TMI Blog2017 (1) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 153A and accordingly, the AO is directed to delete the addition. - Decided in favour of assessee - ITA No. 1016/Mum/2014 - - - Dated:- 4-1-2017 - Shri C. N. Prasad, JM And Shri Rajesh Kumar, AM Appellant by : Shri Subramainian Respondent by : Shri Shishir Dhameja ORDER Per Rajesh Kumar, A. M. This is an appeal filed by the assessee challenging the order dated 23.12.2013 passed by the ld.CIT(A)-1, Mumbai for the assessment year 2008-09. 2. The issue raised in the ground No.1 by the assessee is in respect of jurisdiction of AO to make addition while framing assessment under section 143(3) read with section 153A of the Income Tax Act, 1961 which was not raised before the First Appellate Authority and is being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down in National Thermal Power Co Ltd Vs. CIT 229 ITR 383(SC). In view of these facts and legal position we are inclined to admit the legal issue raised by the assessee. 6. Brief facts of the case are that the return of income was filed by the assessee on 12.2.2009 u/s 139(1) declaring a total income of ₹ 1,54,090/-. A search was conducted on 18.2.2010 on the assessee under section 132 of the Act. Thereafter, a notice under section 153A was issued on 29.10.2010 calling upon the assessee to file return of income which was served upon the assessee on 4.11.2010. The assessee complied with the notice by filing return of income along with computation of income on 3.12.2010 declaring total income of ₹ 1,54,090/-. 7. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and required to be deleted. The ld. AR in defence of his arguments relied on the decision of the Hon ble Jurisdictinal High Court in the case of CIT V/s Gurinder Singh Bawa (2016) 386 ITR 483(Bom). 8. The ld. DR on the other hand, relied on the orders of authorities below. 9. We have heard the rival contentions and perused the material on record including the orders of authorities below and case law relied upon by the assessee. We find that the return of income filed by the assessee on 12.2.2009 declaring a total income of ₹ 1,54,090/- and no notice was issued under section 143(2) to the assessee. The period for issuing such notice expired on 30.9.2009 under the provisions of section 143(2) of the Act. A search was cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar year, it could not be subject to proceedings under section 153A of the Act, if no incriminating materials were gathered in the course of the search or during the proceedings under section 153A, which were contrary to and were not disclosed during the regular assessment proceedings Thus, it is clear from the above facts that the assessment in the present year was complete and finalized on the date of search and therefore addition as made by the AO u/s 14A in respect of expenses relating to the exempt income is without jurisdiction u/s 143(3) read with section 153A and accordingly, the AO is directed to delete the addition. 10. The issue raised in ground no.2 is rendered academic in nature in view of our finding on legal issue. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
