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TMI Blog2024 (7) TMI 1575X X X X Extracts X X X X X X X X Extracts X X X X ..... Circle-1(2), Ahmedabad to the AO of the assessee, based on which proceedings under Section 153C r.w.s. 153A of the Act was initiated in the case of the assessee. The assessment for A.Y. 2011-12 was completed under Section 143(3) r.w.s. 153C of the Act on 30.10.2018 at total income of Rs. 24,96,120/-. Aggrieved with the order of the AO, the assessee filed an appeal before the First Appellate Authority, which was decided by the Ld. CIT (A) vide the impugned order and the appeal of the assessee was dismissed. Now, the assessee is in appeal before us. 3. The assessee has taken following grounds in this appeal: "1. On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) has erred in confirming an addition of INR 22,56,000 under section 69 of the Act being alleged cash payment for purchase of property in as much as there is no evidence about payment of cash by the Appellant 2. On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) has erred in confirming an addition merely basis on excel sheet from a searched person without any corroborative evidence 3. On the facts and in the circumstances of the case and in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised by the appellant before Hon'ble Income Tax Appellate Tribunal, in view of following decision of Hon'ble Courts: * National Thermal Power Co. Ltd vs. CIT 229 ITR 383 (SC) * Jute Corporation of India Ltd 187 ITR 688 (SC) * Ahmedabad Electricity Co. Ltd 199 ITR 351 (Bom) (FB) In view of the above, we request Your Honours to kindly consider our additional ground of appeal and decide on merits." 5. As the additional grounds taken by the assessee goes to the root of jurisdiction of the AO for conducting assessment under Section 153C of the Act for this year, we deem it proper to adjudicate the additional ground first. 6. Shri Dhinal Shah, the Ld. AR of the assessee explained that proceeding under Section 153C of the Act was initiated by the AO on 31.03.2018. He explained that a copy of the satisfaction note of the AO to initiate the proceeding under Section 153C r.w.s. 153A of the Act was obtained in the course of assessment proceedings, which is placed at page nos. 4 to 9 of the paper book filed by the assessee. The Ld. AR submitted that the AO while recording the satisfaction on 31.03.2018 had initiated proceedings under Section 153C r.w.s. 153A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such other person shall initiate proceedings under Section 153C of the Act, if he is satisfied that such books of accounts or documents have a bearing on the determination of the total income of such other person. The proceedings under Section 153C of the Act can be initiated for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made. The first proviso of Section 153C of the Act further explains the date of initiation of search for the proceedings under Section 153C of the Act as under: Provided that in case of such other person, the reference to the date of initiation of the search under section 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 having jurisdiction over such other person : 9. The above proviso makes it crystal clear that the date of initiation of search as referred in 2nd Proviso of Section 153A of the Act shall be construed as reference to the date of receiving the bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e computed from the date of receipt of books of accounts or documents by the AO of the non-searched person. This principle has been upheld by the Hon'ble Supreme Court in the case of CIT vs. Jasjit Singh (supra), wherein Hon'ble Court held as under: 10. This Court is of the opinion that the revenue's argument is insubstantial and without merit. It is quite plausible that without the kind of interpretation which SSP Aviation adopted, the A.O. seized of the materials of the search party, under section 132 would take his own time to forward the papers and materials belonging to the third party, to the concerned A.O. In that event if the date would virtually "relate back" as is sought to be contended by the revenue, (to the date of the seizure), the prejudice caused to the third party, who would be drawn into proceedings as it were unwittingly (and in many cases have no concern with it at all), is dis-proportionate. For instance, if the papers are in fact assigned under Section 153-C after a period of four years, the third party assessee's prejudice is writ large as it would have to virtually preserve the records for at latest 10 years which is not the requirement in law. Suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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