Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: empanelment :: list of goods taxed at 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
From the Courts »
  Vatsala Shenoy vs. JCIT (Supreme Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 M.K.Overseas Pvt. Ltd. Vs. Pr.Commissioner Of Income Tax-06
 Arshia Ahmed Qureshi Vs. Pr. Commissioner Of Income Tax-21
 CHAUDHARY SKIN TRADING COMPANY Vs. PR. COMMISSIONER OF INCOME TAX-21
  Sushila Devi vs. CIT (Delhi High Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 Deputy Director Of Income Tax Vs. Virage Logic International
 Commissioner Of Income Tax-3 International Taxation Vs. Virage Logic International India
 Pr. Commissioner Of Income Tax-06 Vs. Moderate Leasing And Capital Services Pvt. Ltd.
 ITO vs. Vikram A. Pradhan (ITAT Mumbai)

DCIT, Cent. Circle-18, ARA Centre, E-2, Jhandewalan Extension, New Delhi. Vs. Apoorva Extrusion Pvt. Ltd., 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, GK-1, New Delhi.
October, 10th 2014
           IN THE INCOME TAX APPELLATE TRIBUNAL
                DELHI BENCHES : A : NEW DELHI

 BEFORE SHRI R.S. SYAL, AM AND SHRI GEORGE GEORGE K., JM

                        ITA No.3308/Del/2010
                      Assessment Year : 2002-03


DCIT,                              Vs.   Apoorva Extrusion Pvt. Ltd.,
Cent. Circle-18,                         305, 3rd Floor, Bhanot Corner,
ARA Centre,                              Pamposh Enclave, GK-1,
E-2, Jhandewalan Extension,              New Delhi.
New Delhi.                               PAN : AAACA2120L

                         CO No.303/Del/2010
                       (ITA No.3308/Del/2010)
                     Assessment Year : 2002-03

Apoorva Extrusion Pvt. Ltd.,       Vs.   DCIT,
305, 3rd Floor, Bhanot                   Cent. Circle-18,
Corner,                                  ARA Centre,
Pamposh Enclave, GK-1,                   E-2, Jhandewalan Extension,
New Delhi.                               New Delhi.
PAN : AAACA2120L

  (Appellant)                               (Respondent)

           Assessee By         :    Shri Suresh Anantharaman, CA
           Department By       :    Shri A. Misra, CIT, DR


                                    ORDER

PER R.S. SYAL, AM:

     This appeal by the Revenue and cross objection by the assessee

arise out of the order passed by the CIT(A) on 30.04.2010 in relation

to the assessment year 2002-03.
                                                          ITA No.3308/Del/2010
                                                            CO No.303/Del/2010

3.   The case of the assessee was taken up for scrutiny u/s 153C of

the Act. In response to the notice issued, the assessee filed return of

income for the A.Y. 2002-03 declaring Nil income. The assessee had

paid taxes on `Book profit' of ` 2,68,344/- u/s 115JB.           Eventual

assessment was completed u/s 153C read with section 143(3) of the

Act determining the book profit at the same level of ` 2,68,344/-, but

changing the head of income from `Business income' to `Income from

other sources'. The assessee challenged the assessment order before

the ld. CIT(A) contending, inter alia, that no addition was made by the

AO on the basis of documents seized which formed the basis for

issuing notice u/s 153C of the Act and hence the assessment be

quashed.   The ld. CIT(A) observed that the documents claimed as

belonging to the assessee were not discussed in the assessment

order. Considering certain decisions, the ld. CIT(A) came to hold that

since the documents seized did not belong to the assessee or relate to

the assessment year under consideration, the AO was not justified in

initiating the proceedings u/s 153C read with section 153 of the Act.

He, therefore, set aside the initiation of proceedings u/s 153C of the

Act. In view of his decision that the AO did not have any jurisdiction to

initiate or make assessment u/s 153A read with section 153C, he did

                                    3
                                                        ITA No.3308/Del/2010
                                                          CO No.303/Del/2010




which were found from the premises of the persons searched. When

we peruse these documents, it can be easily noticed that the Bank

books bear the name of the assessee and relate to financial years

starting from 1.4.2004. Pages 31-35 is a print-out of the Trial balance

of the assessee as on 31.3.2004 which was again found from the

premises of the person searched. There is another document on page

No.36 which is a certificate issued by the assessee confirming that it

had given a sum of ` 10 lac to Mr. S.A. Hashmi vide cheque

No.995233 dated 2.6.2004. A close scrutiny of these documents

belonging to the assessee found from the premises of the persons

searched, indicates that these belong to the assessee but pertain to a

period from 1.4.2004.    In other words, these documents relate to

assessment year 2005-06 onwards.       The ld. AR bolstered the view

canvassed by the ld. CIT(A) quashing the initiation of assessment for

the year under consideration by contending that none of the seized

documents relate to the assessment year under consideration. In the

opposition, the ld. DR contended that the assessment was rightly

framed u/s 153C read with section 153A of the Act.


5.   In order to answer whether the quashing of the initiation of

assessment for the year under consideration on the given count is
                                   5
                                                             ITA No.3308/Del/2010
                                                               CO No.303/Del/2010

Since the assessment or reassessment of such other person has to be

done in accordance with the provisions of           section 153A, let us

examine the prescription of the relevant parts of section 153A(1),

which is as under :-

     "Notwithstanding anything contained in section 139, section 147,
     section 148, section 149, section 151 and section 153, in the case of a
     person where a search is initiated under section 132 or books of
     account, other documents or any assets are requisitioned under
     section 132A after the 31st day of May, 2003, the Assessing Officer
     shall--

     (a) issue notice to such person requiring him to furnish within such
     period, as may be specified in the notice, the return of income in
     respect of each assessment year falling within six assessment years
     referred to in clause (b), in the prescribed form and verified in the
     prescribed manner and setting forth such other particulars as may be
     prescribed and the provisions of this Act shall, so far as may be, apply
     accordingly as if such return were a return required to be furnished
     under section 139;

     (b) assess or reassess the total income of six assessment years
     immediately preceding the assessment year relevant to the previous
     year in which such search is conducted or requisition is made:"


7.   On circumspection of the clause (a) of the above provision, it is

amply clear that the AO shall issue notice to such person requiring

him to furnish the return of income in respect of each assessment

year falling within six assessment years as referred to in clause (b)

and, the latter clause, provides that the Assessing Officer shall

`assesss or reassess the total income of six assessment years
                                     7
                                                        ITA No.3308/Del/2010
                                                          CO No.303/Del/2010

material is found. When we read section 153C in a holistic manner, it

becomes evident that the triggering point for assuming jurisdiction on

the person other than the person searched u/s 153C is the finding of

any money, bullion, jewellery or books of account or document from

the person searched. Once any money, bullion, jewllery or books of

account or document seized or requisitioned from the person

searched are found to be belonging to the other person, then, the

assessment or reassessment of such other person is to be necessarily

completed in terms of section 153A, which in no uncertain terms

refers to six assessment years immediately preceding the assessment

year relevant to the previous year in which such search is conducted

or requisition is made. Further, the use of the word `shall' in section

153A immediately before clause (a) has left nothing to doubt that the

assessment is required to be made for all the six assessment years

immediately preceding the assessment year relevant to the previous

year in which such search is conducted or requisition is made. As the

legislature has not made the making of such assessment or

reassessment for all the six assessment years subject to any condition

of finding of any incriminating material or otherwise, we are unable to



                                   9
                                                          ITA No.3308/Del/2010
                                                            CO No.303/Del/2010

on the initiating or making of assessment or reassessment for some of

the years of other person, more so, when section 153C(1) has been

expressly made to accord with the provisions of section 153A. We,

therefore, jettison the contention urged on behalf of the assessee as

sans merit.


9.   In order to support the impugned order, the ld. AR also took

support of sub-section (2) of section 153C to contend that the

assessment of the other person can be made only for such

assessment years for which the money, bullion, jewellery or books of

account or other documents are found and for no other years. This

was countered by the ld. DR.


10. To appreciate this contention raised on behalf of the assessee, it

would be apt to note the prescription of sub-section (2) of section

153C, which runs as under:-

     "(2) Where books of account or documents or assets seized or
     requisitioned as referred to in sub-section (1) has or have been
     received by the Assessing Officer having jurisdiction over such other
     person after the due date for furnishing the return of income for the
     assessment year relevant to the previous year in which search is
     conducted under section 132 or requisition is made under section
     132A and in respect of such assessment year--



                                   11
                                                       ITA No.3308/Del/2010
                                                         CO No.303/Del/2010

assessment year relevant to the previous year in which search is

conducted u/s 132 or requisition is made u/s 132A.' Thus, it is amply

clear that whereas sub-section (2) of section 153C deals with the

assessment for the assessment year relevant to the previous year in

which search is conducted, sub-section (1) of section 153C read with

section 153A refers to `six assessment years immediately preceding

assessment year relevant to the previous year in which such search is

conducted or requisition is made.'     As we are presently concerned

with one of the six assessment years immediately preceding the

assessment year relevant to the previous year in which such search

was conducted, it is the mandate of sub-section (1) of section 153C

read with section 153A which shall apply.





12. Reverting to the facts of the instant case, it is noticed that the

documents found from the persons searched, placed at pages 26-36

of the Departmental paper book, do belong to the assessee. As such,

there can be no question of lack of jurisdiction of the AO to initiate

assessment of the assessee u/s 153C read with section 153A of the

Act for the instant year, which is one of the six assessment years

immediately preceding the assessment year relevant to the previous

year in which search was conducted.         In view of the foregoing
                                  13
                                                          ITA No.3308/Del/2010
                                                            CO No.303/Del/2010

as per law, in consonance with our above directions. Needless to say,

the assessee will be allowed a reasonable opportunity of being heard

in such fresh proceedings.


14. In the result, the appeal of the Revenue is allowed and C.O. of

the assessee is allowed for statistical purposes.


          The order pronounced in the open court on 09.10.2014.

              Sd/-                                      Sd/-

 [GEORGE GEORGE K.]                               [R.S. SYAL]
   JUDICIAL MEMBER                            ACCOUNTANT MEMBER


Dated, 09th October, 2014.

dk

Copy forwarded to:

     1.   Appellant
     2.   Respondent
     3.   CIT
     4.   CIT (A)
     5.   DR, ITAT

                                                    AR, ITAT, NEW DELHI.




          *
                                      15

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions