a certificate doing any of the following things, that is to say, a) identifying the electronic recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us Tax Law or Appellate Authority and Tribunal under them. 72. Section 1 of the Indian Evidence Act, 1872 in Chapter 1 deals with Short Title, Extent and Commencement of the Act. It clearly delineates applicability of the Act which reads as under:- 1. Short title, extent and commencement:- This Act may be called The Indian Evidence Act, 1872. It extends to the whole of India [***] and applies to all judicial proceedings in or before any Court, including Courts-martial, [other than Courts-martial convened under the Army Act (44 45 Vict., c. 58)] [the Naval Discipline Act [29 30 Vict., 109]; or 6[ *** ] the Indian Navy (Discipline) Act, 1934 (34 of 1934),] [or the Air Force Act (7 Geo. 5, c. 51)] but not to affidavits presented to any Court or officer, nor to proceedings before an arbitrator; and it shall come into force on the first day of September, 1872. 73. These provisions are relevant only for civil and criminal proceedings before the court of law. As far as Assessment proceedings are concerned, the Assessing Officers are not governed by the strict rules of the Indian Evidence Act, 1872. 74. Therefore, the decision of the Hon ble Supreme Court in the case of Sunder Vs. State, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account for the purpose of section 2(12A) of the IT Act, 1961. 79. The amendment to the definition of Books and Books of Accounts to clause (12A) to Section 2 of the Income Tax Act, 1961 by The Finance Act, 2022 w.e.f 01.04.2022 by substituting the words in written form or as print-outs of data stored with in written form or in electronic form or in form or in digitial form or as print-outs of data stored in such electronic form or in digital form was intended to merely align the definition with the current practice on account of the advancement of technology and its widespread utility in daily conduct of business for maintaining books of accounts. Today books of accounts are also maintained in electronic form by a significant section of the assessees in the current age as is evident from explanatory notes to the provisions of the Finance Act, 2022 in Books and Books of Accounts to clause (12A) to Section 2 of the Income Tax Act, 1961. 80. The Amendment to the definition of books and books of accounts in clause (12A) to Section 2 of the IT Act, 1961 is clarificatory and therefore, retrospective. 81. The expression print-outs of data stored would include pdf copies of the print-o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4379 of 2023 2018-2019 20.03.2022 14384 of 2023 2019-2020 20.03.2022 14391 of 2023 2020-2021 20.03.2022 14387 of 2023 2021-2022 20.03.2022 G. Rajendran 12688 of 2023 2019- 2020 22.03.2023 Details not available 12686 of 2023 2020-2021 22.03.2023 12691 of 2023 2021-2022 22.03.2023 GR Anantha Padmanaban 13432 of 2023 2017-2018 22.03.2023 Details not available 13436 of 2023 2018-2019 22.03.2023 13438 of 2023 2019-2020 22.03.2023 M/s KLP Projects Private Limited 13771 of 2023 2019-2020 30.06.2022 30.06.2022 30.06.2022 13775 of 2023 2020-2021 30.06.2022 13781 of 2023 2021-2022 - Maneesh Parmar 13775 of 2023 2020-2021 30.06.2022 30.06.2022 30.06.2022 13117 of 2023 2018-2019 30.06.2022 13119 of 2023 2019-2020 30.06.2022 13125 of 2023 2020-2021 30.06.2022 13129 of 2023 2021-2022 - Sunil Khetpalia 16431 of 2023 2019-2020 30.06.2022 30.06.2022 30.06.2022 12018 of 2023 2020-2021 30.06.2022 12021 of 2023 2021-2022 - Original Kerala Jewellers 13602 of 2023 2017-2018 09.01.2023 Details not available 09.01.2023 13609 of 2023 2018-2019 09.01.2023 13616 of 2023 2019-2020 09.01.2023 13619 of 2023 2020-2021 09.01.2023 13625 of 2023 2021-2022 09.01.2023 86. In Principal Commissioner of Income-tax, Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act, 1961. The Board concluded that Section 153C of the Income Tax Act 1961 was similar to and pari materia to Section 158BD of the Income Tax Act, 1961. 89. Therefore, the time limit for completing Assessment proceedings and passing the Assessment order will be one year from the date on which the documents were handed over or deemed to have been handed over to the Assessing Officer of the other person such as these petitioners, i.e. 31.03.2024. Therefore, the Writ Petition challenging the Assessment Orders passed under Section 153C read with Section 143(3) of the IT Act, 1961 are liable to be dismissed. 90. The above periods are relevant only for preparation and issuance of the satisfaction note under Section 153C of the Income Tax Act, 1961. They are not relevant for the purposes of computation of limitation for completing the assessment under Section 153C read with Section 143(3), Income Tax Act, 1961. 91. In Super Malls (P) Ltd v CIT, (2020) 4 SCC 581, the Hon ble Supreme Court held as under:- ..In case, where the Assessing Officer of the searched person and the other person is the same, there can be one satisfaction note prepared by the Assessing Officer, as he himself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviso to section 153B(1) of the Income Tax Act, 1961, the period of limitation for completing the assessment or re-assessment in case of the other person is the later of the three dates, namely :- i. twelve months from the end of the financial year in which the last of the authorisations for search under Section 132 was made; or ii. twelve months from the end of the financial year in which the last of the authorisations for requisition under Section 132-A was executed; or iii. twelve months from the end of the financial year in which books of account or documents or assets seized or requisitioned were handed over under Section 153-C to the Assessing Officer having jurisdiction over such other person, whichever is later. 101. It is only during the course of the assessment proceedings, of the searched person the Assessing Officer of the searched person will be in a position to establish the transaction which provides a link between the other person with the searched person with their former PAN. It is only thereafter, the satisfaction note(s) can be prepared to persuade the Assessing Officer of the other person to initiate appropriate proceedings under Section 153C of the IT Act, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessing officer for completing the assessment under section 153A of the Income Tax Act, 1961, the limitation for completing the assessment in the case of other person would start running under 3rd proviso to section 153B (1) of the Income Tax Act, 1961. 108. Therefore, even if, the assessing officer of the searched person and the other person were one and the same, the only requirement is that a single satisfaction note in the capacity as the assessing officer of the searched person is sufficient. 109. Therefore, there is no merits in the arguments advanced on behalf of the respective petitioners that the assessment orders ought to have been passed on or before 31.03.2022. The submissions of the learned counsel for the respective petitioners are fallacious and are liable to be rejected. SECTION 143(3):- 110. As far as the impugned orders passed under Section 143(3) of the Income Tax Act, 1961 are concerned, they are regular assessment proceedings which have commenced after the issuance of Section 153C notice to the respective petitioners. W.P. NO PETITIONER ASSESSMENT YEAR DATE OF NOTICE ISSUED U/S 143(2) OF THE INCOME TAX ACT, 1961 13114 of 2023 Maneesh Parmar 2017-2018 09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 are without merits. Therefore, these Writ Petitions challenging the Assessment Orders passed under Section 143(3) of the Income Tax Act, 1961 are also liable to be dismissed. 113. In so far as unexplained income of the Mr. Maneesh Parmar and Mr. Sunil Khetpalia, is concerned there is an overlap as detailed above for W.P. 13119, 13125, 13129, 16431, 12018, 12021 of 2023. 114. From reading the tables, the amount of unexplained income for the Assessment year 2019-2020, 2020-2021 and 2021-2022 has been added to the accounts of both the directors of M/s.KLP Projects Private Limtied, i.e., Manish Parmar and Mr. Sunil Khetpalia. 115. Therefore, the Impugned Orders in W.P. 13119, 13125, 13129, 16431, 12018, 12021 of 2023 are liable to be quashed and cases are remanded back to the respondents to redo the exercise by adding the unexplained income under Section 69A of the Income Tax Act, 1961 to the income of the Petitioner. 116. Therefore, to the extent of the impugned orders dated 31.03.2023, in the case of the respective assessment order under Section 153C read with Section 143(3) of the Income Tax Act, 1961 of the above two Petitioner are liable to be quashed and is remitted ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
