TMI Blog2018 (3) TMI 1995X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2011 12 is also covered by section 153A/153C and therefore, there is no apparent mistake in these two tribunal orders. Revenue raised ground that the issue of the period of six assessment years for the purpose of section 153C of the Act is a fresh ground raised by the learned AR of the assessee raised in the course of hearing of the M. P - We find that this is not a fresh ground raised by assessee in the course of hearing of the M. P. In fact, this is the ground raised by the revenue in these M. Ps. that the present year cannot be a part of six years covered u/s 153C and in reply thereto, assessee has placed reliance on the judgment of RRJ Securities Limited ( 2015 (11) TMI 19 - DELHI HIGH COURT] and it was contended that as per this judgment, the present assessment year 2011 12 is also covered by section 153A/153C and therefore, there is no apparent mistake in these two tribunal orders. Hence, this contention is also not rendering any help to the revenue. Thus we hold that the present assessment year 2011 12 is also covered by section 153A/153C in the facts of the present case and therefore, there is no apparent mistake in these two tribunal orders. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K.Raghavacharyulu. Pursuant to the search, proceedings under section 153C of the Act were initiated in the case of the assessee for the Assessment Year 2005-06 to 2010-11 after recording satisfaction required under section 153C of the Act. Assessments were completed under section 153C of the Act for the Assessment Year 2005-06 to 2010-11. The Assessment Year 2011-12 being the year of search, assessment proceedings were completed under section 144 r.w.s 153D of the Act. 2. The assessment orders for Assessment Year 2005-06 to 2011-12 was subject matter of appeal before the Commissioner of Income Tax - Appeals. The assessee being aggrieved against the order of Appellate Commissioner preferred appeals before this Hon ble Tribunal for Assessment Year's 2005-06 to 2011-12. This tribunal by common order dated 17/10/2016 setaside the assessment orders for the Assessment Year's 2005-06 to 2011-12 on the ground that satisfaction under section 153C of the Act was not recorded by the Assessing Officer of the searched person. The assessment for the Assessment Year 2011-12 was regular assessment and no proceedings were initiated under section 153C of the Act. Hence setting aside of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer having jurisdiction over such other person. 8. On a combined reading of section 153A(1)(b), first and second proviso to section 153A of the Act, Section 153C and the first proviso to section 153C of the Act would mandate that period of six assessment years for the purposes of section 153A and 153C of the Act is one and the same and would not alter in respect of both the provisions. The above understanding is further strengthened by the language of section 153C(1) of the Act wherein issue of notice and assess or reassess the income of the other person in accordance with the provisions of section 153A of the Act is provided. Even if the proceedings under section 153C of the Act are initiated, the procedure is contemplated under section 153A of the Act. In view of the above, period of six assessment years for the purpose of section 153A of the Act referred to in clause (b) to section 153A(1) of the Act would equally apply to section 153C of the Act. 9. The above issue has been considered by the Delhi High Court in the case of SSP aviation Ltd 346 ITR 177 wherein at para-14 held as under: 14. Now there can be a situation. when during the search con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to in section 153A(1)(b) of the Act. Further the Delhi High Court has not considered the implication of reference made to section 153A of the Act in section 153C of the Act enabling issue of notice and assess or reassess the income of the other person in accordance with the provisions of section 153A of the Act. 11. Further the Delhi High Court has not specifically held that the period of six assessment years would be different for the purpose of section 153A and 153C of the Act. 12. Assuming without admission if the contention of the assessee that period of six years has to be recorded with reference to the date of receiving the books of account or documents or asset seized or requisitioned by the Assessing Officer having jurisdiction over such other person, the same would amount to rewriting of section 153C of the Act which is specifically disapproved by Apex Court and various High Courts. 13. If the contention of the assessee is to be analysed, that proceedings under section 153C of the Act can be initiated on the Assessing Officer being satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. Wherefore, it is respectfully prayed that this Hon'ble Tribunal may be pleased to allow the Miscellaneous Petition, restore the appeal for the Assessment Year 201112 and adjudicate the matter on merits in the interest of justice and equity. 4. It is also submitted that the reliance placed by the learned AR of the assessee on a judgment of Hon ble Delhi High Court rendered in the case of CIT vs. RRJ Securities Limited as reported in 380 ITR 612 is incorrect because in that case, the limited issue under consideration was second proviso to section 153A and first proviso to section 153C in respect of point of abatement. It is also submitted that Hon ble Delhi High Court has not specifically held that the period of six assessment years would be different for the purpose of section 153A 153C of I T Act. 5. One more submission is made by the learned DR of the revenue that under section 153C, the satisfaction to be recorded by the A.O. of the searched person is this that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs to a different person. It is submitted that admittedly, the period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... faction note that is, 8th September, 2010 and not the date of search. 24. As discussed hereinbefore, in terms of proviso to Section 153C of the Act, a reference to the date of the search under the second proviso to Section 153A of the Act has to be construed as the date of handing over of assets/documents belonging to the Assessee (being the person other 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 year 2003-04 and 2004-05 would be beyond the period of six assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of SSP Aviation Ltd. (Supra) was considered by Hon ble Delhi High Court in the later judgment rendered in the case of CIT vs. RRJ Securities Limited (Supra) on which, reliance has been placed by the learned AR of the assessee. In this case also, this contention was raised by the revenue before Hon ble Delhi high court 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. But this was held by Hon ble Delhi High court that if this interpretation as canvassed by the revenue is accepted, it would mean that whereas in the case of a person searched, the reopening will be for six years being prior to year of search but in case of the other person who was not searched but his assets were seized from the searched person, the period for which the assessment could be reopened would be much beyond the period of six years from the date of handing over of the assets/documents. 8. In the present case, although the search has taken place on 25.10.2010 but the satisfaction note was recorded on 14.12.2012, (relevant to A. Y. 2013 14) by the AO of the assessee in his capacity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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