Assistant Commissioner of Income Tax ,Central Circle-3(1), Hyderabad V. Vallabhaneni Vamshi Mohan , Vijayawada

ITA 440/Hyd/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6105 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2006-2007
• Appeal Filed On: 02-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• 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 Nos.439 to 442/Hyd/2021 (Assessment Years : 2005-06 to 2007-08 & 2009-10) Asst. Commissioner of Income Tax, Central Circle 3(1), Hyderabad. .....Appellant. Vs. Shri Vamsi Mohan Vallabhaneni, Vijayawada. PAN ADRPV4231C .....Respondent. Appellant By : Shri P. Murali Mohan Rao, C.A. Respondent By : Ms. P. Sunitha. (D.R.) Date of Hearing : 16.12.2021. Date of Pronouncement : 20.12.2021. O R D E R Per Shri S.S. Godara, J.M. : These Revenue’s appeals for Asst. Years 2005-06 to 2007-08 and 2009-10 arise from the Commissioner of Income Tax (Appeals)-11, Hyderabad’s separate orders, all dt.31.08.2021 passed in case Nos.10861/2019-20, 10862/2019-20, 10863/2019-20 and 10865/2019-20 2 ITA Nos.439 to 442/Hyd/2021 involving proceedings u/s. 143(3) r.w.s. 153C of the Income Tax Act, 1961 ('the Act'); respectively. Heard both the parties. Case file perused. 2. The Revenue raises the following identical substantive grounds in the instant appeals : “ 2. The ld. CIT(A) erred in not following the decision of Hon’ble Supreme Court in the case of M/s. Super Malls Pvt. Ltd. in Civil Appeal No.s 2006-07 of 2020 wherein it has held that “in the case where the Assessing Officer of the searched person and the other person is the same, it is sufficient by the Assessing Officer to note in the satisfaction note that the documents seized from the searched person belonged to the other person.” 3. The ld. CIT(A) erred in not appreciating the fact that the Assessing Officer being one and the same for both the searched person and other person had recorded satisfaction in the file of the other person to the effect that the seized material belonged to the other person, therefore the provisions of section 153C of the Act have been complied with. 3 ITA Nos.439 to 442/Hyd/2021 4. The learned CIT (Appeals) erred in holding that nothing incriminating has been recorded in the satisfaction note without considering the fact that there is no such requirement under the provisions of section 153C as applicable for the relevant period.” 3. There is hardly any dispute between the parties and we are dealing with the search in issue dt.11.03.2010 carried in case of M/s. NBS Jewelleries Pvt. Ltd. A perusal of page 9 in the learned CIT(A)’s order’s in Assessment Year 2005-06 indicates that the Assessing Officer thereafter recorded his corresponding satisfaction that the alleged incriminating material only “relates to” the assessee whereas the said statutory expression to this effect stood inserted vide Finance Act,2015 w.e.f. 1.6.2015 without carrying having retrospective effect. Faced with this situation, we adopt stricter rule of interpretation in light of Commissioner of Customs Vs. Dilip Kumar & Co. (2018) 9 SCC 1 (SC) that the learned CIT(A) has rightly quashed the impugned assessment in absence of a valid satisfaction note. It is further made clear that this tribunal’s common 4 ITA Nos.439 to 442/Hyd/2021 order in ITA Nos.491 to 494/Hyd/2020 dt.20.10.2021 (ACIT Vs. Syed Rafiuddin & Others) involving the very search and various third parties has already adopted identical reasons while upholding the learned CIT(A)’s similar lower appellate findings. We thus adopt judicial consistency in above terms. 4. These Revenue’s four appeals are dismissed. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 20th Dec., 2021. Sd/- Sd/- (L.P. SAHU) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.20.12.2021. * Reddy gp Copy to : 1. Shri VamsiMohanVallahaneni, 1-150/5-3, R S Kalyani Towers,Srinagar Colony, Vijayawada-521 101 2. ACIT, Central Circle 3(1), Hyderabad. 3. Pr. C I T (Central), , Hyderabad. 4. CIT(Appeals)-11, Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.