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TMI Blog2015 (11) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... of six appeals and six cross objections relating to six assessment years (AYs), being AYs 2003-04 to 2008-09. The aforesaid appeals before the Tribunal, were filed by the Revenue (being ITA Nos. 1081-1086/Del/2012) impugning a common order of the Commissioner Income Tax (Appeals) dated 5th December, 2011 partly allowing appeals of the Assessee in respect of the assessment orders (all dated 31st December, 2010) passed by the Assessing Officer (hereafter 'AO') under Section 153C read with Section 143(2) of the Act. The Revenue was aggrieved inasmuch as the CIT(A) had set aside the addition to the total income of the Assessee made by the AO under Section 69C of the Act in respect of the purchases as declared by the Assessee as well as set asid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , proceedings under Section 153C of the Act could not be initiated. In addition, he submitted that the proceedings in respect of AY 2003-04 and AY 2004-05 were beyond the period of six years from the end of financial year preceding the year in which satisfaction under Section 153C of the Act was recorded and, thus, outside the scope of Section 153C of the Act. He submitted that the present case also involved the question as to jurisdiction of the AO to make assessments under Section 153C of the Act; but, as the questions of law were framed prior to issuance of notice in these appeals, the Assessee had no opportunity to suggest the same. 4. Mr N.P. Sahni, learned Senior Standing Counsel for the Revenue, did not dispute that the substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act were also issued for the purpose of assessing the income of the Assessee with respect to AY 2003- 04. 6.3 The Assessee sent a letter dated 29th November, 2010 to the AO requesting the AO to provide copies of the seized material. The Assessee also contested the initiation of proceedings under Section 153C of the Act in addition to contending that the assessments were time barred. In reply to the said letter, the ACIT vide a letter dated 3rd December, 2010 observed that the Assessee interpreted the first proviso of Section 153C(1) wrongly. 6.4 The AO subsequently passed assessment orders dated 31st December, 2010, under Section 143(3)/153C of the Act. During the assessment proceedings, it was observed that the Assessee had purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a part of the cheque book - contained an entries pertaining to a cheques issued in 2008. 6.7 The CIT(A), however, allowed the appeal of the Assessee with regard to the disallowance of purchases under Section 69C of the Act and observed that Section 69C of the Act applies only when there is some expenditure and the Assessee is unable to explain the source from which such expenditure has been incurred. The CIT(A) held that the Assessee had accounted for all the purchases made in cash in its books of accounts and, thus, the source of the expenditure could not be stated to be unexplained. The CIT(A) also deleted the addition made by the AO on account of 100% disallowance of expenditure. 6.8 Being aggrieved by the common order dated 5th Dece ..... X X X X Extracts X X X X X X X X Extracts X X X X
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