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TMI Blog2024 (7) TMI 1576X X X X Extracts X X X X X X X X Extracts X X X X ..... Firstly taking up the appeal filed by the assessee for the Assessment Year 2009-10 i.e. ITA No.296/Ahd/2018 and hence grounds raised in this appeal are reproduced as under:- "1. The Ld. CIT(A) has erred in law and on facts in holding that the AO was justified in making the addition of Rs.8,14,200/- and in upholding the said addition. 2. The Ld. CIT(A) has further erred in law and on facts in not dealing with the specific contentions raised before her and in recording incorrect finding that the case law cited in support of each contention was distinguished on facts. 3. On the facts and in the circumstances of the case and in law the learned CIT(A) ought not to have upheld the addition of Rs.8,14,200/- and ought to have deleted the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 148 of the Act was issued on 31.03.2016 which was served upon the assessee on 31.03.2016. The assessee did not file any return of income in response to notice under Section 148 of the Act. Thereafter, notice under Section 142(1) of the Act was issued on 06.06.2016 and served upon the assessee thereby the assessee was required to furnish the details as per notice issued under Section 148 of the Act. The assessee did not attend the proceedings and not filed any details. The Assessing Officer observed that an intimation in respect of proceedings under Section 132A was issued on 09.03.2015 in the case of Narayan Sai and Asaram Bapu has been received from DDIT (Inv.) and the Promissory Note was found towards the assessee Ghanshyam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish any corroborative evidence in support of his contention and, therefore, made addition of Rs.8,14,200/- on account of expenses incurred out of undisclosed source. 5. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 6. The assessee has taken additional ground in respect of the specific bar provided under Section 153A/153C of the Act and hence, the Ld. AR submitted that the proceedings initiated under Section 147 of the Act are not valid in law. The Ld. AR further submitted that the assessment made in pursuance of the invalid proceedings under Section 147 of the Act and illegal notice under Section 148 of the Act is void ab initio and, therefore, liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53 (Chandigarh Tribunal), ITO vs. Vikram Sujitkumar Bhatia, 453 ITR 417 (SC). 7. The Ld. DR submitted that search in the case of Narayan Sai was carried out on 09.03.2015 i.e. before Section 153C was amended (w.e.f. 01.06.2015). Section 153 was amended before the amendment of Section 153C it was possible to invoke Section 153C only if material found belong to third person. In the case of Narayan Sai, documents found belonged to Narain Sai only and not by the assessee. Therefore, it was not possible to invoke Section 153C of the Act in the case of the assessee. Documents found contained some information about assessee which was intimated to the Assessing Officer of the assessee and accordingly assessment was reopened by issuing notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of ITO vs. Vikram Sujitkumar Bhatia (supra), it appears that the Assessment Order was passed on 30.11.2016 and the appeal of the assessee was decided by the CIT(A) vide order dated 18.12.2017 but the decision of Hon'ble Supreme Court is that of 06.04.2023. Assuming that Section 153C of the Act should have been invoked in the present assessee's case, the Assessing Officer of the assessee received requisition report and on the basis of that the Assessing Officer reopened the case of the assessee as per Section 147 of the Act which was applicable when the notice under Section 148 was issued on 31.03.2016. The contention of the Ld. AR that provisions of Section 153C of the Act are applicable in the assessee's case being other person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l found by the Assessing Officer in case of search operation of Narayan Sai and Asaram Bapu cannot be stated to be that of the assessee and in fact the document does not have value as incriminating material in assessee's case. These aspects were totally ignored by the Assessing Officer on merit also. 10. In the result, appeal of the assessee being ITA No.296/Ahd/2018 for Assessment Year 2009-10 is allowed. 11. As regards to ITA No.1717/Ahd/2019 for Assessment Year 2011-12, the same is identical as stated by the Ld. AR and Ld. DR. Therefore, the observations made in Assessment Year 2009-10 in ITA No.296/Ahd/2018 is applicable for Assessment Year 2011-12 as well. Thus, ITA No.1717/Ahd/2019 for Assessment Year 2011-12 is allowed. 12. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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