TMI Blog2015 (6) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... ed:- 9-10-2014 - SHRI R.S. SYAL, AND SHRI GEORGE GEORGE K , JJ For the Appellant : Shri Suresh Anantharaman, CA For the Respondent : Smt. A. Misra, CIT, DR ORDER PER R.S. SYAL, AM: This appeal by the Revenue and cross objection by the assessee arise out of the order passed by the CIT(A) on 30.04.2010 in relation to the assessment year 2002-03. 2. The only issue raised by the Revenue through five grounds is against the quashing of the initiation of assessment made by the Assessing Officer under section 153C of the Income-tax Act, 1961 (hereinafter also called the Act ). Briefly stated, the facts of the case are that a search and seizure operation was conducted in M/s Flex group of companies on 23.02.2006. During the course of this search, certain documents/books of account belonging to the assessee company were seized from the premises of Shri Manvinder Singh (Party A-10) and M/s Flex Industries Ltd., now Uflex Ltd. (Party B-2), in whose names/cases warrants of authorization had been issued. These documents were seized vide Annexures A-1, A-9 and A-10. The documents belonging to the assessee seized from various premises of the above referred tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and, as such, the proceedings initiated 153C of the Act . The reason for such decision is that no addition was made by the AO on the basis of the documents seized which were claimed to be belonging to the assessee. We notice that there is no dispute on the fact that a search was conducted on certain group entities of Flex Industries. It has not been denied that the assessee was not the person searched. There is further no dispute on the fact that the documents claimed to be belonging to the assessee as per Annexures A-1, A-9 and A-10 were found during the course of search on Shri Manvinder Singh and M/s Flex Industries Ltd. These documents have been placed on record by the ld. DR. It can be seen from the Departmental paper book that these documents find place on pages 1-36. Pages 26-30 are the copies of assessee s Bank book which were found from the premises of the persons searched. When we peruse these documents, it can be easily noticed that the Bank books bear the name of the assessee and relate to financial years starting from 1.4.2004. Pages 31-35 is a print-out of the Trial balance of the assessee as on 31.3.2004 which was again found from the premises of the person searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 153C is that where all the necessary ingredients of this sub-section are satisfied, the matter of making assessment or re-assessment goes back to section 153A. Since the assessment or reassessment of such other person has to be done in accordance with the provisions of section 153A, let us examine the prescription of the relevant parts of section 153A(1), which is as under :- Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall- (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the person searched are found to be belonging to the other person, then, the assessment or reassessment of such other person is to be necessarily completed in terms of section 153A, which in no uncertain terms refers to six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made. Further, the use of the word shall in section 153A immediately before clause (a) has left nothing to doubt that the assessment is required to be made for all the six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made. As the legislature has not made the making of such assessment or reassessment for all the six assessment years subject to any condition of finding of any incriminating material or otherwise, we are unable to accept such contention of the ld. AR which, if accepted, would lead to legislating, a proposition which is obviously not tenable. 8. We can reject the contention of the assessee from another angle as well. It is relevant to note that the expression books of account or documents employed in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. 11. On going through the plain language of sub-section (2) of section 153C, it becomes manifest that this deals with the assessment for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A. This subsection simply provides that where books of account or documents, etc., have been received by the AO having jurisdiction over such other person after the due date for furnishing the return of income for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
