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TMI Blog2018 (8) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... quent to the search conducted under section 132 in the group cases, notices under section 153C of the Act was issued to the assessee on 03/03/2010 calling for the returns of income for the Assessment Years 2005-06 to 2007-08. The assessee filed returns of income on 17/05/2010 and subsequently, the Assessing Officer completed the assessments under section 143(3) r. w. s. 153C of the Act by orders dated 30/12/2010. The details of the date of filing of the original return of income and time limit for issuance of notice under section 143(2) of the Act are as under:- Assessment Year Date of filing of return of income Time limit for issuance of notice u/s 143(2) 2005-06 06/12/2005 31/12/2006 2006-07 13/03/2007 31/03/2008 2007-08 30/03/2008 31/03/2009 Assessments are completed by assessing the total income under section 143(3) r. w. s. 153C of the Act are as under:- Assessment Year Assessed income 2005-06 Rs. 1, 88, 990/- 2006-07 Rs. 4, 21, 350/- 2007-08 Rs. 2, 35, 600/- 4. Aggrieved by the order of the Assessing Officer, the assessee went on appeal before the Ld. CIT(A) and challenged the validity of issuance of notice under section 153C of the act. 5. The ld. coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilding baring door no. 4-7 in TempleStreet, an extent of 753. 6 sq. yards and approached the municipality for reconstruction of anew building permission was granted for the construction of the building in B. A. No. 773/2002/G2 dated 25-2-2002. We have started reconstruction of the building as per the plan sanctioned by the municipality. While the construction is in progress we have purchase the neighboring building baring door no. 27-4-8 with an extent of area 1287. 22 sq. yards on dated 5-2-2004. Here we have applied forarevised, fresh plan forreconstruction/redevelopment of a residential apartment. And the matter was referred to the director of the town planning (Hyderabad). There upon the DTP in his letter D. D. is no. 4647/06/R dated 1-6-2006 as asked the Commissioner of Kakinada municipality to the collect the proportionate 10% open placecost for the remaining area of which the buildingpermission approved by the municipal commissioner of Kakinada. In this connection we submit that the proposed reconstruction of the building is located in the builtup and well developed area where all wise amenities were provided by the municipality and no further development is necessary. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years. Similarly, the affidavit dated 01/01/2008 related no objection of the co-owners of the land for selling their shares 985 sq. yds independently. The affidavit also does not indicate any financial transaction leading to escapement of income or suppression of the receipt or unexplained investment to the year under consideration. Scrutiny on both the documents clearly indicates that they are not pertaining to under-statement of income by the assessee, hence, they cannot be treated as incriminating material for issuance of notice u/s 153C. In the assessment orders also, the Assessing Officer did not make any addition on the basis of above documents. All the additions were made as per the information already available in the assessment record. 12. In the instant case, the Assessing Officer issued notice under section 153C on 03/03/2010 and search was conducted in the group cases on 03/03/2009. By the time of search conducted in the group cases, the time limit for issuance of notice under section 143(2) got expired for the A. Ys. 2005-06 and 2006-07. In the case of A. Y. 2007-08 the notice was issued on 03/10/2009 and by the time the notice issued the time limit for issue of no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such other person for the relevant assessment year or years referred to in sub-section (10 of section 153A]. " It is settled law that in the case of completed assessments, no addition under section 153C is permitted to be made without having the seized material. On an identical facts, this Tribunal in the case of Lalitha Devi vs. Assistant Commissioner of Income Tax, (2018) 52 CCH 0472 Visakhapatnam (Trib. ) held that invoking provisions of section 153C of the Act without having incriminating material is bad in law. This view is supported by the decision of the Hon'ble Supreme Court in the case of CIT vs. Singhad Technical Education Society (2017) 397 ITR 344. Hon'ble Supreme Court in the case cited supra held as under: "18. The ITAT permitted this additional ground by giving a reason that it was a jurisdictional issue taken up on the basis of facts already on the record and, therefore, could be raised. In this behalf, it was noted by the ITAT that as per the provisions of Section 153C of the Act, incriminating material which was seized had to pertain to the Assessment Years in question and it is an undisputed fact that the documents which were seized did not establish an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no indication of any financial transaction leading to understatement of income except the mention of purchase of property on 05/02/2004 which is relevant to the Assessment Year 2004-05 and are not relevant to the assessment years under consideration. Therefore, the said documents cannot be held to be the incriminating material for the purpose of initiating the proceedings under section 153C of the Act. As discussed earlier the assessments in this case are completed, since, the time limit for issue of notice u/s 143(2) got expired before the date of search, the AO did not make any addition in the assessment orders on the basis of the seized material. Therefore respectfully following the view taken by the coordinate bench of the tribunal in the case of Lalitha Devi (supra) and the decision of the Hon'ble Supreme Court in the case of Singhad Technical Education Society (supra), we hold that the AO cannot disturb the completed assessments without having the seized material and the notice issued under section 153C without having any incriminating material is invalid and unsustainable. Accordingly, we set aside the orders of lower authorities and allow the appeal of the assessee. 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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