Case Law Details
Shri Jagjit Singh Vs ACIT (ITAT Delhi)
The issue under consideration is whether the assessment order passed by the assessing officer under section 153C is bad in law and void ab-initio?
ITAT states that, when the assessment or reassessment, as the case may be, has been made u/s 153C, the necessary requirements to proceed with such initiation of assessment proceedings must be fulfilled. But, in the instant case, as discussed, the AO has failed to record the satisfaction note as required u/s 153C rather mechanically recorded the satisfaction and made the assessment. The contention raised by the ld. DR and case laws relied upon are not applicable to the facts and circumstances of the case. At the same time, SMS mentioned by the AO of the assessment order found on the mobile phone of Atul Bansal, searched person, are relevant only for AY 2012-13 and not AY 2011-12 as the date of search on the basis of which assessment u/s 153C was initiated on 09.11.2011. Moreover, for AY 2011-12 CIT (A) failed to clarify if any incriminating material was seized for this year. In view of what has been discussed above, ITAT are of the considered view that assessment framed by the assessee u/s 153A r/w section 153C for AYs 2009-10, 2010-11 and 2011-12 is bad in law for want of jurisdictional error with the AO. At the same time, assessment framed u/s 143 (3) for AY 2012-13 is also bad in law because date of handing over the seized document is 20.01.2014 and the assessment in this case was required to be framed u/s 153C of the Act. 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. So, in these circumstances, the assessment framed u/s 143(3) of the Act for AY 2012-13, which was otherwise required to be framed u/s 153C, is also not sustainable in the eyes of law on account of jurisdictional error.
FULL TEXT OF THE ITAT JUDGEMENT
Since common questions of facts and law have been raised in the aforesaid appeals, the same are being disposed off by way of consolidated order to avoid repetition of discussion.
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