9911796707
TMI Blog2025 (3) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble jurisdictional high court as reported in [2015 (8) TMI 982 - DELHI HIGH COURT] the assessment order passed u/s 143(3) dt. 28.12.22 is hereby quashed. Appeal of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... re being any corroborative evidence against the assessee with the AO that the assessee has made such investment and received such interest (iii) That the abovesaid addition has been confirmed by arbitrarily rejecting the detailed submissions and explanations brought on record by the assessee in this regard. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the abovesaid addition despite the fact that the same has been made by the AO on the basis of image extracted from whatsapp chats seized during the course of search on third persons, are not related to the assessee and thus having no evidentiary value. 10. The appellant craves leave to add, amend or alter any of the grounds of appeal." 3. Brief facts of the case:- The assessee is an individual and filed his return of income on 26-11-2021 declaring total income of Rs. 3,91,97,160/-. A search and seizure action was carried out on 06.01.2021 in the cases of Praveen Jain of Hans Group. As per AO during the course of search certain transactions of the assessee with Shri Praveen Jain were found in the WhatsApp chat in the mobile of Shri Praveen Jain. As per these chat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therein it is noticed that the seized digital data and information contained therein found during the course of search in the case of Shri Sanjeev Gupta. Further, on the basis of above mentioned Digital data and information contained therein, it is notice that Sanjeev Gupta has made unexplained cash transaction of ₹5,25,00,000 with Shri Gulshan Nagpal C/o. MS Gulshan Homes Private Ltd and received undisclosed interest income on aforementioned cash transactions which has bearing upon the determination of income of Shri Sanjeev Gupta. Therefore, I am satisfied that the case of Shri Sanjeev Gupta is fit for initiation of proceedings under section 153C of the Act." 6. Ld. AR further submitted that the notice u/s 143(2) for the impugned year was issued on 30.06.2022, and the assessment has completed us/ 143(3) of the Act. According to the ld. AR in terms of the provisions of section 153C of the Act, block period of six assessment years has to be reckoned from the date of receipt of the documents by the AO of the assessee from the AO of the person searched. In this regard, he placed reliance on the relied upon the decision of the Co-ordinate Bench of the Tribunal in following cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r similar circumstances, the coordinate bench of Tribunal in the case of Akansha Gupta (supra) has held the order passed u/s 143(3) as bad in law. The relevant observations of the tribunal are as under: "8.1. On perusal of the satisfaction note, it is seen that the same was recorded on 30.06.2022 by the AO after giving a finding that the clone data of Pravin Kumar Jain's Mobile marked as Annexure-5 belongs to the assessee, which has bearing on the determination of total income of the assessee for the relevant assessment years referred to in sub section-1 of section 153A of the Act and it was a fit case for initiating proceedings in the case of the assessee for AY 2015-16 to 2020-21 u/s 153C of the Act and for AY 2021-22 u/s 143(2) of the Act. Thereafter, he issued a notice u/s 143(2) on 30.06.2022 for AY 2021-22. On similar facts, the Coordinate Bench of the Tribunal in the case of Jasjit Singh(supra) referred to the decision in the case of Co-ordinate Bench in the case of V.K. Fiscal Services Pvt. Ltd. ITA Nos.5460 to 5465/Del/2012, wherein, it was held that the date of receiving of the seized documents would become the date of search and six years period would be reckoned from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total income in respect of each assessment year falling with insuch six assessment years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this [subsection) pending on the date of initiation of the search u/s 132 or making of requisition u/s 132A, as the case may be, shall abate." 21. From the above, it is evident that as per clause (b) of subsection (1) of section 153A and second proviso, the AO can be issue notice for assessment or reassessment of total six assessment years immediately preceding the assessment year relevant to previous year in which search is conducted. As per proviso to section 153C, the date of search is to be substituted by the date of receiving the books of account or documents or assets seized by the AO having jurisdiction over such other person. Ld. DR has stated that since the AO of the person searched and the AO of such other person was the same, no handing over or taking over of the document was required. That section 153C(1) and its proviso have to be read together in a harmonious manner. While interpreting section 153C, we have already held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal do not survive, and, therefore, do not require any adjudication." 16. We thus, find that the issue raised in the additional ground has-been answered in favour of the assessee, by the Coordinate Delhi Bench of the Tribunal in the case of DSL Properties (supra). 17. So far as decision of Hon'ble Delhi High Court in the case of SSP Aviation Ltd. vs. DCIT (supra) relied upon by the Id. CIT(DR) is concerned, we find that it is not helpful to the revenue as in that case also in para no. 14 of the judgment it has been held as under: 14. "Now there can be a situation when during the search conducted on one person u/s 132, some documents or valuable assets or books of account belonging to some other person, in whose case the search is not conducted, may be found. In such case, the AO has to first be satisfied u/s 153C, which provides for the assessment of income of any other person, i.e., any other person who is not covered by the search, that the books of account or other valuable article or document belongs to the other person (person other than the one searched). He shall hand over the valuable article or books of account or document to the AO having jurisdiction over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the case of the assessee will be AY 2023-24 and the six assessment years immediately preceding the assessment year relevant for the previous year in which search was conducted for initiating proceeding u/s 153C of the Act will be AY 2018-19 to 2022-23. Therefore, respectfully following the decision of the cited case, it is held that in the present case, the assessment for AY 2021-22 should have been carried out by issuing notice u/s 153C of the Act and not u/s 143(2) of the Act as done by the AO in this case. No other contrary facts or decision was brought on record by the Ld. DR Therefore, it is held that the assessment order dated 29.12.2022 passed u/s 143(3) of the Act by the issuance of notice u/s 143(2) of the Act dated 30.06.2022 is bad in law and hence the notice u/s 143(2) of the Act, dated 30.06.2022 and the consequent assessment order dated 29.12.2022 passed u/s 143(3) of the Act are hereby quashed. The additional grounds filed by the assessee are allowed." 10. Since the facts of the case of the assessee are identical to the aforesaid case of Aakansha Gupta, as in the case of the assessee also the satisfaction note for initiating the proceedings u/s 153C were reco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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