P Venkateshwar Rao, Hyderabad V. DCIT, Central Circle - 5, Hyderabad

ITA 397/HYD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6324 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-07-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 10-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.397/HYD/2014 ASSESSMENT YEAR 2007-2008 MR. P. VENKATESWARA RAO HYDERABAD. PAN AEJPP5631D VS., THE DCIT, CENTRAL CIRCLE-5, HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. K.C. DEVDAS FOR REVENUE : MR. K.J. RAO DATE OF HEARING : 13.07.2016 DATE OF PRONOUNCEMENT : .072016 ORDER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y. 2007-08. TH E ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) READ WITH SECTION 153C OF THE I.T. ACT, 1961. THE ASSESSEE HAD FILED ORIGINAL GROUNDS OF APPEAL AGAINST THE ADDITIONS MADE BY THE A.O. AN D CONFIRMED BY THE CIT(A) AND ADDITIONAL GROUNDS OF APPEAL CHALLEN GING THE VALIDITY OF THE PROCEEDINGS UNDER SECTION 143(3) READ WITH S ECTION 153C OF THE I.T. ACT ON THE GROUND THAT THE SATISFACTION RE QUIRED TO INITIATE PROCEEDINGS UNDER SECTION 153C OF THE ACT HAS NOT B EEN RECORDED BY THE A.O. OF THE SEARCHED PERSON VIZ., MR. V. ANA ND PRASAD AND 2 ITA.NO.397/HYD/2014 MR. P. VENKATESWARA RAO, HYDERABAD. OTHERS AND THEREFORE, THE ASSESSMENT IN THE CASE OF THE ASSESSEE IS INVALID. THE SAID ADDITIONAL GROUND WAS ADMITTED AS IT WAS A LEGAL GROUND AND ALL THE RELEVANT FACTS WERE ALREADY ON R ECORD. 2. THE LD. D.R. WAS DIRECTED TO GET INSTRUCTIONS F ROM THE A.O. AND HAS ACCORDINGLY FILED A LETTER DATED 27 TH MAY, 2016 BEFORE US STATING THAT ON PERUSAL OF THE CASE RECORDS, IT IS FOUND THAT THERE IS NO SATISFACTION REQUIRED UNDER SECTION 153C OF T HE ACT FOUND IN THE RECORD FOR THE A.Y. 2007-08. 3. TAKING THE ABOVE INTO CONSIDERATION, WE HOLD TH AT THE ASSESSMENT MADE IN THE CASE OF THE ASSESSEE IS VOID ABINITIO . THE REQUIREMENT OF LAW IS THAT THE A.O. OF THE PERSON S EARCHED SHOULD RECORD SATISFACTION THAT THE INCOME RELATING TO THE INCRIMINATING MATERIAL PERTAINS TO THE OTHER PERSON I.E., THE ASS ESSEE HEREIN AND THEREAFTER WOULD THE A.O. OF THE ASSESSEE GET JURIS DICTION TO INITIATE ASSESSMENT PROCEEDINGS UNDER SECTION 143(3) READ WI TH SECTION 153C OF THE I.T. ACT, 1961. IN VIEW OF THE ABOVE LE TTER OF THE A.O. OF THE ASSESSEE, THE ASSESSMENT IS CLEARLY WITHOUT JUR ISDICTION. IN VIEW OF THE SAME, THE ASSESSEES ADDITIONAL GROUND OF AP PEAL IS ALLOWED AND THE ASSESSMENT ORDER IS QUASHED. IN CONSEQUENT THERETO, THE OTHER GROUNDS OF THE ASSESSEE NEEDS NO ADJUDICATION . 4. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. 3 ITA.NO.397/HYD/2014 MR. P. VENKATESWARA RAO, HYDERABAD. ORDER PRONOUNCED IN THE OPEN COURT ON 29.07. 2016. SD/- SD/- (S. RIFAUR RAHMAN) (SMT. P. MADHAVI DEVI ) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 29 TH JULY, 2016 VBP/- COPY TO : 1. MR. P. VENKATESWARA RAO, FLAT NO.402, H.NO.6-2-10 , TEMPLE VIEW RESIDENCY, LAKADIKAPOOL, HYDERABAD. 2. THE DCIT, CENTRAL CIRCLE-5, HYDERABAD. 3. CIT(A)-VII, HYDERABAD. 4. CIT (CENTRAL), HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE