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TMI Blog2019 (8) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions are filed by the assessee in support of the order of the Ld.CIT(A) for the Assessment Year (A.Y.)2014-15. 2. Brief facts of the case are that a search and seizure operation u/s 132 was conducted in the case of Shri Alla Siva Reddy on 21.12.2015 who is the father of the assessee. During the course of search, incriminating material relating to the assessee was found and seized as Annexure A/ASR/RES/LS/02, wherein it is evidenced that the assessee had purchased gold ornaments worth Rs. 1,83,375/- from M/s Mine Diamonds Limited on 22.08.2013. Some other material was also found indicating the unexplained investments made by the assessee. Hence, the Assessing Officer (AO) issued the notice u/s 153C on 28.02.2017 calling for the return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the validity of issue of notice u/s 153C is a legal issue and goes to the root of the assessment, we take up first the ground raised by the assessee in cross objection with regard to the validity of issue of notice u/s 153C of the Act. 4.1. During the appeal hearing, the Ld.AR submitted that the assessee has filed the return of income for the A.Y.2014-15 on 28.01.2015 and the search was conducted on 21.12.2015. By the time, the search was conducted; the time limit for issue of notice u/s 143(2) got expired, hence, invoking the provision of Seciton 153 is not permissible in this case. The Ld.AR further submitted that during the course of search, no incriminating material relating to the escapement of income was found, therefore, the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the AO is not permitted to invoke the jurisdiction u/s 153C and make the consequent additions. On identical facts, this Tribunal in the case of Lalitha Devi, Kakinada. v. ACIT, Central Circle, Rajahmundry in I.T.A.Nos.111& 112/Vizag/2017 for the Assessment Years: 2007-08 &2008-09 dated 04.04.2018 has quashed the notice u/s 153C. For the sake of convenience we, extract the relevant part of the order of this Tribunal which reads asunder: "8. As per the provisions of section 153C of the Act also, the A.O. required to issue the notice only on the basis of money, bullion, jewellery, other article or thing seized or requisitioned belonged to or any books of accounts or documents seized or requisitioned pertains to or pertain to the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi in the case of Assistant Commissioner of Income-tax, Central Circle-09.v.Anush Finlease & Construction (P.) Ltd., [2019] 104 taxmann.com 295 (Delhi - Trib.) has taken the similar view following the order of Hon'ble Delhi High court in the case of Index Securities (P.) Ltd. . For the sake of clarity we, extract the relevant part of the decision of coordinate bench which reads as under: "6. Thus, it is not in dispute that the only material on the basis of which proceedings u/s. 153C were initiated was the audited balance sheet and financial statements of the assessee for the year ended on 31st March, 2009. That Hon'ble Jurisdictional High Court has considered identical issue in the case of Index Securities (P.) Ltd. (supra) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, it is futile for Mr Manchanda to contend that this requirement need not be met for initiation of the proceedings but only during the subsequent assessment." 7. That in paragraph 31 above, their Lordships have pointed out the document must be incriminating and it must relate to the assessment year whose assessments are sought to be reopened. In this case, admittedly, the document was relating to assessment year 2009-10 while the assessment reopened is for 2010-11. Therefore, the requirement that the document should relate to the assessment year sought to be reopened is not fulfilled. Moreover, how the audited balance sheet and financial statements of the assessee are incriminating material has also not been proved. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision, it becomes a jurisdictional fact. We find this reasoning to be logical and valid, having regard to the provisions of Section 153C of the Act. Para 9 of the order of the ITAT reveals that the ITAT had scanned through the Satisfaction Note and the material which was disclosed therein was culled out and it showed that the same belongs to Assessment Year 2004-05 or thereafter. After taking note of the material in para 9 of the order, the position that emerges there from is discussed in para 10. It was specifically recorded that the counsel for the Department could not point out to the contrary. It is for this reason the High Court has also given its imprimatur to the aforesaid approach of the Tribunal. That apart, learned senior cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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