9911796707
TMI Blog2024 (5) TMI 1468X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue a Writ of Certiorari, or any other appropriate Writ, order or direction of like nature, to quash the Impugned Notices dated 24.04.2023 issued under Section 153C of the Act for AY 2014-15 to 2020-21 (Annexure - P1 at Pg. Nos. 44-50) and the Impugned Order dated 22.11.2023 (Annexure - P2 at Pg. Nos. 51-134) and the consequential proceedings being completely illegal and without jurisdiction; b) For such further and other reliefs, including costs of this Petition, as this Hon'ble Court may deem fit and proper in the nature and circumstances of the case. 2. Undisputedly, and as would be evident from a reading of the Satisfaction Note pertaining to the non-searched entity, namely the petitioner, the material which is alluded to pertains t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent would be triggered by the formation of that opinion rather than the other way around. This, in light of the discernibly distinguishable statutory regime underlying Sections 153A and 153C as explained above. While in the case of the former, a notice would inevitably be issued the moment a search is undertaken or documents requisitioned, whereas in the case of the latter, the proceedings would be liable to be commenced only upon the AO having formed the opinion that the material gathered is likely to inculpate the assessee. While in the case of a Section 153A assessment, the issue of whether additions are liable to be made based upon the material recovered is an aspect which would merit consideration in the course of the assessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in that respect being reached. 67. On an overall consideration of the aforesaid, we come to the firm conclusion that the "incriminating material" which is spoken of would have to be identified with respect to the AY to which it relates or may be likely to impact before the initiation of proceedings under Section 153C of the Act. A material, document or asset recovered in the course of a search or on the basis of a requisition made would justify abatement of only those pending assessments or reopening of such concluded assessments to which alone it relates or is likely to have a bearing on the estimation of income. The mere existence of a power to assess or reassess the six AYs' immediately preceding the AY corresponding to the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd observations as they appear in the satisfaction note as drawn: "5.4 In respect of M/s DNC, the following investigations revealed that it was a bogus entity: * Sh. Paras Mal Lodha (who was searched twice by the Directorate of Income Tax Investigation, Delhi) was found to be actively involved in arranging accommodation entries and hawala transactions. It was further learnt during the course of search on HP/MB Group a part of its project was awarded to DNC. * The scanned copies of the GST Registration Certificate and a cancelled cheque of DNC were also found in the Whatsapp messages of Sh. Paras Mal Lodha during the course of search on him on 07.04.2019. The presence of such messages in respect of DNC with a Hawala/Entry Operator who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide any genuine supply of work/services and funds were merely siphoned off. * During the search, statement of Mr.Dirishala Naresh Chowdary, Managing Director of DNC, was recorded on oath and was asked to provide the details of the work being carried out by DNC for various projects along with details regarding the selection of the sub-contractor parties for these projects and nature of work carried out by them. No satisfactory answer could be provided. (i) Mr. Dirishala Naresh Chowdary was not even aware of the sub-contractors and how the selection of these sub-contractors was done for carrying out this project 'worth over a hundred crore, which is not realistic. (ii) No proofs of any work being carried out by the sub-contractors w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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