TMI Blog2022 (9) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... no legs to stand.- Decided in favour of assessee. - ITA No.144/Chny/2018 - - - Dated:- 30-8-2022 - Hon ble Shri Mahavir Singh, Vice President And Hon ble Shri Manoj Kumar Aggarwal, AM For the Assessee : Shri B. Ramakrishnan (F.C.A)-Ld. AR For the Revenue : Shri Guru Bashyam (CIT)-Ld. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2007-08 arises out of the order of learned Commissioner of Income Tax (Appeals)-18, Chennai [CIT(A)] dated 28.11.2017 in the matter of an assessment framed by Ld. Assessing Officer u/s 153C r.w.s. 143(3) on 31.03.2015. The assessee has filed concise grounds of appeal on 26.04.2018 which read as under: 1. The Ld. CIT(A) is wrong in holding that there was a transfer of capital assets during the previous year on the basis of an unregistered JDA dated 30th March, 2007 as the decision of the apex court reported in 398 ITR was not applicable to in the facts of the case. 2. The CIT(A) ought to have held the appellant was a dealer in real estate development and therefore the subject matter of JDA was only with regard to the stock in trade and not capital asset 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04.2014. 3.2 The assessee objected to the jurisdiction u/s 153C of the Act and requested for furnishing the justification and basis of issue of notice u/s 153C r.w.s. 153A. The assessee also sought information as to the date of receipt of relevant document from the AO of the searched person. 3.3 However, these objections were over-ruled primarily on the ground that notice was issued on the basis of a seized documents containing JDA dated 30.03.2017 found during the course of search u/s 132 on 10.01.2013 from the residential premises of Shri M. Ramasami, Chairman-cum-Managing Director of M/s Rasi Seeds Private Ltd. Since the documents belonged to the assessee, proceedings u/s 153C r.w.s. 153A were required to be initiated for AYs 2007-08 to 2012-13. It was also informed that jurisdiction over the case of Shri M. Ramasami as well as assessee vested with the office of same assessing officer and a noting of the satisfaction was made separately by DCIT, Central Circle-II, Coimbatore that the seized document belonged to the assessee. Such recording of satisfaction was made the case of Shri M. Ramasami on 23.09.2013. Since the AO having jurisdiction over both the assessees was one a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has raised a pertinent legal issue contesting the jurisdiction of Ld. AO, we take up the same first. It could be seen that pursuant to search action u/s 132 on 10.01.2013 in the case of M/s Rasi Seeds Private Ltd. group of cases, certain documents were found from the resident of Shri M. Ramasami, Chairman-cum-Managing Director of that entity. The documents, inter-alia, contained Joint Development Agreement (JDA) dated 30.03.2007 between the assessee (land-owner) and another entity namely SMS Gardens (P) Ltd. (SGPL) (developer) for the construction of a residential complex on certain land owned by the assessee at Coimbatore. 6. Since the seized document belonged to the assessee, proceedings u/s 153C r.w.s. 153A was initiated against the assessee after recording of reasons and after obtaining due approval of prescribed authority. The case of the assessee was centralized vide Notification No.07/2013-14 dated 20.08.2013 and notice u/s 153C r.w.s. 153A was issued on 24.09.2013. In response, the assessee filed return of income on 01.04.2014. 7. It could be seen that jurisdiction over the case of Shri M. Ramasami as well as the assessee vested with same AO and a satisfact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch on a person, if AO is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of any other person then the books of account or documents or assets so seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in sub section (1) of section 153A. It has further been provided that in case of such other person, the reference to the date of initiation of the search u/s 132 or making of requisition under section 132A in the second proviso to sub-section (1) of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her than the one searched) to the AO having jurisdiction to assess the said Assessee. Further proceedings, by virtue of Section 153C(1) of the Act, would have to be in accordance with Section 153A of the Act and the reference to the date of search would have to be construed as the reference to the date of recording of satisfaction. It would follow that the six assessment years for which assessments/reassessments could be made under Section 153C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the AO of the Assessee. In this case, it would be the date of the recording of satisfaction under Section 153C of the Act, i.e., 8th September, 2010. In this view, the assessments made in respect of assessment years 2003-04 and 2004-05 would be beyond the period of six assessment years as reckoned with reference to the date of recording of satisfaction by the AO of the searched person. It is contended by the Revenue that the relevant six assessment years would be the assessment years prior to the assessment year relevant to the previous year in which the search was conducted. If this interpretation as canvassed by the Revenue is accep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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