DCIT Vs Blueline Foods (India) Pvt. Ltd (ITAT Bangalore)
Revenue had filed appeals against CIT(A)’s decision holding that assessments framed u/s 153A on Blueline Foods (India) Pvt. Ltd., Mangaluru were invalid, as no valid search was carried out against the company.
Background
A search action dated 23.01.2019 was undertaken at the residences of three directors of Blueline. Simultaneously, a survey u/s 133A was conducted at the registered office & factory premises of the company. AO, however, issued notice u/s 153A to the company and framed assessments for AYs 2017-18 & 2018-19.
CIT(A) quashed the assessments holding that the precondition for 153A- initiation of search u/s 132 – was not satisfied, since only a survey was conducted in the company’s own case.
Difference of Opinion in Tribunal
Vice President (Judicial Member): Held that there was no valid search u/s 132 against the assessee company. Mere mention of the company’s name in the warrant (executed at directors’ residences) was insufficient. Panchanamas were drawn only in directors’ names, not in the company’s. Thus, 153A notice was invalid.
Accountant Member: Took the view that since warrants mentioned the company’s name, searches at directors’ premises constituted a valid search in the company’s case.
Matter was referred to a Third Member (Vice President Shri Mahavir Singh).
