Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 219 - AT - Income TaxOpening of assessment u/s 153C of the Income tax act – Held that:- Reliance has been placed upon the judgment of the Co-ordinate bench of Tribunal, Bangalore in the case of DCIT vs. United Spirits Ltd., Bangalore [2013 (11) TMI 75 - ITAT BANGALORE] wherein it was held that no material belonging to the assessee was found which authorized the Assessing Officer to initiate the proceedings under sec. 153C of the Act – On reading of s. 153C of the Act, it is crystal clear that 'where the assessing officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs to belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the assessing officer having jurisdiction over such other person and that assessing officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A. In the abovementioned case, no books of account nor any incriminate documents pertaining to the appellant were seized when a search was conducted in the residential premises of Sri Miglani and that no books of account or documents or assets seized or requisitioned were handed over to the assessing officer having jurisdiction over the appellant - Thus, the AO, was not within his realm for initiation of proceedings u/s 153A r.w.s. 153C of the Act in the case of the appellant. Query that UPDA is a society where all the assessees are members. According to the principle of mutuality, why the details prepared by the Secretary of the Society be not construed as belonging to all the members of the society. To this query, it was contended by the learned counsel for the assessee that UPDA is an independent taxable entity. It is not a members club and not a mutual benefit society. It is constituted under a separate Memorandum of Association. The Memorandum of Association does not provide that excess of the income shall be paid or transferred directly or indirectly to the members of the society. It also does not provide that on dissolution of the society, assets of the society shall be distributed among the members of the society. Any thing belong to the society can not be said to be belonged to the members. All these amounts have been taxed in the hands of UPDA also. The assessees have their independent status as a company other than the members of a society. On an analysis of above submission, no any merit in the contention of Learned DR that considering the position of Shri Miglani as Secretary of UPDA. The document should be construed as belonged to assessee. Respectfully following the order of the ITAT, Bangalore, allowed the preliminary grounds raised by the assessee that no documents belonging to the assessee were found and, therefore, no assessment under sec. 153C of the Act can be framed in their cases. Consequently, all the assessment orders are quashed.
|