ACIT, New Delhi V. M/s. Shield Home Pvt. Ltd., New Delhi

ITA 4228/DEL/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6649 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 27-01-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 21-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJIV SHANKAR
• Keywords: Documents seized
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO S SS S . .. . 4228/DEL/2011 TO 4233/DEL/2011 4228/DEL/2011 TO 4233/DEL/2011 4228/DEL/2011 TO 4233/DEL/2011 4228/DEL/2011 TO 4233/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2003 2003 2003 2003 - -- - 04 TO 2008 04 TO 2008 04 TO 2008 04 TO 2008 - -- - 09 0909 09 ASSISTANT COMMISSION ASSISTANT COMMISSION ASSISTANT COMMISSION ASSISTANT COMMISSION ER OF ER OF ER OF ER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -21, ROOM 21, ROOM 21, ROOM 21, ROOM NO.344, E NO.344, E NO.344, E NO.344, E- -- -2, ARA CENTRE, 2, ARA CENTRE, 2, ARA CENTRE, 2, ARA CENTRE, JHANDEWALAN EXT., JHANDEWALAN EXT., JHANDEWALAN EXT., JHANDEWALAN EXT., NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 055. 110 055. 110 055. 110 055. VS. VS. VS. VS. M/S SHIELD HOME PVT.LTD., M/S SHIELD HOME PVT.LTD., M/S SHIELD HOME PVT.LTD., M/S SHIELD HOME PVT.LTD., C CC C- -- -1/216, LAJPAT NAGAR, 1/216, LAJPAT NAGAR, 1/216, LAJPAT NAGAR, 1/216, LAJPAT NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 024. 110 024. 110 024. 110 024. PAN : AAHCS9403K. PAN : AAHCS9403K. PAN : AAHCS9403K. PAN : AAHCS9403K. (APPELLANT) (RESPONDENT) CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION NO NONO NO S.364/DEL/2011 TO 369/DEL/2011 S.364/DEL/2011 TO 369/DEL/2011 S.364/DEL/2011 TO 369/DEL/2011 S.364/DEL/2011 TO 369/DEL/2011 (IN ITA NOS.4228/DEL/2011 TO 4233/DEL/2011) (IN ITA NOS.4228/DEL/2011 TO 4233/DEL/2011) (IN ITA NOS.4228/DEL/2011 TO 4233/DEL/2011) (IN ITA NOS.4228/DEL/2011 TO 4233/DEL/2011) ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2003 2003 2003 2003 - -- - 04 TO 2008 04 TO 2008 04 TO 2008 04 TO 2008 - -- - 09 0909 09 M/S BHATIA PROPCON PVT.LTD., M/S BHATIA PROPCON PVT.LTD., M/S BHATIA PROPCON PVT.LTD., M/S BHATIA PROPCON PVT.LTD., (FORMERLY KNOWN AS (FORMERLY KNOWN AS (FORMERLY KNOWN AS (FORMERLY KNOWN AS M/S SHIELD HOME PVT.LTD.), M/S SHIELD HOME PVT.LTD.), M/S SHIELD HOME PVT.LTD.), M/S SHIELD HOME PVT.LTD.), C CC C- -- -1/216, LAJPAT NAGAR, 1/216, LAJPAT NAGAR, 1/216, LAJPAT NAGAR, 1/216, LAJPAT NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 024. 110 024. 110 024. 110 024. PAN : AAHCS9403 PAN : AAHCS9403 PAN : AAHCS9403 PAN : AAHCS9403K. K.K. K. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -21, ROOM NO.344, E 21, ROOM NO.344, E 21, ROOM NO.344, E 21, ROOM NO.344, E- -- - 2, ARA CENTRE, 2, ARA CENTRE, 2, ARA CENTRE, 2, ARA CENTRE, JHANDEWALAN EXT., JHANDEWALAN EXT., JHANDEWALAN EXT., JHANDEWALAN EXT., NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 055. 110 055. 110 055. 110 055. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI SANJIV SHANKAR, CIT - DR. ASSESSEE BY : SHRI KAPIL GOEL, ADVOCA TE. DATE OF HEARING : 27.01.2016 27.01.2016 27.01.2016 27.01.2016 DATE OF PRONOUNCEMENT : 24.02.2016 24.02.2016 24.02.2016 24.02.2016 ORDER ORDER ORDER ORDER PER BENCH PER BENCH PER BENCH PER BENCH : :: :- -- - THESE APPEALS BY THE REVENUE AND THE CROSS-OBJECTI ONS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-II, DELHI DATED 14 TH JULY, 2011. ITA-4228/D/2011 & 11 OTHERS 2 2. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LEARNED COUNSEL THAT BY WAY OF CROSS-OBJECTIONS, THE ASSESS EE HAS CHALLENGED THE VALIDITY OF THE ISSUE OF NOTICE U/S 153C OF THE INCOME-TAX ACT, 1961 AND CONSEQUENTLY, THE VALIDITY OF THE ASSESSMENT OR DER PASSED IN PURSUANCE THERETO. THEREFORE, THE CROSS-OBJECTIONS OF THE ASSESSEE SHOULD BE HEARD AND DECIDED FIRST. LEARNED CIT-DR HAS NO OBJECTION FOR THE HEARING OF CROSS-OBJECTIONS FIRST. 3. IN THE CROSS-OBJECTIONS FOR ALL THE YEARS, THE A SSESSEE HAS RAISED SIMILAR GROUNDS. THEREFORE, WE REPRODUCE HEREIN BE LOW THE GROUND NO.1 RAISED BY THE ASSESSEE FOR ASSESSMENT YEAR 200 3-04 :- THAT THE NOTICE ISSUED U/S 153C AND THE ASSESSMENT ORDER PASSED U/S 153C/143(3) ARE ILLEGAL, BAD IN LAW, WIT HOUT JURISIDCITON AND BARRED BY TIME LIMITATION. 4. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT THIS ISSUE IS SQUAREL Y COVERED BY THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CIT VS. RRJ SECURITIES LTD. [2015] 62 TAXMANN.COM 391 (DELHI) AND CIT VS. KABUL CHAWLA [2015] 234 TAXMAN 300 (DELHI). HE POINTED OUT THAT IN PURSUANCE TO THE RTI APPLICATION, THE REVENUE HAS I NFORMED THE ASSESSEE THAT NO SATISFACTION NOTE IS RECORDED BY T HE ASSESSING OFFICER OF THE PERSON SEARCHED. SUCH INTIMATION IS PLACED AT PAGE 4, 5 AND 6 OF THE ASSESSEES PAPER BOOK. HE SUBMITTED THAT HON'B LE JURISDICTIONAL HIGH COURT HAS CLEARLY STATED THAT RECORDING OF THE SATISFACTION NOTE BY THE ASSESSING OFFICER OF THE PERSON SEARCHED IS A P RE-CONDITION FOR ASSUMING JURISDICTION U/S 153C BY THE REVENUE. HE FURTHER POINTED OUT THAT THERE IS NO INCRIMINATING MATERIAL AND THE ASS ESSING OFFICER HAS NOT BASED ADDITION IN ANY OF THE ORDERS ON THE BASI S OF SEIZED MATERIAL. ON THIS GROUND ALSO, IN VIEW OF THE DECISION OF HON 'BLE JURISDICTIONAL HIGH COURT, THE INITIATION OF PROCEEDINGS U/S 153C IS NOT SUSTAINABLE. ITA-4228/D/2011 & 11 OTHERS 3 5. LEARNED CIT-DR, ON THE OTHER HAND, RELIED UPON T HE ORDER OF LEARNED CIT(A) AND HE STATED THAT THIS GROUND WAS N OT RAISED BEFORE THE CIT(A). BEFORE THE CIT(A), THE ASSESSEE HAS RAISED THE GENERAL GROUND ABOUT THE VALIDITY OF NOTICE U/S 153C WHICH HAS RIG HTLY BEEN DECIDED BY THE CIT(A) IN FAVOUR OF THE ASSESSEE. IF THE ASSES SEE WANTED TO RAISE ANOTHER GROUND RELATING TO SECTION 153C, HE COULD H AVE RAISED THE ADDITIONAL GROUND. NO SUCH ADDITIONAL GROUND IS RA ISED BY THE ASSESSEE BEFORE THE ITAT. HE ALSO STATED THAT THE SEARCH HA D TAKEN PLACE IN THE CASE OF SHRI B.K. DHINGRA, SMT. POONAM DHINGRA AND M/S MADHUSUDAN BUILDCON PVT.LTD. ON 20 TH OCTOBER, 2008 AND DURING THE COURSE OF SEARCH AT THEIR PREMISES, CERTAIN DOCUMENTS BELONGING TO T HE ASSESSEE WERE SEIZED. THUS, ALL THE CONDITIONS FOR INITIATING PR OCEEDINGS U/S 153C WERE FULFILLED AND THE SATISFACTION WAS DULY RECORD ED BY THE ASSESSING OFFICER BEFORE ISSUE OF NOTICE U/S 153C. HE, THERE FORE, SUBMITTED THAT THE ORDER OF LEARNED CIT(A) ON THIS POINT MAY BE SU STAINED AND THE ASSESSEES CROSS-OBJECTIONS SHOULD BE REJECTED. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE RELEVANT MATERIAL PLACED BEFORE US. LEARNED CIT-DR HAS CONTENDED THAT THE GROUND RAISED BY THE ASSESSEE BEFORE THE L EARNED CIT(A) WITH REGARD TO VALIDITY OF SECTION 153C WAS DIFFERENT TH AN THE GROUND RAISED BEFORE THE ITAT. THEREFORE, IN EFFECT, THE ASSESSE E IS RAISING SEPARATE GROUND WHICH IS NOT PERMISSIBLE UNLESS AN ADDITIONA L GROUND IS RAISED BEFORE THE ITAT BY DULY SEEKING PERMISSION THERE FO R. WE ARE UNABLE TO AGREE WITH THIS CONTENTION OF LEARNED CIT-DR. THE ASSESSEE HAS RAISED THE GROUND RELATING TO VALIDITY OF SECTION 153C BEF ORE THE CIT(A) WHICH IS EVIDENT FROM PAGE 1 & 2 OF LEARNED CIT(A)S ORDE R WHEREIN GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE REPRODUCED. FROM THE PLAIN READING OF THOSE GROUNDS OF APPEAL, IT IS CLEAR THAT THE AS SESSEE RAISED THE GROUND RELATING TO VALIDITY OF INITIATION OF PROCEE DINGS U/S 153C AS WELL AS THE CONSEQUENTIAL ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER. THAT ONCE A GROUND IS RAISED, THEN FRESH ARGUMENTS RELATING TO ITA-4228/D/2011 & 11 OTHERS 4 SUCH GROUND CAN ALWAYS BE TAKEN AT ANY STAGE. THER EFORE, THE CONTENTION OF LEARNED CIT(A) THAT THE ASSESSEE IS R AISING THE FRESH GROUND IS UNTENABLE. 7. NOW, COMING TO THE MERIT OF THE VALIDITY OF NOTI CE U/S 153C, WE FIND THAT THE SEARCH HAD TAKEN PLACE AT THE RESIDEN CE OF SHRI B.K. DHINGRA, SMT. POONAM DHINGRA AND M/S MADHUSUDAN BUI LDCON PVT.LTD. AND, DURING THE COURSE OF SEARCH AT THEIR PREMISES, CERTAIN DOCUMENTS BELONGING TO THE ASSESSEE WERE SEIZED. IN REPLY TO THE RIGHT TO INFORMATION ACT, THE DEPARTMENT HAS INTIMATED THAT NO SATISFACTION NOTE IS RECORDED IN THE CASE OF SHRI B.K. DHINGRA A ND SMT. POONAM DHINGRA. COPY OF SUCH INFORMATION IS PLACED AT PAG E 4, 5 & 6 OF THE ASSESSEES PAPER BOOK. LEARNED CIT-DR ALSO COULD N OT PRODUCE ANY SATISFACTION HAVING BEEN RECORDED BY THE ASSESSING OFFICER OF THE PERSON SEARCHED. HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF RRJ SECURITIES LTD. (SUPRA) AT PARAGRAPH 13 HELD AS UND ER:- 13. THE FIRST AND FOREMOST STEP FOR INITIATION OF PROCEEDINGS UNDER SECTION 153C OF THE ACT IS FOR TH E AO OF THE SEARCHED PERSON TO BE SATISFIED THAT THE ASSETS OR DOCUMENTS SEIZED BELONG TO THE ASSESSEE (BEING A PE RSON OTHER THAN THE SEARCHED PERSON). THE AO OF THE ASSESSEE, ON RECEIVING THE DOCUMENTS AND THE ASSETS SEIZED, W OULD HAVE JURISIDCITON TO COMMENCE PROCEEDINGS UNDER SEC TION 153C OF THE ACT. THE AO OF THE SEARCHED PERSON IS NOT REQUIRED TO EXAMINE WHETHER THE ASSETS OR DOCUMENTS SEIZED REFLECT UNDISCLOSED INCOME. ALL THAT IS REQ UIRED FOR HIM IS TO SATISFY HIMSELF THAT THE ASSETS OR DOCUME NTS DO NOT BELONG TO THE SEARCHED PERSON BUT TO ANOTHER PE RSON. THEREAFTER, THE AO HAS TO TRANSFER THE SEIZED ASSETS/DOCUMENTS TO THE AO HAVING JURISDICTION OF T HE ASSESSEE TO WHOM SUCH ASSETS/DOCUMENTS BELONG. SEC TION 153C(1) OF THE ACT CLEARLY POSTULATES THAT ONCE THE AO OF A PERSON, OTHER THAN THE ONE SEARCHED, HAS RECEIVED T HE ASSETS OR THE DOCUMENTS, HE IS TO ISSUE A NOTICE TO ASSESS/RE-ASSESS THE INCOME OF SUCH PERSON THAT I S, THE ASSESSEE OTHER THAN THE PERSON SEARCHED IN ACCORD ANCE WITH PROVISIONS OF SECTION 153A OF THE ACT. (EMPHASIS BY UNDERLINING SUPPLIED BY US) ITA-4228/D/2011 & 11 OTHERS 5 8. FROM THE ABOVE, IT IS EVIDENT THAT HON'BLE JURIS DICTIONAL HIGH COURT HAS HELD IN CLEAR WORDS THAT FIRST AND FOREMO ST STEP FOR INITIATION OF PROCEEDINGS U/S 153C IS FOR THE ASSESSING OFFICE R OF THE SEARCHED PERSON TO BE SATISFIED THAT THE ASSETS OR DOCUMENTS SEIZED BELONG TO THE ASSESSEE. ADMITTEDLY, NO SUCH SATISFACTION IS RECORDED BY THE ASSESSING OFFICER OF THE PERSON SEARCHED. THE CBDT , VIDE CIRCULAR NO.24/2015 DATED 31 ST DECEMBER, 2015, HELD AS UNDER:- SUBJECT : RECORDING OF SATISFACTION NOTE UNDER SEC TION 158BD/153C OF THE ACT REG.- THE ISSUE OF RECORDING OF SATISFACTION FOR THE PURPOSES OF SECTION 158BD/153C HAS BEEN SUBJECT MAT TER OF LITIGATION. 2. THE HON'BLE SUPREME COURT IN THE CASE OF M/S CALCUTTA KNITWEARS IN ITS DETAILED JUDGMENT IN CIVI L APPEAL NO.3958 OF 2014 DATED 12.3.2014 (AVAILABLE IN NJRS AT 2014-LL-0312-51) HAS LAID DOWN THAT FOR THE PURPOSE OF SECTION 158BD OF THE ACT, RECORDING OF A SATISFACTI ON NOTE IS A PREREQUISITE AND THE SATISFACTION NOTE MUST BE PR EPARED BY THE AO BEFORE HE TRANSMITS THE RECORD TO THE OTH ER AO WHO HAS JURISDICTION OVER SUCH OTHER PERSON U/S 158 BD. THE HONBLE COURT HELD THAT THE SATISFACTION NOTE COULD BE PREPARED AT ANY OF THE FOLLOWING STAGES : (A) AT THE TIME OF OR ALONG WITH THE INITIATION OF PROCEEDINGS AGAINST THE SEARCHED PERSON UNDER SECTI ON 158BC OF THE ACT; OR (B) IN THE COURSE OF THE ASSESSMENT PROCEEDINGS UND ER SECTION 158BC OF THE ACT; OR (C) IMMEDIATELY AFTER THE ASSESSMENT PROCEEDINGS AR E COMPLETED UNDER SECTION 158BC OF THE ACT OF THE SEA RCHED PERSON. 3. SEVERAL HIGH COURTS HAVE HELD THAT THE PROVISION S OF SECTION 153C OF THE ACT ARE SUBSTANTIALLY SIMILAR/P ARI- MATERIA TO THE PROVISIONS OF SECTION 158BD OF THE A CT AND THEREFORE, THE ABOVE GUIDELINES OF THE HONBLE SC, APPLY TO PROCEEDINGS U/S 153C OF THE IT ACT, FOR THE PURPOSE S OF ITA-4228/D/2011 & 11 OTHERS 6 ASSESSMENT OF INCOME OF OTHER THAN THE SEARCHED PER SON. THIS VIEW HAS BEEN ACCEPTED BY CBDT. 4. THE GUIDELINES OF THE HON'BLE SUPREME COURT AS REFERRED TO IN PARA 2 ABOVE, WITH REGARD TO RECORDI NG OF SATISFACTION NOTE, MAY BE BROUGHT TO THE NOTICE OF ALL FOR STRICT COMPLIANCE. IT IS FURTHER CLARIFIED THAT EV EN IF THE AO OF THE SEARCHED PERSON AND THE OTHER PERSON IS ON E AND THE SAME, THEN ALSO HE IS REQUIRED TO RECORD HIS SA TISFACTION AS HAS BEEN HELD BY THE COURTS. 5. IN VIEW OF THE ABOVE, FILING OF APPEALS ON THE I SSUE OF RECORDING OF SATISFACTION NOTE SHOULD ALSO BE DECID ED IN THE LIGHT OF THE ABOVE JUDGEMENT. ACCORDINGLY, THE BOA RD HEREBY DIRECTS THAT PENDING LITIGATION WITH REGARD TO RECORDING OF SATISFACTION NOTE UNDER SECTION 158BD/ 153C SHOULD BE WITHDRAWN/NOT PRESSED IF IT DOES NOT MEET THE GUIDELINES LAID DOWN BY THE APEX COURT. 9. FROM THE ABOVE, IT IS EVIDENT THAT THE CBDT HAS ACCEPTED THAT THE DECISION OF HONBLE APEX COURT IN THE CASE OF M /S CALCUTTA KNITWEARS IN CIVIL APPEAL NO.3958 OF 2014 DATED 12 TH MARCH, 2014 ISSUED FOR THE PURPOSE OF SECTION 158BD WOULD BE SQ UARELY APPLICABLE FOR THE PURPOSE OF PROCEEDINGS U/S 153C. THE CIRCU LAR ALSO OBSERVED THAT RECORDING OF SATISFACTION NOTE IS A PRE-REQUIS ITE AND THE SATISFACTION MUST BE PREPARED BY THE ASSESSING OFFI CER BEFORE HE TRANSMITS THE RECORD TO THE OTHER ASSESSING OFFICER WHO HAS JURISDICTION OVER SUCH OTHER PERSON. IN PARAGRAPH 4, IT HAS BEE N FURTHER CLARIFIED THAT SUCH SATISFACTION NOTE IS ESSENTIAL EVEN IF TH E ASSESSING OFFICER OF THE SEARCHED PERSON AND THE OTHER PERSON IS THE ONE AND THE SAME. ADMITTEDLY, IN THE CASE OF THE ASSESSEE, NO SUCH SA TISFACTION IS RECORDED BY THE ASSESSING OFFICER OF THE PERSON SEA RCHED. IN PARAGRAPH 5 OF THE ABOVE CIRCULAR, THE CBDT HAS DIR ECTED THE REVENUE AUTHORITIES TO WITHDRAW THE APPEAL IF THERE IS NO R ECORDING OF THE SATISFACTION NOTE IN THE LIGHT OF ABOVE JUDGMENT. IN OUR OPINION, THE ABOVE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT AND THE CIRCULAR OF THE CBDT ARE SQUARELY APPLICABLE TO THE FACTS OF TH E CASE, AS NO SATISFACTION IS RECORDED BY ASSESSING OFFICER OF PE RSON SEARCHED. ITA-4228/D/2011 & 11 OTHERS 7 RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE JURI SDICTIONAL HIGH COURT IN THE CASE OF RRJ SECURITIES LTD. (SUPRA) AND CBDT S CIRCULAR NO.24/2015 DATED 31 ST DECEMBER, 2015, WE ARE OF THE OPINION THAT THE INITIATION OF PROCEEDINGS U/S 153C CANNOT BE HELD T O BE VALID. 10. THOUGH THE LEARNED COUNSEL FOR THE ASSESSEE HAS RAISED SEVERAL OTHER OBJECTIONS WITH REGARD TO VALIDITY OF THE NOT ICE U/S 153C BUT SINCE, IN OUR OPINION, THE FIRST AND FOREMOST STEP FOR INITIATION OF PROCEEDINGS U/S 153C I.E., THE RECORDING OF THE SAT ISFACTION BY THE ASSESSING OFFICER OF THE PERSON SEARCHED IS MISSING , THE PROCEEDINGS ARE INVALID AND, THEREFORE, THE OTHER ARGUMENTS OF THE ASSESSEE NEED NOT BE EXAMINED IN DETAIL. WE, THEREFORE, RESPECTF ULLY FOLLOWING THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN TH E CASE OF RRJ SECURITIES LTD. (SUPRA) AND THE CIRCULAR OF CBDT NO .24/2015 DATED 31 ST DECEMBER, 2015, HOLD THE INITIATION OF PROCEEDINGS U/S 153C TO BE INVALID AND QUASH THE SAME. SINCE THE NOTICE U/S 1 53C ITSELF HAS BEEN HELD TO BE INVALID, THE ASSESSMENT ORDER PASSED IN PURSUANCE THERETO IS ALSO QUASHED. ONCE THE ASSESSMENT ORDER IS QUASHED , THE APPEALS FILED BY THE REVENUE WHICH ARE WITH REGARD TO THE A DDITIONS DELETED BY THE CIT(A), DO NOT SURVIVE FOR ADJUDICATION ON MERI TS. ACCORDINGLY, ALL THE APPEALS FILED BY THE REVENUE ARE DISMISSED AND THE CROSS- OBJECTIONS OF THE ASSESSEE ARE ALLOWED. 11. IN THE RESULT, THE APPEALS OF THE REVENUE ARE D ISMISSED AND THE CROSS-OBJECTIONS OF THE ASSESSEE ARE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 24.02.2016 . SD/- SD/- (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-4228/D/2011 & 11 OTHERS 8 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCL CENTRAL CIRCL CENTRAL CIRCL CENTRAL CIRCLE EE E- -- -21, ROOM NO.344, E 21, ROOM NO.344, E 21, ROOM NO.344, E 21, ROOM NO.344, E- -- -2, ARA CENTRE, 2, ARA CENTRE, 2, ARA CENTRE, 2, ARA CENTRE, JHANDEWALAN EXT., NEW DELHI JHANDEWALAN EXT., NEW DELHI JHANDEWALAN EXT., NEW DELHI JHANDEWALAN EXT., NEW DELHI 110 055. 110 055. 110 055. 110 055. 2. RESPONDENT : M/S BHATIA PROPCON PVT.LTD., M/S BHATIA PROPCON PVT.LTD., M/S BHATIA PROPCON PVT.LTD., M/S BHATIA PROPCON PVT.LTD., (FORMERLY KNOWN AS M/S SHIELD HOME PVT.LTD.), (FORMERLY KNOWN AS M/S SHIELD HOME PVT.LTD.), (FORMERLY KNOWN AS M/S SHIELD HOME PVT.LTD.), (FORMERLY KNOWN AS M/S SHIELD HOME PVT.LTD.), C CC C- -- -1/216, LAJPAT NAGAR, NEW DELHI 1/216, LAJPAT NAGAR, NEW DELHI 1/216, LAJPAT NAGAR, NEW DELHI 1/216, LAJPAT NAGAR, NEW DELHI 110 024. 110 024. 110 024. 110 024. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR