APF Estates Private Limited , Hyderabad V. Asst. Commissioner of Income Tax, Central Circle-3, Hyderabad

ITA 408/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7069 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2009-2010
• Appeal Filed On: 22-07-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DANDA SRINIVAS
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Document seized; Documents seized
• Section: 143(3); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 4 08 /HYD/20 20 (ASSESSMENT YEAR : 20 09 - 10 ) M/S. APF ESTATES PRIVATE LIMITED , HYDERABAD. PAN AAHCA 1896J ..APPELLANT. VS. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3 , HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI P. MURALI MOHANA RAO . RESPONDENT BY : SHRI DANDA SRINIVAS (D.R.) DATE OF HEARING : 2 0 .07. 2021. DATE OF PRONOUNCEMENT : 24 .0 8 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 20 09 - 10 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 6 , HYDERABAD S ORDER DT. 02.12.2019 PASSED IN CASE NO. 10104/2019 - 20/A2/CIT(A) - 6 IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 153C OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 408 /HYD/2020 HEARD BOTH THE PARTIES . C ASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT THE ASSESSEE'S FIRST AND FOREMOST GRIEVANCE IN GROUND NOS.3 TO 5 CHALLENG E CORRECTNESS OF INITIATION OF SECTION 153C PROCEEDINGS IN FURTHERANCE TO THE DEPARTMENT S SEARCH ACTION DT.11.03.2010. THE SOL E ISSUE THAT ARISES FOR OUR APT ADJUDICATION AT THIS STAGE THEREFORE IS AS TO WHETHER THE LEARNED LOWER AUTHORITIES HAVE RECORDED A PROPER APROPOS SATISFACTION U/S. 153C OF THE ACT OR NOT. W E NOTICE FROM A PERUSAL OF THE CORRESPONDING ASSESSMENT ORDER (S) SHEET AT PAGE 41 IN THE PAPER BOOK THAT THE ASSESSING OFFICER HAD NOWHERE MADE IT CLEAR AS TO WHETHER THE CORRESPONDING INCRIMINATING MATERIAL FOUND OR SEIZED DURING THE COURSE OF SEARCH BELONG TO THE ASSESSEE OR NOT. WE MAKE IT CLEAR THAT THE IMPUGNED S ATISFACTION HA D BEEN RECORDED WELL BEFORE THE LEGISLATIVE AMENDMENT IN SECTION 153C PROVIDING FINANCE ACT, 2015 W.E.F. 1.6.2015. WE FURTHER DEEM IT APPROPRIATE TO REPRODUCE THE ASSESSING OFFICERS SATISFACTION NOTE AS UNDER : 3 ITA NO. 408 /HYD/2020 SEARCH & SEIZURE OPERATI ONS WERE CONDUCTED IN THE MBS JEWELERS PVT. LTD. GROUP OF CASES ON 11.03.2010. DURING THE COURSE OF SEARCH, BOOKS OF ACCOUNTS, DOCUMENTS & OTHER LOOSE SHEETS WERE FOUND AND SEIZED. AS PER THE SEIZED DOCUMENTS, PAGES 101 TO 117 OF ANNEXURE AHBSPL/PJT/2 RE LATES TO M/S. APF ESTATES PVT. LTD. PROCEEDINGS U/S.153C IS INITIATED. 3. FACED WITH THIS SITUATION AND ON ACCOUNT OF THE FACT THAT NO REBUTTAL TO THE FOREGOING CLINCHING SATISFACTION NOTE HAS COME FROM THE REVENUE SIDE, WE ADOPT STRICTER INSTRUCTI ON AS PER HON'BLE APEX COURT LARGER BENCH DECISION IN COMMISSIONER OF CUSTOMS VS. DILIP KUMAR & CO. (2018) 9 SCC 1 (SC) AND QUASH THE IMPUGNED ASSESSMENT FRAMED U/S. 153C OF THE ACT. ALL OTHER PLEADINGS ON MERITS ARE RENDERED ACADEMIC. 4. THIS ASSESSEE'S APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 24TH AUG. , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 24. 0 8 .2021. * REDDY GP 4 ITA NO. 408 /HYD/2020 COPY TO : 1. M/S. APF ESTATES PVT. LTD., 8 - 2 - 616/B/34, ROAD NO.11, BANJARA HILLS, HYDERABAD. 2. ACIT, CENTRAL CIRCLE 3 , HYDERABAD. 3. PR. C I T ( CENTRAL) , HYDERABAD. 4. CIT(APPEALS) - 6 , HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.