9911796707
TMI Blog2012 (8) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... rched assessee's assessment was taken up under Section 153A, based on the information and materials gathered during search that Assessing Officer noticed that the part of the evidence collected and materials received during search of that assessee belong to the appellant, and therefore the evidence and materials so collected during search of the assessee at Mangalore were transferred to the Assessing Officer before whom the appellant/assessee is regularly assessed at Kozhikkode. Based on materials received from the Assessing Officer from Mangalore, the appellant/assessee's assessments were taken up under Section 153C read with Section 153A after issuing notice and the said assessments were completed through separate orders for each of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st challenge is against the assessment for the assessment year 2009-10 made under Section 144 read with Sections 153C and 153A of the Act. According to the appellant, assessments permissible under Section 153C read with Section 153A are only for six assessment years in terms of Section 153A(1)(b) of the Act. Admittedly, search was on 17/03/2009 and therefore the six assessments permissible under the above Sections are for the assessment years 2003- 04 to 2008-09. The appellant has contested the validity of all the assessments. We first proceed to consider the challenge against the validity of the best judgment assessment completed for the assessment year 2009-10. The specific grievance of the appellant is that assessment for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one in this case. However, since the materials gathered during search of another assessee was the basis for completion of assessments of the appellant for the six preceding assessment years under Section 153C read with Section 153A, regular assessment for 2009-10 was completed immediately thereafter. The Assessing Officer by mistake has quoted all those Sections namely Sections 153C and 153A of the Act in the best judgment assessment also wherein it is also stated that the said assessment is made under Section 144 of the Act. We do not think the validity of a best judgment assessment completed under Section 144 is any way affected merely because Sections 153C and 153A, based on which preceding year's assessments were completed, are also quo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer of the appellant to make assessments on the appellant under Section 153C read with Section 153A of the Act. While learned counsel for the appellant has relied on the decision of the Supreme Court in Manish Maheshwari v. Asst. Commissioner of Income Tax and Another, reported in 289 ITR 341, learned Standing Counsel for the Revenue has relied on the Division Bench decision of this Court in Commissioner of Income Tax v. Panchajanyam Management Agencies and Services, reported in 333 ITR 281 (Ker). We do not think there is any need to go to both these decisions because even though Section 153C is analogous to the previous provisions of Section 153BD, there is complete deviation in the new provision in as much as while Section 158BD provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the assessee whose books of accounts or materials are recovered in the course of search of any other assessee, is a regular assessee before another Officer, and if so, to transfer the file to such other Officer for his consideration and for passing orders, whether assessment or penalty or such other order permissible under the Act by that Officer. Admittedly, in this case, the Assessing Officer, who conducted the search and who obtained materials and evidence about the income of the Appellant rightly transferred the files to the Assessing Officer of the appellant at Kozhikode, who has jurisdiction to assess him, and it is only on receipt of such files and materials from the Assessing Officer from Mangalore, the appellant's assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence or materials belonging to another assessee is obtained for transferring the file to the Assessing Officer before whom such other assessee is to be assessed. Even though transfer as contemplated under Section 153C has to be made by the Officer who conducted the search and who recovered books of accounts, materials or articles in the course of search of an assessee other than searched assessee, still it is open to such assessee to establish before his Assessing Officer that the opinion of the Assessing Officer transferring the materials or evidence or books of accounts or goods seized is wrong and that those do not belong to him. In other words, the transfer of recovered books of accounts, evidence or materials is only a procedural form ..... X X X X Extracts X X X X X X X X Extracts X X X X
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