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2018 (9) TMI 886

d. case [2015 (11) TMI 19 - DELHI HIGH COURT] we hold that assessment proceedings initiated for assessment years 1999-2000 to 2001-02 are beyond the period of available under the proviso to section 153C read with proviso to section 153A of the Act and hence, the Assessing Officer had no jurisdiction to take up proceedings for the captioned assessment years. We hold that initiation and completion of proceedings against the assessee, who is ‘other person’ than searched person, is both invalid and bad in law. - decided in favour of assessee - ITA Nos.1381 to 1383/PUN/2016 - 30-8-2018 - MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM For The Assessee : Shri Rajendra Agiwal For The Revenue : Shri O.A. Mao ORDER PER SUSHMA CHOWLA, JM: This bun .....

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2004-05. We are concerned with the appeals relating to assessment years 1999-2000 to 2001-02. The Assessing Officer made certain additions in the hands of assessee vide order passed under section 143(3) r.w.s. 153C of the Act. 5. Before the CIT(A), the assessee challenged the validity of initiation and also the conduct of proceedings under section 153C of the Act. The challenge was that no proceedings could be initiated for the captioned assessment years as it was beyond the period of six years starting from the date of information received i.e. 15.06.2007. The assessee also challenged the assessment proceedings for non-issue of notice under section 143(2) of the Act. However, the CIT(A) dismissed both the contentions of assessee and decide .....

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. the person searched, then books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person. The proviso thereunder reads as under:- 153C(1)…….. Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to sub-section (1) of section 153A shall be construed as reference to 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 10. In view of proviso to section 153C of the Act, in the case of such other person , refere .....

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ub-section (1) of Section 153C provides that the assessment or re- assessment of the income of the 'other person' would be in accordance with the provisions of Section 153A. The first proviso to sub-section (1) of Section 153 C further states that, in case of such other person, the reference to the date of initiation of search in the second proviso to Section 153 A(1) shall be construed as reference to the date of receiving the books of accounts or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. 12. Thereafter, elaborating on the case of assessee, it was observed as under:- 5. In terms of Section 153 A(1) (b) of the Act, the AO shall assess or re- assess the total inco .....

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e searched person, the starting point for computation of the block period would be the date on which, based on the seized documents, notice is issued to the 'other person' under Section 153 C of the Act. Thus in the present case, the six year period prior to AY 2012-13 i.e. AY 2007-08 to AY 2012-13. Thus no notice could be issued under Section 153 C of the Act to reopen the Assessee's assessment for AY 2006- 07. Reliance is placed on the decision of this Court in Commissioner of Income-tax-7 v. RRJ Securities Ltd. [2016] 380 ITR 612 (Del) where this very question was examined and answered in favour of the Assessee and against the Revenue. 8. In RRJ Securities (supra), the Court after noticing the decision in SSP Aviation Ltd. v. .....

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ssment. However, in respect of concluded assessments, the AO would assume jurisdiction to reassess provided that the assets/documents received by the AO represent or indicate any undisclosed income or possibility of any income that may have remained undisclosed in the relevant assessment years..... 24. As discussed hereinbefore, in terms of proviso to Section 153C of the Act, a reference to the date of the search under the second proviso to Section 153A of the Act has to be construed as the date of handing over of assets/documents belonging to the Assessee (being the person other than the one searched) to the AO having jurisdiction to assess the said Assessee. Further proceedings, by virtue of Section 153C(1) of the Act, would have to be in .....

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ospective and the appeal of Revenue in that case was dismissed. 14. The issue arising in the present appeal before us is squarely covered by the ratio laid down by the Hon ble High Court of Delhi (supra) and following the same parity of reasoning, we hold that assessment proceedings initiated for assessment years 1999-2000 to 2001-02 are beyond the period of available under the proviso to section 153C read with proviso to section 153A of the Act and hence, the Assessing Officer had no jurisdiction to take up proceedings for the captioned assessment years. We hold that initiation and completion of proceedings against the assessee, who is other person than searched person, is both invalid and bad in law. The jurisdictional issue raised by the .....

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