TMI Blog2016 (1) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... the scope of section 153C of the Act and being without jurisdiction, liable to be quashed. - Decided in favour of assessee. - ITA No. 1720 & 943/Del/2013 - - - Dated:- 6-1-2016 - SMT. DIVA SINGH, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Sh. Anil Jain, CA For The Respondent : Sh. A.K. Saroha, CIT(DR). ORDER PER O.P. KANT, A.M.: The present appeals by the assessee are directed against different orders, dated 07.01.2013 11.12.2012 of learned Commissioner of Income Tax (Appeals)-III, New Delhi, passed for the assessment years 2003-04 and 2002-03 respectively. Since grounds of appeal raised in the both the appeals are common, except difference in amount, they are being disposed of by a consolidated order. The assessee raised the following grounds of appeal in ITA No. 1720/Del/2013 for AY 2003-04: i. That on the facts and circumstances of the case and the provisions of law the ld. CIT Appeal has failed to appreciate that initiation of proceeding u/s 153C and the assessment order passed by the ld. AO u/s 143(3)/153C is illegal, bad in law and wrong on facts. ii. That on the facts and circumstances of the case and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch and seizure operation under Section 132 of the Income-tax Act, 1961 (for short the Act ) was carried out in the case of M/s Wing Pharmaceuticals and Associated cases on 14.02.2008. The group cases of M/s Wings Pharmaceuticals Pvt. Ltd. were centralized with the ACIT, Central Circle-2, New Delhi. The case of the assessee was also centralized with the ACIT, Central, Circle-2, New Delhi i.e. the Assessing Officer. In the case of assessee, notice under Section 153A of the Act was issued by the Assessing Officer on 31.01.2009. However, once it was noticed that the assessee was not covered under the search action, the notice issued under Section 153A of the Act was withdrawn by the Assessing Officer. Subsequently, it was noticed by the Assessing Officer that certain documents including profit and loss account of the assessee company for the assessment year 2003-04 to 2005-06 were found in the hard disc seized from the premises of the M/s Wings Pharmaceuticals Pvt. Ltd. i.e. the party searched upon. The Assessing Officer of the party searched upon and the assessee, being the same officer, he recorded satisfaction for issuance of notice under Section 153C of the Act on 2nd November, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal High Court dated 30th October, 2015 in the case of CIT Vs. RRJ Securities Ltd., in ITA No. 164/2015, ITA Nos. 175 to 177/2015. He further submitted that in view of the judgment of Hon ble Delhi High Court, the assessment for the year under consideration were outside the scope of Section 153C of the Act and the Assessing Officer had no jurisdiction to make assessment for the year under consideration. The learned Commissioner of Income-tax (Departmental Representative), in respect of the ground No. 2, submitted that the provisions of the section should be so construed as not the defeat the purpose for which same are introduced. He relied on the judgement of Hon ble Supreme Court in the case of Tarulata Shyam reported in 108 ITR 345. 6. We have heard the rival submission on this issue and also perused the judgment dated 30th October, 2015 of the Hon ble jurisdictional High Court in the case of CIT Vs RRJ Securities in ITA No. 164/2015 and ITA No. 175 to 177/2015. For ready reference, the relevant para of the judgment is reproduced as under: 24. As discussed hereinbefore, in terms of proviso to Section 153C of the Act, a reference to the date of the search under the second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssession of the AO of that person only after the AO of the searched person is satisfied that the assets/documents do not belong to the searched person. Thus, the date on which the AO of the person other than the one searched assumes the possession of the seized assets would be the relevant date for applying the provisions of Section 153A of the Act. We, therefore, accept the contention that in any view of the matter, assessment for AY 2003-04 and AY 2004-05 were outside the scope of Section 153C of the Act and the AO had no jurisdiction to make an assessment of the Assessee's income for that year. 7. The fact that satisfaction u/s 153C of the Act in the case was recorded on 2nd November, 2009 is not disputed by both the parties. In judgemnt cited above, the Hon ble High Court has held that when the Assessing Officer of searched person and such other person in whose case proceedings under section 153C are initiated, is same officer, then the date of recording of satisfaction would be construed as the date of handing over of the seized records by the Assessing Officer of searched person to the Assessing Officer of such other person in whose case proceedings under section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
