9911796707
TMI Blog2020 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) respectively for the assessment years 2009-10 to 2015-16. 2. The above appeals were admitted on the following substantial questions of law: "i. Whether, in the facts and circumstances of the case, the Tribunal is right in law in holding that the Assessing Officer ought not to have assumed the jurisdiction under Section 153C of the Act ? ii. Whether, in the facts and circumstances of the case, the Tribunal erred in not appreciating the fact that not bringing on record the incriminating material in the assessment order is only procedural lapse and on account of such procedural lapse, substantial justice out not to suffer ? iii. Whether, in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Madurai. Simultaneously, the search action was conducted in the case of one Mr.T.John Rajasekhar, who is stated to be the supplier of medical and surgical equipment and other accessories to the hospital. The Department was of the prima facie view pursuant to the search that the funds were siphoned off through the said Mr.T. John Rajasekhar allegedly resorting to huge inflation of expenses through salaries paid to staff members by transfer of funds to the bank accounts of the employees as if salaries were paid to them. 5. Based on the seized documents, a notice under Section 153 of the Act was issued for the assessment years under consideration in the case of the assessee's trust. Ultimately, on 31.12.2016, the assessments were comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and seized from the residence of the President of the assessee, an educational institution, indicating capitation fees received by various institutions run by the assessee did not establish correlation document-wise with the assessment years in question, the notice issued under Section 153C of the Act has to be quashed. The findings of the Hon'ble Supreme Court in this regard are as follows : "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 As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... juncture, it has to be pointed out that on facts, the CIT(A) and the Tribunal held that there was no material brought on record to prove the nexus between withdrawal of the amount from the bank account of the said Mr.T.John Rajasekhar and the deposits made in the bank accounts of Dr.Gurusankar, managing trustee of the assessee trust. Further, the CIT(A) and the Tribunal noted that the said Mr.T.John Rajasekhar had not admitted that money was paid back to the managing trustee of the assessee trust. Furthermore, on facts, it was found that the materials seized did not indicate any inflation of purchase by the assessee trust and that the deposits in the bank account of the said Dr.Gurusankar stood explained. 10. The Tribunal further noted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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