TMI Blog2018 (9) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... 10-9-2018 - MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM Appellant by : Shri Pramod Shingte Respondent by : Shri Abhishek Meshram ORDER Per Sushma Chowla, JM The appeal filed by the assessee is against the order of CIT(A)-12, Pune, dated 02.03.2015 relating to assessment year 2005-06 against order passed under section 143(3) r.w.s. 153C of the Income-tax Act, 1961 (in short the Act ). 2. The first issue arising in the present appeal vide additional ground of appeal is against validity of assessment framed under section 153C r.w.s. 143(3) of the Act. We proceed to take up the additional ground of appeal raised in the present appeal before addressing all the other issues raised in the original grounds of appeal. The additional ground of appeal reads as under:- A) That order passed by CIT(A) and AO are bad in law for the reason that period under consideration taken u/s 153C is barred by limitation / time barred. 3. Briefly, in the facts of the case, search and seizure action under section 132 of the Act was conducted in the Ashoka Group of cases on 20.04.2010. The assessee had originally filed the return of income under section 139 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned assessment year. In the facts of the case, search on the Ashoka Group of cases was conducted on 20.04.2010. The proceedings under section 153C of the Act were initiated against the assessee by recording satisfaction on 11.07.2012 and issue of notice under section 153C of the Act was on 11.07.2012 i.e. assessment year 2013-14. In case, the period of preceding six years is calculated, then same falls within assessment years 2007-08 to 2012-13. The assessment under section 153C of the Act has been initiated against the assessee for assessment year 2005-06 also, which admittedly is beyond the period of six years. 9. We have already decided similar issue of year falling within period of six years pursuant to initiation of 153C proceedings in Kewal Kumar Jain Vs. ACIT (supra). The Tribunal after applying the ratio laid down by the Hon ble High Court of Delhi in Pr. CIT Vs. Sarwar Agency (P.) Ltd. (2017) 397 ITR 400 (Del), held as under:- 9. We have heard the rival contentions and perused the record. Briefly, in the facts of the case, search under section 132 of the Act was carried out at the premises of Shri Shreeram H. Soni on 29.07.2003, wherein certain documents relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d heavy reliance on the ratio laid down by the Hon ble High Court of Delhi in Pr. CIT Vs. Sarwar Agency (P.) Ltd. (2017) 397 ITR 400 (Del). 11. We find that the Hon ble High Court of Delhi has adjudicated the said issue in detail i.e. assessment or re-assessment of other person under sub-section (1) of section 153C of the Act in accordance with the provisions of section 153A of the Act. The Hon ble High Court referred to the said provisions and observed as under:- 4. Sub-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 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reinbefore, once the AO of the searched person is satisfied that the seized assets/documents belong to another person and the said assets/documents have been transferred to the AO of such other person, the proceedings for assessment/reassessment of income of the other person has to proceed in accordance with provisions of Section 153A of the Act. Section 153A requires that where a search has been initiated under Section 132 of the Act, the AO is required to issue notice requiring the noticee to furnish returns of income in respect of six assessment years relevant to the six previous years preceding the previous year in which the search is conducted. As discussed hereinbefore, by virtue of second proviso to Section 153A, the assessment/reassessment pending on the date of initiation of search abate. In the context of proceedings under Section 153C of the Act, the reference to the date of initiation of the search in the second proviso to Section 153A has to be construed as the date on which the AO receives the documents or assets from the AO of the searched person. Thus, by virtue of second proviso to Section 153A of the Act as it applies to proceedings under Section 153C of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be six years preceding the year of search. It was reiterated that the said amendment was prospective 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 assessee by way of ground of appeal No.4 is thus, allowed. We are not addressing the issue on merits as assessment has been held to be invalid. 10. The issue which is arising in the present appeal is squarely covered by the ratio laid down by the Hon ble High Court of Delhi in Pr. CIT Vs. Sarwar Agency (P.) Ltd. (supra) and also by the Pun ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
