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TMI Blog2021 (6) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... acres under a 99 year deed of lease dated 11.05.2005. 2. The setting up of the unit was delayed and extension of time was sought for by the petitioner from time to time in regard to the deployment of the property for its business. However, according to the petitioner, despite its best efforts, the petitioner was unable to commercially exploit the premises even after a decade from its allotment. 3. In 2016, a group of shareholders of the petitioner company belonging tothe family of Dinesh Chand Surana ('individual'), who wished to exit the business had offered their shares to the remaining shareholders. Since the shareholders were not willing to increase their share-holding, the said individual undertook to find buyers for the company, such that all existing shareholders could exit. 4. On 01.10.2016, a Board resolution was passed recording the position that the existing shareholders resolved to exit the company and the aforesaid individual was authorised to identify a purchaser and engage in all actions for this purpose. According to the petitioner, the individual was not authorised to receive any consideration towards the aforesaid arrangement, either in part or in full and his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 11.12 acres (property/property in question). Despite the petitioner having objected to the same, there was neither any response nor action taken by the respondents to lift the attachment, and hence W.P.No.14023 of 2019 came to be filed before this Court seeking a quash of the provisional attachment order. 10. In that Writ Petition, a counter had been filed dated 19.06.2019 wherein the Additional Deputy Director of Income Tax (Inv.) (R3 in that Writ Petition) had stated that the seized documents could not be returned since the file was to be handed over to the appropriate Assessing Authority for assessment proceedings to be initiated as against the petitioner. The counter went on to state that the Writ Petition was itself infructuous, since the provisional attachment had ceased to have effect after the expiry of six months from the date of attachment as per Statute. 11. The counter confirmed the position that as on that date, proceedings had yet to be initiated and that a notice under Section 153A or 153C as appropriate, was in the offing. Pending Writ Petition, a notice under Section 153C was received by the petitioner calling for returns for Assessment Year (AY) 2017. The noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as income from other sources in its hands. Various documents were called for. 16. The petitioner reiterated its earlier request for materials said to have been found in the search and such materials as well as some of the statements recorded in the course of search were furnished to it. R2, on 02.12.2019 issued an order of provisional attachment under Section 281B. It is at that juncture that the present Writ Petition has come to be filed, on 18.12.2019, wherein the petitioner prays for a Writ of Certiorari quashing notices issued under Section 153C dated 30.09.2019 and show cause notice dated 29.10.2019. 17. According to the petitioner, the proceedings initiated under the impugned notices are without jurisdiction, since there is no income escaping assessment, which a pre-condition for the initiation of the proceedings themselves. The petitioner would urge that the seized documents do not incriminate it in any way and hence the respondents ought not to have commenced the present proceedings based on those documents. 18. Though reference is made to the factual aspects of the matter, i.e., the details of the materials seized, and the circumstances in which the documents came to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered by the officer to determine whether is any undisclosed income to be brought to tax and the proper person/entity in whose hands it must be brought to tax. 24. This is not an issue that can be looked into in a writ petition as it involves determination of disputed facts. The challenge to assumption of jurisdiction by the assessing officer would have to be seen in the context of whether there has been escapement of income. The two issues are thus closely interlinked and one cannot decide the question of jurisdiction without rendering a finding on the aspect of escapement of income. I thus decline to interfere in the challenge to assumption of jurisdiction, on this score. 25. The petitioner would also state that no satisfaction note, as contemplated under Section 153C has been furnished, despite a specific request. This is a precondition for the initiation of proceedings under Section 153 C in the absence of which the entire proceedings stand vitiated. The counter filed by the respondents in the earlier writ petition had initially stated that a notice under Section 153A/C was in the offing. Thereafter, and pending Writ Petition, a notice dated 14.06.2019 was received by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bullion/jewellery/other valuable article or thing/ books of account/ documents) (b) Description of the seized material (c) Address of premise/ place from where such material was seized. (d) Date of seizure of such material (e) Particulars of the relevant panchnama (f) Annexure/S.No./Page number etc. (particulars to be specified) Search proceedings were conducted in the case of Smt.Sasikala on 09.11.2017. During the search and seizure proceedings in the case of V.K.Sasikala Group at Room No.302, Shylee Niwas Service Apartment, Nutech Washington, Old No.41, New No.76, Block - II, 1st Main Road, CIT Nagar, Nandanam, Chennai on 18.11.2017 various incriminating materials in the form of lease agreements, incorporation certificates, original Share certificates and Memorandum of Understandings (MOUs) were seized vide annexure ANN/KGA/VKS/LS/S-2 to the Panchnama dated 18.11.2017 and incriminating materials in the form of loose sheets (page numbered 18 & 19) seized from the premises of Smt.Krishnapriya, daughter of Smt.Ilavarasi, at 181/69, Habibullah Road, T.Nagar, Chennai on 11.11.2017 vide annexure ANN/MS/KK/LS/S to the Panchanama dated 11.11.2017 which contained details of v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... astructure Pvt Ltd. 70-95 Original Lease Deed between SIPCOT and M/s.6th Sense Infrastructure Pvt Ltd. 11 May 2005 96 Incorporation certificate of M/s.6th Sense Infrastructure Pvt Ltd 97-102 Memorandum of Understanding for sale of equity shares of M/s.6th Sense Infrastructure Pvt Ltd. for Rs. 16 Crs. Singed by Lalit Mehta Mr.A.Nanda Kumar and Dinesh Chand Surana. 103-195 Original Share Certificates of M/s.6th Sense Infrastructure Pvt Ltd * In view of the seizure of these highly incriminating materials, Shri.Senthil was summoned once again and confronted with the seized materials. During the course of the enquiry he confirmed the seized MoUs were the ones which were executed by Smt. Sasikala with the vendors. The relevant portion of sworn statement Shri.Senthil dated 11.11.2017 is reproduced below:- ......... Satisfaction Note u/s.153C ......... Consequently the Assessing Officer of Sasikala Group after recording satisfaction in the capacity of Assessing Officer of the searched party handed over the seized materials on 27.08.2019 to this office i.e. ACIT, Central Circle 2 (3), Chennai which is having jurisdiction over the case of M/s.Surana Corporation Ltd a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Surana Corporation Ltd. 7 Satisfaction of the Assessing Officer of the person referred to in section 153A that the seized material referred to in S.No.5 with the person referred to in S.No.4 I am satisfied that the incriminating documents/loose sheets Seized vide annexure ANN/KGA/VKS/LS/S-2 & ANN/MS/KK/LS/S contain (1) Original Share certificates, Mou and (2) the details of money receipts towards sale of the property to the tune of Rs. 86 crores but not entered into its regular books of accounts for the A.Y.2012-13 to 2018-19. Hence, I am satisfied that the above mentioned seized materials have a bearing on the determination of the total income of the assessee for the A.Y.2012-13 to 2018-19. 8 Assessment Years involved A.Y.2012-13 to 2018-19 Name and Designation of the A.O: Date : 30.09.2019 Place: Chennai (Sd/-) XXXX (H.MAHENDRAN) Assistant Commissioner of Income Tax Central Circle 2(3), Chennai. 30. The petitioner has referred to the judgment of the Supreme Court in the case of Manisha Maheswari V. Assistant Commissioner of Income Tax and another (289 ITR 341) wherein the Supreme Court had reiterated the necessity for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceedings as, the invalid notice is one that does not exist in the eyes of the law and must thus be ignored. The provisions of Section 282 deal with service of notice in general terms and Section 282A with the authentication of notices for service by electronic means. In this case, it is not in dispute that notice dated 30.09.2019 is a valid notice qua the provisions of Sections 282 and 282A read with Rules 127 and 127A. The issuance of notice dated 14.06.2019 does not vitiate the impugned proceedings in any way. 37. Though the decision of the Calcutta High Court in Shrikant Mohta V. Commissioner of Income Tax (414 ITR 270) is placed as part of the compilation, it has not been referred to in the course of the arguments. An extract from the Income Tax Business Application Portal is also filed, perhaps to indicate the transition of proceedings from manual to electronic mode. However, there is no challenge to the mode of proceedings in this matter. 38. For the aforesaid reasons, the challenge to impugned notices dated 30.09.2019 under Section 153C and show cause notice dated 29.10.2019 is rejected. Proceedings for assessment shall continue and be concluded in accordance with law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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