Case Law Details
S.P.S. Ahluwalia Vs ACIT (ITAT Delhi)
The issue under consideration is whether the issue of notice u/s 153C instead of section 153A is considered as valid assessment or not?
ITAT states that, the premises of the assessee were searched on 16.12.2003. Consequent thereto, the requirement of law is that in case the premises of the persons have been searched, then the proceedings to be initiated are by way of issue of notice under section 153A of the Act. The AO in such facts and circumstances has to issue, the aforesaid notice under section 153A of the Act and requisition the assessee to furnish the return of income for the captioned assessment years. In case any document relating to person other than the person searched were found, then the notice is to be issued to such other person under section 153A read with section 153C of the Act. In the facts of the present case, the AO for Assessment Years 1998- 99, 1999-2000 & 2001-02 had issued notice dated 7.3.2006 under section 153A read with section 153C of the Act. The initiation of the proceedings thus are under section 153C of the Act i.e. in respect of person other than the person searched, which is not the case. The assessee is the person searched and requirement of law is to issue the notice under section 153A of the Act. The copy of the aforesaid notice have been filed on record and have been perused by us. Though in the assessment order, the AO mentions that the notice had been issued under section 153A of the Act on 7.3.2006, but infact the notice which is issued on 7.3.2006 was the notice under section 153A read with section 153C of the Act. The said notices were invalid and the consequent assessment framed under section 153A of the Act suffers from infirmity, because of lack of jurisdiction invoked by the AO under section 153A of the Act. Consequently, the assessment orders framed in the case are bad in law. ITAT thus cancel the assessment orders passed in the case against the assessee being bad and invalid in law.
FULL TEXT OF THE ITAT JUDGEMENT
This bunch of four appeals filed by the assessee are against separate orders of the CIT(A), all dated 09.03.2012, relating to assessment years 1998-99, 1999-2000, 2001-02 & 2004-05 passed under section 153A of the Act.
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