9911796707
TMI Blog2025 (1) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of Rs. 2,46,47,879/- solely on the basis of mere conjectures, suspicion and surmises, without having any corroborative/independent evidences. 3. That the Ld. CIT(A) has erred in law and in facts to confirm action of the AO on the basis of loose piece of paper which was seized during the search and seizure operations on third party. 4. That the assessee prays permission to add, delete or amend one or more grounds of appeal." 2. The Ld. Counsel for the assessee further submits that assessee has filed additional legal grounds of appeal with a prayer to admit the additional ground which is in respect of the validity of assessment made u/s 143(3) of the Act. Ld. Counsel for the assessee submits that since the assessee in her additional ground challenges the very validity of assessment made u/s 143(3) as void ab initio the legal ground be admitted and adjudicated upon. Reliance was placed on the decision of the Hon'ble Supreme Court in the case of National Thermal Power Ltd. Vs. CIT (229 ITR 383) and Jute Corporation of India Ltd. Vs. CIT (187 ITR 688). 3. Heard rival contentions. The assessee has raised the following additional ground: "The impugned order of assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. Counsel submitted that it is a settled law that when provisions of proviso to section 153C are applied, then date of search/ year of search, for the purpose of above section, is substituted by date of handing over of the documents by the Assessing Officer of the person searched to the Assessing Officer of the other person (present assessee). These dates i.e. 09.09.2022 or 27.09.2022 are the dates when the satisfaction by the AO as both the AO of the person searched and that of the other person were recorded and therefore, these dates are relevant for determining the date of handing over the document to the AO for determining the year of search as per first proviso to section 153C. It is submitted that based on these facts, the assessment year 2023-24 relevant to FY 2022-23 is the year of search and in view of the provisions of section 153C of the Act having regard to first proviso thereof, the AO was required to complete assessment for six assessments year prior to the year of search i.e. AY 2023-24 u/s 153C for AY 2017-18 to AY 2022- 23. 7. It is further submitted that on the above analogy, the assessment for AY 2021-22 would fall in the block period in view of the first p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.2022 and also the decision of the coordinating bench in the case of Mukul Rani Thakur ITA No. 1483/Del 2024 dated 20.11.2024 which pertains to assessment u/s 143(3) for the same assessment year i.e. 2021-22 and based on the material and search involved in the present case. Copy of the order enclosed. 10. Therefore, Ld. Counsel submits that it is not in dispute in view of facts stated above, that assessment under appeal has been framed under incorrect provision of law i.e. 143(3) instead of the same mandated under law to be completed u/s 153C only. It is submitted that the judicial courts have dealt the issue of assessment completed under incorrect section in favor of assessee in the following decisions: * CIT v. T. Rangroopchand Chordia [2016] 241 Taxman 221 (Madras HC); * Dr. K.M. Mehaboob v. DCIT [2012] 26 taxmann.com 54 (Kerala HC); * Ashok ji Chandu ji Thakur v. PCIT [2021] 130 taxmann.com 130 (Guj. HC) * Shri Om Prakash Jalkhotia v. ACIT ITA Nos.968, 969, 970 & 971 /Del./2021 * Mikado Realtors P. Ltd. ITA no. 50/DEL/2021; * Sanjay Thakur v. The DCIT (Central Circle) In ITA No.3559/DEL/2015 ; * DCIT v Vinod Kumar in ITA no. 2550/DEL/2015; 11. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoke the regular assessment proceedings by issuance of notice u/s 143(2) of the Act. In this backdrop, the assessee contends that in the light of provision of section 153C of the Act, data of search stands substituted by the data of handing the documents by the AO of the person searched to the AO of the other person namely, the present assessee. The date of handing over is 21.06.2021 which falls in previous year 2021-22 relevant to Assessment Year 2022-23 by applying the proviso to section 153C of the Act. The immediate preceding year prior to the year of search i.e. AY 2021-22 in question would fall in block years having regard to proviso to section 153C of the Act. Consequently, it was incumbent upon AO to assess the alleged undisclosed und income pertaining to AY 2021-22 in the hands of the assessee under section 153C of the Act and such assessment of income emanating from search is outside the scope of section 143(3) of the Act. 14. We find substantial force in the plea raised on behalf of the assessee. While search in the instant case was carried on 06.01.2021 i.e. previous year relevant to Assessment Year 2021-22, the documents were handed over in the previous year relev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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