TMI Blog2020 (11) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... 50/- and in pursuant to search, he filed return of income on 20.04.2015 declaring the same. We also noticed that on the date of search or satisfaction recorded, there is no any iota of evidence that the assessment was pending before the Revenue department. Accordingly, we have no hesitation but to uphold the findings of the CIT(A) annulling the assessment completed u/s. 153C of the Act in absence of any incriminating material. - Appeal of the Revenue is dismissed. - IT (SS) A. No. 136/CTK/2018 - - - Dated:- 20-2-2020 - C. M. Garg, Member ( J ) And L. P. Sahu , Member ( A ) For the Appellant : S. M. Keshkamat, CIT-DR For the Respondents : S. K. Tulsiyan, Advocate ORDER L.P. Sahu, Member (A) This is an appeal filed by the Revenue against the order of CIT(A)-2, Bhubaneswar, dated 25.06.2018 for the assessment year 2011-2012 on the following grounds:- (i) On the point of law involved in the case, the Ld. CIT (Appeals) erred in annulling the assessment order passed u/s. 153C r.w.s. 144 of the Income Tax Act, 1961 without applying the provisions of the Income Tax Act 1961. (ii) The Ld. CIT (Appeals) erred in not applying the provisions of section 153C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment is that section 153C of the Act merely stipulates that the seized documents should belong to or pertain to Assessee and there is no requirement of the same to be incriminating in nature. 2. In connection with the said above contention of the Department, it is stated that it is the absolute clear and explicit mandate of law fully endorsed and upheld by judicial decisions including that of the Hon'ble Apex Court that where no specific incriminating material or document is found, assessments for such assessment years cannot be disturbed by invoking the provisions of s. 153C of the Act. 3. Dealing firstly with the law, the relevant portion of section 153C of the Act is quoted as under: 153C. Assessment of income of any other person.- (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety vs. ACIT (2011) 57 DTR 0241. Facts: Search and seizure--Assessment under s. 153C Absence of incriminating material--Where no assessment year specific incriminating material or document is found, assessments of such assessment years cannot be disturbed by invoking the provisions of s. 153C Search and seizure operation under s. 132 was carried out in the case of N, president of the assessee-society--AO issued notice under s. 153C to the assessee after recording the reasons on the basis of loose papers seized from N and eventually made assessment by denying exemption under s. 11--Impugned reasons mentioned by the AO are silent insofar as discovery of any assessment year specific incriminating information relating to the assessee is concerned--Satisfaction note recorded by the AO is very general one-- Reasons recorded by the AO do not contain anything incriminating for the assessment years upto 2003-04--There is no mention of any document relatable to four years in question and thus incriminating nature of the same is out of question--Concluded assessments cannot be disturbed merely for making routine additions--Therefore, order passed by the AO under s. 153C is bad in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P) Ltd. New... Vs. Assessee on 6 June, 2016 - ITA No. 5116/del/2013 - ITAT, Delhi. Respectfully following the judgment of Hon'ble Jurisdictional High Court in the case of RRJ Securities (supra), and the facts of the case and provisions of Section 153C of the Act discussed above and the undisputed fact that no incriminating material was found in respect of other than searched person i.e. the appellant and following the principles laid down in the case of Kabul Chawla (supra), to meet the ends of justice, we allow both the grounds of appeal. 6. Therefore the analysis of section 153C of the Act and relevant judgments on the same makes it amply clear that jurisdiction of assessing officer of the assessee vest only when the satisfaction of AO, of the person in whose case search was conducted, is recorded that the seized document which are incriminating in nature belong or belongs to the assessee so as to initiate proceedings u/s. 153C of the Act for each years for which satisfaction is recorded for issuance of notices u/s. 153C In absence of any incriminating material relating to the assessee, no assessment u/s. 153C of the Act can be framed. 7. Thus, in view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gad Technical Education Society by Hon'ble Tribunal, Pune, by Hon'ble High Court of Bombay and by Hon'ble Supreme Court of India have been relied upon by the appellant. These decisions are squarely applicable to the case of the appellant. 3.8 Considering these facts and judgments of various courts, in particular, the decision of Hon'ble Supreme Court in the case of Sinhgad Technical Education Society (supra), I am of the considered view that, in the absence of incriminating material in the case of the appellant, the assessment framed u/s. 153C of IT Act, 1961 by the assessing officer is bad in law and it is annulled. 8. While dealing with the issue, the CIT(A) examined the documents referred to by the AO i.e. BNAH-01, BNAH-02 and BNRO-18 and found that there is not a shred of incriminating material against the assessee. The judicial opinion on the issue of notice and framing of assessment u/s. 153C of I.T. Act, 1961, is that the assets or books of account or documents or information relating to/pertaining to the 'Other Person' must be incriminating in nature. Thereafter the CIT(A) annulled the assessment framed by the AO u/s. 153C of the Act relyin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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