TMI Blog2018 (2) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... income of assessee herein. It goes without saying that substantive action under s.153C is not permissible for an empty cause without corroboration of incriminating material. Thus, it is obvious that Revenue has grossly failed to substantiate legal foundation of action undertaken by invoking s.153C and further failed to controvert any of the aforesaid formidable pleas raised on behalf of the assessee in support of its cross-objection - Decided in favour of assessee. - ITA No (s) 2481-2482/Ahd/2014, CO284-285/Ahd/2014 - - - Dated:- 21-12-2017 - Shri Pradip Kumar Kedia, Accountant Member And Shri Mahavir Prasad, Judicial Member Revenue by : Shri Rajdeep Singh, Sr.DR Assessee by : Shri Anil kshtriya, AR ORDER Per Pradi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee, at the outset, submitted that the return of income relevant to AY 2006-07 was originally filed at ₹ 1,32,070/- on 27/12/2006. The assessment was finalized vide order under s.143(3) of the Act dated 27/11/2008. Thereafter, a search operation was carried out in Asian Group of cases on 07/02/2008. Consequently, the case of the assessee was covered under s.153C of the Act. In response to proceedings initiated under s.153C, the assessment was finalized under s.153C r.w.s.143(3) of the Act vide order dated 24/12/2009 wherein the total income declared by the assessee- company was accepted. Subsequent thereto, the CIT concerned, set aside the aforesaid assessment order passed under s.153C r.w.s. 143(3) of the Act in exercise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd non-descript. It was further observed that no information relating to incriminating material belonging to assessee-company seized as a result of search carried out in the case of Asian Group of cases on 07/01/2008 is found or available in the case records. It was further admitted by the AO in the foresaid inspection report that no satisfaction note as required for issuance of notice under s.153C dated 05/10/2009 is available on record. The Ld.AR thereafter invited our attention to an application made under Rule-6 of the RTI Act, 2005 dated 18/08/2017 addressed to Central Information Officer on 21/08/2017. With reference thereto, the Ld.AR further invited our attention to the reply thereof dated 12/09/2017 whereby an inability was expre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Coordinate Bench of Tribunal in ITA No.2483/Ahd/2014 order dated 21/062017 where in identical set of facts, the issue pertaining to legality proceedings under s.153 was decided in favour of assessee. The Ld.AR thereafter referred to the decision of Hon ble Delhi High Court in the case of Pr.CIT vs. Indus Securities Pvt.Ltd. Ors. in Tax Appeal No.566 Ors/2007 order dated 04/09/2017 and contended that possession of incriminating material belonging to other person (assessee herein) is paramount for invoking provisions of section 153C of the Act. The incriminating material being absent as demonstrated, the entire proceedings is bad in law. The Ld.AR thereafter submitted that the order under s.153C r.w.s.263 has been passed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds specific name of the searched person itself is not available on record. The proceedings under s.153C emanates from a valid proceedings under s.153A of the Act. The AO is apparently not privy to the details of searched person. The assumption of power for a non-descript and unintelligible entity is beyond comprehension. 8.1. We also take note of the another plea of the assessee as demonstrated from the inspection report that no incriminating material belonging to the assessee-company purportedly seized as a result of search carried out in Asian Group of cases was found available on the case records. We find considerable merit in this plea of the assessee as well predominantly for the reason that the Revenue has failed to demonstrate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.153C of the Act are not satisfied and the proceedings under s.153C is a complete non-starter. Thus, the notice issued under s.153C of the Act is clearly without sanction of law and thus void ab initio. The consequent proceedings and the assessment framed based on such illegal notice issued without authority of law is thus null and void. Therefore, the very edifice for framing the assessment order in appeal is crumbled. The revenue has totally failed to satisfy us about regularity of proceedings under s.153C of the Act. Consequently, the orders passed under s.153C are quashed. 9. In the result, both the Cross Objections for AYs 2005-06 2006- 07 filed by the assessee are allowed, whereas both the appeals of the Revenue for AYs 2005-06 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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