Dy.CIT, Central Circle-7, Hyderabad V. M/s Midwest Gold Limited, Hyderabad

ITA 1062/HYD/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7737 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 27-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Search and seizure; Documents seized
• Section: 143(3); 153A; 132; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO. A.Y. APPELLANT RESPONDENT 1062/H/2014 2003-2004 DCIT, CENTRAL CIRCLE-7, HYDERABAD. M/S. MIDWEST GOLD LTD., HYDERABAD. PAN AAACN4898C 1063/H/2014 2006-2007 1064/H/2014 2007-2008 ITA.NO. A.Y. APPELLANT RESPONDENT 1288/H/2014 2003-2004 M/S. MIDWEST GOLD LTD., HYDERABAD. PAN AAACN4898C DCIT, CENTRAL CIRCLE-7, HYDERABAD. 1289/H/2014 2004-2005 1290/H/2014 2005-2006 1291/H/2014 2006-2007 1292/H/2014 2007-2008 1293/H/2014 2008-2009 FOR REVENUE : MR. RAJAT MITRA FOR ASSESSEE : MR. P. MURALIMOHAN RAO DATE OF HEARING : 01.12.2014 DATE OF PRONOUNCEMENT : .12.2014 ORDER PER BENCH : CROSS-APPEALS ARE BY REVENUE AND ASSESSEE FOR A.YS. 2003-04, 2006-07 AND 2007-08 WHEREAS, ASSESSE E ALSO PREFERRED APPEALS FOR A.YS 2004-05, 2005-06, 2007-0 8 AND 2008-09. EVEN THOUGH, LD. CIT(A) PASSED ORDERS IN A LL THE 2 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. YEARS FROM A.Y. 2003-04 TO A.Y. 2008-09, REVENUE HA S NOT PREFERRED APPEALS IN THE INTERVENING YEARS. ASSESSE E, HOWEVER, PREFERRED APPEALS IN ALL THE YEARS. SINCE, THESE AR E ON THE SAME ISSUE, THESE APPEALS ARE HEARD TOGETHER AND DECIDED BY THIS COMMON ORDER. 2. BRIEFLY STATED, ASSESSEE IS IN THE BUSINESS OF MANUFACTURE OF POLISHED GRANITES, MARBLE SLABS AND TILES. IT IS AN ASSOCIATED COMPANY OF MIDWEST GRANITE P. LTD., W HICH WAS SUBJECTED TO SEARCH PROCEEDINGS ON 24.07.2008. THER E WERE CERTAIN INCRIMINATING DOCUMENTS SEIZED IN THAT CASE . HOWEVER, NOTICES UNDER SECTION 153C WERE ISSUED FOR SIX ASSE SSMENT YEARS IN ASSESSEES CASE. IN THE CONSEQUENTIAL PROC EEDINGS, A.O. DISALLOWED ITEMS WHICH ARE CLAIMED IN THE P & L ACCOUNT LIKE CONTRIBUTION TO P.F. PRIOR PERIOD EXPENSES, BA D DEBTS WRITTEN OFF ETC., AND MADE ADDITIONS. ASSESSEE INTE R ALIA, CONTESTED THE ISSUE OF JURISDICTION BEFORE THE LD. CIT(A) APART FROM CONTESTING VARIOUS ADDITIONS MADE. IT WAS THE CONTENTION OF ASSESSEE THAT ONCE ASSESSMENT ORDER HAS BEEN PAS SED UNDER SECTION 143(3), WITHOUT THERE BEING ANY INCRIMINATI NG INFORMATION OR MATERIAL, PROCEEDINGS UNDER SECTION 153C CANNOT BE INITIATED AND FURTHER ISSUES WHICH ARE A LREADY SETTLED IN EARLIER ASSESSMENT PROCEEDINGS CAN NOT B E RE- AGITATED OR DISALLOWED. ASSESSEE RELIED ON THE DECI SION OF ITAT SPECIAL BENCH IN THE CASE OF ALL CARGO GLOBAL LOGIS TICS LTD., VS. DCIT (2012) 137 ITD 287 (MUM.) (SB). IT WAS FURTHER SUBMITTED THAT A.O. OUGHT TO HAVE APPRECIATED THE F ACT THAT NO INCRIMINATING MATERIAL/SEIZED MATERIAL WAS FOUND DU RING THE COURSE OF SEARCH IN ORDER TO MAKE ADDITIONS TO THE RETURNED INCOME. LD. CIT(A) PERUSING THE SUBMISSIONS OF ASSE SSEE, JUDICIAL PRINCIPLES AND ALSO THE FACT THAT NO INCRI MINATING 3 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. MATERIAL HAS BEEN FOUND, HAS UPHELD THE CONTENTION OF ASSESSEE AND HELD THAT A.O. IS NOT JUSTIFIED IN MAK ING VARIOUS ADDITIONS. HIS DETAILED ORDER IN AY 2003-04 FROM PA RA 4.5 ONWARDS IS AS UNDER : 4.5. PERUSED THE SUBMISSIONS OF THE APPELLANT, WI TH SPECIFIC REFERENCE TO THE ISSUES RAISED THROUGH ADDITIONAL GROUNDS, WHICH WAS MAINLY RELIED UPON TH E JUDICIAL DECISIONS, MORE PARTICULARLY IN THE CASE O F ALL CARGO GLOBAL LOGISTICS PVT. LTD., BY SPECIAL BENCH OF MUMBAI ITAT REPORTED IN 137 ITD 287. BEFORE GETTING INTO THE JUDICIAL DECISION, IT IS PERTINENT TO LOOK INTO THE RELEVANT LAW ON THIS ISSUE, WHICH IS SECTION 153C A S APPLICABLE TO THE FACTS OF THE CASE WHERE SEARCH WA S CONDUCTED IN THE CASE OF M/S. MIDWEST GRANITES PVT. LTD AND BASED ON CERTAIN FINDINGS, PROCEEDINGS U/S. 153 C INITIATED IN THIS CASE. 153C. ASSESSMENT OF INCOME OF ANY OTHER PERSON. [1] NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 139, SECTION 147, SECTION 148, SECTION 149, SECTION 151 AND SECTION 153, WHERE THE ASSESSING OFFICER IS SATISFI ED THAT ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ART ICLE OR THING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERSON OTHER T HAN THE PERSON REFERRED TO IN SECTION 153A, THEN THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIO NED SHALL BE HANDED OVER TO THE ASSESSING OFFICER HAVIN G JURISDICTION OVER SUCH OTHER PERSON AND THAT ASSESS ING OFFICER SHALL PROCEED AGAINST EACH SUCH OTHER PERSO N AND ISSUE SUCH OTHER PERSON NOTICE AND ASSESS OR REASSE SS INCOME OF SUCH OTHER PERSON IN ACCORDANCE WITH THE PROVISIONS OF SECTION 153 A.] [PROVIDED THAT IN CASE OF SUCH OTHER PERSON, THE RE FERENCE TO THE DATE OF INITIATION OF THE SEARCH UNDER SECTION 132 OR MAKING OF REQUISITION UNDER SECTION 132A IN THE SEC OND 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 REQUISITIO NED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON.] 4 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. [PROVIDED FURTHER THAT THE CENTRAL GOVERNMENT MAY B Y RULES MADE BY IT AND PUBLISHED IN THE OFFICIAL GAZETTE, S PECIFY THE CLASS OR CLASSES OF CASES IN RESPECT OF SUCH OT HER PERSON, IN WHICH THE ASSESSING OFFICER SHALL NOT BE REQUIRED TO ISSUE NOTICE FOR ASSESSING OR REASSESSING THE TO TAL INCOME FOR SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WH ICH SEARCH IS CONDUCTED OR REQUISITION IS MADE EXCEPT I N CASES WHERE ANY ASSESSMENT OR REASSESSMENT HAS ABATED.] [(2) WHERE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED AS REFERRED TO IN SUB-SECTI ON (1) HAS OR HAVE BEEN RECEIVED BY THE ASSESSING OFFICER HAVI NG JURISDICTION OVER SUCH OTHER PERSON AFTER THE DUE D ATE FOR FURNISHING THE RETURN OF INCOME FOR THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SEARCH IS CO NDUCTED UNDER SECTION 132 OR REQUISITION IS MADE UNDER SECT ION 132A AND IN RESPECT OF SUCH ASSESSMENT YEAR (A) NO RETURN OF INCOME HAS BEEN FURNISHED BY SUCH OTHER PERSON AND NO NOTICE UNDER SUB-SECTION (1) OF SECTION 142 HAS BEEN ISSUED TO HIM, OR (B) A RETURN OF INCOME HAS BEEN FURNISHED BY SUCH OTHER PERSON BUT NO NOTICE UNDER SUB-SECTION (2) OF SECTION 143 HAS BEEN SERVED AND LIMITATION OF SERVING THE N OTICE UNDER SUB-SECTION (2) OF SECTION 143 HAS EXPIRED, O R (C) ASSESSMENT OR REASSESSMENT, IF ANY, HAS BEEN MA DE, BEFORE THE DATE OF RECEIVING THE BOOKS OF ACCOUNT O R DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON, SUCH ASSESSING OFFICER SHALL ISSUE THE NOTI CE AND ASSESS OR REASSESS TOTAL INCOME OF SUCH OTHER PERSO N OF SUCH ASSESSMENT YEAR IN THE MANNER PROVIDED IN SECT ION 153A.] 4.6. AS COULD BE SEEN FROM THE LANGUAGE USE D, THE BASIS FOR INITIATION OF PROCEEDINGS U/S. 153C IS TH E INFORMATION/VALUABLES/DOCUMENTS SEIZED BELONGING TO PERSONS OTHER THAN COVERED U/S. 153A. AS COULD BE S EEN FROM THE ASSESSMENT ORDER UNDER REFERENCE, THERE IS NO INDICATION AS TO THE INFORMATION ON THE VALUABLES/ DOCUMENTS SEIZED DURING FROM THE SEARCH PROCEEDINGS CONDUCTED IN THE CASE OF M/S. MIDWEST GRANITES (P) LTD(MGPL), AND IT'S DIRECTORS, AND NO SUCH VALUABLE S OR DOCUMENTS RELATABLE/BELONG TO THE ASSESSEE. AS COUL D BE 5 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. SEEN FROM THE ASSESSMENT ORDER, NO ADDITION WAS MAD E BASED ON THE INCRIMINATING MATERIAL FOUND DURING TH E COURSE OF SEARCH PROCEEDINGS CONDUCTED IN CASE OF M GPL , WHICH IS AN ASSOCIATE CONCERN OF THE ASSESSEE COMPA NY. THERE ARE CATENA OF JUDICIAL DECISIONS WHEREIN IT H AS BEEN HELD THAT ADDITIONS MADE IN COURSE OF ASSESSMENT PROCEEDINGS U/S. 153A SHOULD BE DERIVED FROM THE INCRIMINATING MATERIAL FOUND DURING THE COURSE OF S EARCH. THE ASSESSMENT PROCEEDINGS U/S. 153C ARE ALSO CONSIDERED AS PROCEEDINGS U/S. 153A, SINCE 153C IS READ WITH SEC. 153A. 4.7 (I) IN THE CASE OF LMJ INTERNATIONAL LTD., HON 'BLE ITAT KOLKATA, OBSERVED THAT THE ITEMS OF REGULAR AD DITIONS CANNOT BE TAKEN UP IN THE ASSESSMENT U/S. 153A/153C . THE HEAD NOTE IN THE CASE READ AS UNDER: 'SECTION 153C, READ WITH SECTION 153A, OF THE INCOME- TAX ACT, 1961, SEARCH AND SEIZURE - ASSESSMENT OF INCOME OF ANY OTHER PERSON - ASSESSMENT YEAR 1999-0 0 - WHETHER ITEMS OF REGULAR ASSESSMENT CAN BE ADDED BACK IN PROCEEDINGS UNDER SECTION 153C - HELD, NO - WHETHER ONLY UNDISCLOSED INCOME DETECTED IN COURSE OF SEARCH OF SEARCHED PERSON OR ANY OTHER PERSON CAN B E ADDED AND CHARGED TO TAX UNDER SECTION 153C - HELD, YES.' WHILE DECIDING THE ISSUE THE HON'BLE TRIBUNAL REFER RED TO THE DECISION OF HON'BLE HIGH COURT OF JHARKHAND IN THE CASE OF ABHAY KUMAR SHROFF VS. CIT (290 ITR 114) (II) IN THE CASE OF KG EXPORTS VS. JCIT (ITA NO. 494/V/2007), HON'BLE ITAT, WAS OF THE VIEW THAT ONL Y UNDISCLOSED INCOME CAN BE ASSESSED U/S. 153A OF THE INCOME-TAX ACT. THE RELEVANT PORTION OF THE ORDER R UN AS UNDER: 'IN VIEW OF THE FOREGOING, WE ARE OF THE OPINION TH AT WHEN NO INCRIMINATING MATERIAL IS FOUND DURING THE COURSE OF SEARCH, THE ASSESSING OFFICER CANNOT MAKE ANY ADDITION ON ISSUES WHICH HAVE ALREADY BEEN CONCLUDED EVEN WHEN THE ASSESSMENTS WERE REOPENED BY VIRTUE OF PROVISIONS OF SEC. 153A. IN SUCH CASES , THE ASSESSING OFFICER HAS TO COMPLETE SUCH ASSESSMENTS WITHOUT MAKING ANY FURTHER ADDITION. HENCE, THE SECOND ISSUE URGED BEFORE US IS ANSWERED IN FAVOUR OF THE ASSESSEE.' 6 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. (III) A SIMILAR VIEW WAS TAKEN BY THE HON'BLE ITAT, HYDERABAD, IN THE CASE OF PLATINA PROPERTIES PROJEC TS LTD IN ITA NO. 1622, 1623, 573 TO 576/HYD/2008. THE RELEVANT PORTION OF THE ORDER RUNS AS UNDER: ' .... THE PRESENT ASSESSMENT IS MADE U/S. 143(3) R.W.S. 153A R.W.S. 153C OF THE ACT. THE SECOND PROV ISO OF SUB SECTION 1 TO SECTION 153A PROVIDES THAT IF ASSESSMENT FOR ANY OF THE ASSESSMENT YEAR FALLING WITHIN A PERIOD OF 6 YEARS MENTIONED IN CLAUSE (B) OF SECTION 153A(1) IS PENDING ON THE DATE OF SEARCH, I T SHALL ABATE. THE PRESENT ASSESSMENT YEAR IS 1999- 2000 WHICH IS FALLING WITHIN THE PERIOD OF 6 YEARS BUT ITS ASSESSMENT IS COMPLETE AND HENCE THE PROCEEDING S DO NOT ABATE. IN OTHER WORDS THE ORIGINAL ASSESSMEN T WAS MADE U/S. 143(3) HAS BECOME FINAL AND IS NOT AFFECTED BY THE SECOND PROVISO TO SECTION 153A. OF COURSE, THE PRESENT ASSESSMENT IS A CASE FALLING U/ S. 153C, BUT THEN, AS PER SUB SECTION (2) OF SECTION 153C, THIS ASSESSMENT WAS ALSO TO BE DONE IN THE MANNER PROVIDED IN SECTION 153A. THEREFORE, THE SECOND PROVISO TO SECTION 153A APPLIES EQUALLY TO T HE CASES FALLING U/S. 153C. WHAT FOLLOWS IS THAT THE ASSESSMENT NOW TO BE DONE IS TO BE CONFINED TO THE MATERIAL FOUND IN THE COURSE OF SEARCH ONLY. THE ADDITIONS/DISALLOWANCES MADE IN THE REGULAR ASSESSMENT CANNOT BE REPEATED IN THE ASSESSMENT TO BE MADE U/S. 153C OF THE ACT UNLESS FRESH MATERIAL HAS BEEN UNEARTHED IN COURSE OF SEARCH IN RESPECT O F THOSE ADDITIONS/DISALLOWANCES. (IV) HON'BLE SPECIAL BENCH OF ITAT, MUMBAI, IN THE CASE OF ALL CARGO GLOBAL LOGISTICS (137 ITD 287 ), WHILE DEALING ON THE ISSUE MORE ELABORATELY, HAS CATEGORICALLY HELD THAT ADDITIONS TO THE INCOME THA T HAS ALREADY BEEN ASSESSED, THE ASSESSMENT U/S. 153A WIL L BE MADE ON THE BASIS OF INCRIMINATING MATERIAL. THE ESSENTIAL OBSERVATIONS OF THE ORDER RUN AS UNDER: 'IN ASSESSMENTS THAT ARE ABATED, THE AO RETAINS THE ORIGINAL JURISDICTION AS WELL AS JURISDICTION CONFE RRED ON HIM U/S. 153A FOR WHICH ASSESSMENTS SHALL BE MADE FOR EACH OF THE SIX ASSESSMENT YEARS SEPARATELY; 7 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. (B) IN OTHER CASES, IN ADDITION TO THE INCOME THAT HAS ALREADY BEEN ASSESSED, THE ASSESSMENT U/S. 153A WILL BE MADE ON THE BASIS OF INCRIMINATING MATERIAL , WHICH IN THE CONTEXT OF RELEVANT PROVISIONS MEANS - (I) BOOKS OF ACCOUNT, OTHER DOCUMENTS, FOUND IN THE COURSE OF SEARCH BUT NOT PRODUCED IN THE COURSE OF ORIGINAL ASSESSMENT, AND (II) UNDISCLOSED INCOME OR PROPERTY DISCOVERED IN THE COURSE OF SEARCH.' 4.8 FURTHER, ON THE SAID ISSUE SIMILAR VIEWS WERE ECHOED FROM THE FOLLOWING DECISIONS OF VARIOUS TRIB UNALS AND HIGH COURTS. (I) JAI STEELS (P) LTD. VS. CIT (88 ITR 1 (RAJ.) (2 013) (II) ACIT VS. PRATHIBHA INDUSTRIES ( 28 TAXMN.COM 246 ITAT, BOM) IN THE CASE OF ACIT VS. PRATHIBHA INDUSTRIES LTD. (SUPRA), THE DECISION OF SPECIAL BENCH, BOMBAY, IN THE CASE OF ALL CARGO GLOBAL LOGISTICS LTD WAS FOLLOWED , AND IT HAS BEEN HELD THAT IN CASES WHERE ASSESSMENTS AR E COMPLETED OR TIME LIMIT FOR ISSUE OF NOTICES U/S. 1 43(3) HAVE EXPIRED AND NO INCRIMINATING MATERIAL HAS BEEN FOUND, THE ASSESSMENTS HAVE TO BE COMPLETED AT NIL INCOME. THIS VIEW WAS ALSO ENTERTAINED IN THE CASE OF MR. VIKRAM KHANDELWAL VS. DCIT (ITA NO. 1976, 1977 AND 3896/MUM/2009 ORDER DTD. 18.3.2013.) IN THE CASE OF JAI STEELS (P) LTD VS. CIT (SUPRA), IT HAS BEEN HELD THAT, IT IS NOT OPEN FOR ASSESSEE TO SEEK DEDUCTION OR CLAIM EXPENDITURE WHICH HAS NOT BEEN CLAIMED IN ORIGINAL ASSESSMENT, WHICH ALREADY STAND S COMPLETED ONLY BECAUSE AN ASSESSMENT UNDER SECTION 153A/153C OF THE ACT, IN PURSUANCE OF SEARCH OR REQUISITION, IS REQUIRED TO BE MADE. VIDE THE ABOVE DISCUSSION AND DECIDED CASE LAWS, IT HAS BEEN DECIDED THAT JURISDICTION IN SEARCH CAS ES IS TWO WAY; I) ONE IN CASE OF CONCLUDED ASSESSMENT, WHETHER UNDER SECTION 143(3) OR 143( 1), WHERE DATE OF ISSUE OF NOTICE U/S. 143(2) HAS EXPIRED AND II) THE OTHER IN RESPECT OF PENDING ASSESSMENT WHICH ABATES CONSEQUENT TO SEARCH. IN CASE OF THE FORMER, THE 8 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. JURISDICTION TO ASSESS IS LIMITED TO INCRIMINATING MATERIAL AND IN OTHER CASES THE ASSESSING OFFICER H AS UNFETTERED JURISDICTION TO MAKE ASSESSMENT BOTH BY EXERCISING HIS NORMAL JURISDICTION TO MAKE ASSESSMENT BOTH BY EXERCISING HIS NORMAL JURISDICTION AND ALSO BY UTILISING THE INCRIMINATING MATERIAL/EVIDENCE. 4.9. COMING TO THE FACTS OF THE CASE, THE ASSESSMENTS FOR THE ASSESSMENT YEARS 2003-04, 2004-05, 2005-06, 2006-07, 07-08 AND 2008-09 WERE UNABATED AND TREATED TO HAVE BEEN CONCLUDED. IT IS ALSO EVIDENT FROM THE ASSESSMENT ORDERS THAT ASSESSING OFFICER HAS NOT SPECIFICALLY POINTED TO ANY AVAILABILITY OF SEIZED/ INCRIMINATING MATERIAL RELATED TO THE ASSESSEE FOUN D DURING THE SEARCH PROCEEDINGS CONDUCTED IN CASE OF MGPL OR THE DIRECTORS OF THE GROUP COMPANIES. THERE IS NO SPECI FIC REFERENCE TO ANY MATERIAL OR VALUABLES THAT ARE REL ATABLE TO THE ASSESSEE AND HAVE BECOME THE BASIS FOR MAKING T HE ADDITIONS OR DISALLOWANCES, AND PROMPT THE ASSESSIN G OFFICER TO RE-AGITATE THE ISSUES WHICH WERE OTHERWI SE SETTLED IN THE UNABATED ASSESSMENTS. THUS, CONSIDERING THE LEGAL ADDITIONAL GROUND RAISED BY THE APPELLANT, IT IS REASONABLE TO HOLD THAT THE VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDERS F OR THE ASST. YEAR 2003- 04 IS NOT JUSTIFIED AND ARE DIRECTED TO BE DELETED. SINCE, THE ADDITIONAL GROUN D RAISED ON LEGAL ISSUE HAS BEEN DECIDED IN FAVOUR OF THE APPELLANT, IT IS REASONABLE TO HOLD THAT IT IS NOT NECESSARY TO ADJUDICATE ON THE VARIOUS ADDITIONS MADE IN ASSESSMENT ORDER, ON MERIT. 3. SIMILAR ORDERS ARE PASSED IN ALL OTHER YEARS. REVENUE IS AGGRIEVED ON THE ABOVE AND RAISED THE FO LLOWING GROUNDS. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) ERRED IN DELETING THE ADDITIONS BY FOLLOWING THE RATIO LAID DOWN IN THE CASE OF ALL CA RGO GLOBAL LOGISTICS 137 ITD 287 WITHOUT GOING INTO THE MERITS OF THE ISSUES. 2. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE A.O. BE RESTORED. 9 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. 4. AFTER CONSIDERING THE RIVAL CONTENT IONS, WE DO NOT SEE ANY REASON TO DIFFER FROM THE ORDER OF LD. CIT( A). CLEARLY, THERE IS NO INCRIMINATING MATERIAL FOUND IN THE COU RSE OF SEARCH. AS PER PROVISIONS OF SECTION 153C, THE PROC EEDINGS CAN BE INITIATED ONLY WHERE THE A.O. IS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THI NG OR BOOKS OF ACCOUNTS OR DOCUMENTS SEIZED OR ACQUISITIONED BELON GING TO A PERSON OTHER THAN THE PERSON REFERRED IN SECTION 15 3A (I.E., PERSON SEARCHED), THEN THE PROCEEDINGS CAN BE INITI ATED ON OTHER PERSON. AS THERE IS ALREADY FINDING THAT NO I NCRIMINATING MATERIAL HAD BEEN FOUND PERTAINING TO ASSESSEE, VER Y ISSUANCE OF NOTICE UNDER SECTION 153C ITSELF IS BAD. THEREFO RE, THE CONSEQUENTIAL PROCEEDINGS ALSO BECOME BAD IN LAW. ACCORDINGLY, FOLLOWING THE COORDINATE BENCH DECISIO NS ON THE ISSUE AS RELIED UPON BY LD. CIT(A) IN HIS ORDER AND ALSO TAKING SUPPORT FROM SPECIAL BENCH (HOWEVER, GIVEN IN THE C ONTEXT OF SECTION 153A WHICH MAY NOT DIRECTLY APPLY TO THE PR OCEEDINGS UNDER SECTION 153C), WE ARE OF THE OPINION THAT THE RE IS NO MERIT IN REVENUE CONTENTION. ACCORDINGLY, ALL THE G ROUNDS RAISED BY REVENUE IN THREE YEARS ARE DISMISSED. 5. AS FAR AS ASSESSEES APPEALS ARE CONCERNED, EVE N THOUGH ALL THE PROCEEDINGS ARE HELD TO BE BAD IN LA W BY LD. CIT(A), ASSESSEE IS CONTESTING THAT THE ISSUE SHOUL D HAVE BEEN DECIDED ON MERITS. AS CAN BE SEEN FROM THE ABOVE FA CTS, SINCE THE PROCEEDINGS UNDER SECTION 153C ARE HELD TO BAD IN LAW BY LD. CIT(A) AND AS WE HAVE UPHELD THE ORDERS IN ALL THE YEARS IN WHICH REVENUE HAS CONTESTED, THERE IS NO NEED TO AD JUDICATE THE ISSUES ON MERITS. MOREOVER, REVENUE HAS NOT COM E IN APPEAL FOR THE INTERVENING YEARS I.E., A.YS. 2004-0 5, 2005-06 AND 2008-09. IN THESE YEARS ALSO THE ISSUE OF JURIS DICTION TO 10 ITA.NO.1062 TO 1064/H/2014 & 1288 TO 1293/H/2014 M/S. MIDWEST GOLD LIMITED, HYDERABAD. PROCEED U/S 153C HAS ALREADY BEEN DECIDED IN FAVOUR OF ASSESSEE AS THE PROCEEDINGS ITSELF ARE HELD TO BE B AD IN LAW. IN VIEW OF THIS, THERE IS NO NEED TO ADJUDICATE THE IS SUES ON MERITS, IN THESE YEARS AS WELL. ASSESSEES APPEALS ARE CONSIDERED ACADEMIC IN NATURE AND DISPOSED OF ACCOR DINGLY. ALL THE APPEALS OF ASSESSEE ARE DISMISSED. 6. IN THE RESULT, APPEALS OF REVENUE AND ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10.12.2014. SD/- SD/- (SAKTIJIT DEY) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 10 TH DECEMBER, 2014 VBP/- COPY TO 1. DCIT, CENTRAL CIRCLE-7, 8 TH FLOOR, AAYAKAR BHAVAN, L.B. STADIUM ROAD, BASHEERBAGH, HYDERABAD 500004. 2. M/S. MIDWEST GOLD LIMITED, 8-2-684/3/25 & 26, RO AD NO.12, BANJARA HILLS, HYDERABAD. 3. CIT(A)-VI, HYDERABAD. 4. CIT-(CENTRAL), HYDERABAD 5. D.R. ITAT B BENCH, HYDERABAD.