Appeal details
Counselvise Citation
[2021] 107 COUNSELVISE.COM (IT) 3027 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 1 month(s) 13 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-10-2021
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB-B
Next Hearing Date
05-10-2021
Assessment Year
2009-2010
Appeal Filed On
07-09-2020
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) SL. NO. ITA NO. & ASST. YEAR APPELLANT RESPONDENT 1. 491/HYD/2020 2009 - 10 ACIT, CENTRAL CIRCLE 3(1), HYDERABAD. SHRI SYED RAFIUDDIN, HYDERABAD. PAN BERPS6026J 2. 492/HYD/2020 2009 - 10 ACIT, CENTRAL CIRCLE 3(1), HYDERABAD. SMT. SUNITHA PRASAD, HYDERABAD PAN BKGPP 3507E 3. 493/HYD/2020 2009 - 10 - DO - MRS. LORAINE REENA PETERSON, HYDERABAD. PAN APOPP0610C 4. 494/HYD/2020 2009 - 10 - DO - SHRI SURENDRANATH MANDEM, NEW DELHI. PAN AFYPM6952L APPELLANT BY : SHRI YVST SAI (D.R.) RESPONDENT S BY : SHRI P. MURALI MOHANA RAO. DATE OF HEARING : 05.10 . 2021. DATE OF PRONOUNCEMENT : 20 . 10 .2021. O R D E R PER BENCH : TH ESE REVENUES FOUR APPEALS AGAINST AS MANY ASSESSEES FOR ASST. YEAR 20 09 - 10 ARISE FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 1 , HYDERABAD S SEPARATE ORDERS, ALL DT. 28.02 .20 20 PASSED IN CASE NO S . 10093/2019 - 2020; 10095/2019 - 2020; 10100/2019 - 2 ITA NO S . 491 TO 494/HYD/2020 2020 AND 10097/2019 - 2020; RESPECTIVELY IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 153C OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT ALL THE FOUR REVENUES INSTANT APPEAL S SUFFER FROM 9 DAYS DELAY IN FILING. LEARNED DEPARTMENT REPRESENTATIVE SUBMITTED THAT DUE TO THE OUTBREAK OF PANDEMIC COVID 19 UNABLE TO GET THE DOCUMENTS FR O M THE DEPARTMENT WHICH CAUSED THE IMPUGNED DELAY IN FILING OF THE INSTANT APPEAL. CASE LAW COLLECTOR LAND ACQUISITION VS. MST. KATIJI & ORS, 1987 AIR 1353 (SC) AND UNI VERSITY OF DELHI VS. UNION OF INDIA, CIVIL APPEAL NO.9488 & 9489/2019 DATED 17 TH DEC., 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. WE ACCORDINGLY HOLD THAT ASSE SSEE'S IMPUGNED DELAY OF 9 DAYS IS NEITHER INTENTION NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND CONTROL. CASE S ARE NOW TAKEN UP FOR ADJUDICATION ON MERITS. 3 ITA NO S . 491 TO 494/HYD/2020 3 . IT TRANSPIRES DURING THE COURSE OF HEARING THAT THE CIT(A) HEREIN HAS QUASHED THE ASSESSING OFFICERS 143(3) R.W.S. 153C ASSESSMENT FOR WANT OF A VALID SATISFACTION RECORDED IN FURTHERANCE TO THE SEARCH IN ISSUE DT.11.3.2010. 4 . LEARNED CIT - DR VEHEMENTLY CONTENDED DURING THE COURSE OF HEARING THAT THE CIT(A) HAD ERRED IN LAW AND ON FACTS IN TERMING THE IMPUGNED ASSESSMENT AS AN INVALID ONE FOR WANT OF A VALID SATISFACTION NOTE BY THE ASSESSING OFFICER WHO W AS ALSO THE COMPETENT AUTHORITY TO ASSESS THE SEARCHED PARTY M/S. M BS JEWELLERS PVT. LTD. HE QUOTED HON'BLE APEX COURTS RECENT DECISION IN M/S. SUPER MALLS PVT. LTD. VS. PCIT CIVIL APPEAL NO.2006 - 20 07 OF 2020 DT.5.3.2020 THAT TWIN ROUNDS OF SATISFACTION IN CASE OF A COMMON ASSESSING OFFICER OF BOTH THE SEARCHED PERSON AND THAT OF THE THIRD PARTY, IS NO MORE MANDATORY WHEN ANY I NCRIMINATING MATERIAL IS FOUND OR SEIZED DURING THE COURSE OF SEARCH BELONGS TO, PERTAINS TO AND RELATES TO U/S.153C OF THE ACT; AS THE CASE MAY BE. WE DEEM IT APPROPRIATE AT THIS STAGE TO REPRODUCE THE ASSESSING 4 ITA NO S . 491 TO 494/HYD/2020 OFFICERS CORRESPONDING ORDER SHEE T ENTRY INITIATING 153C PROCEEDINGS AGAINST THE ASSESSEE AS FOLLOWS : A S EARCH & SEIZURE OPERATION W AS CONDUCTED AT THE PREMISES OF MBS JEWELLERS PVT. LTD. AND OTHERS. CONSEQUENT TO THAT, ASSESSMENTS IN THE CASE OF APPELLANT WAS COMPLETED AND PASSED BY THE A.O. U/S.143(3) R.W.S. ;153C DT.30.12.2011. IN CONNECTION TO THESE IT IS SUBMITTED THAT THE HONBLE ITAT IN ONE OF THE GROUP CASES OF THE APPELLANT, NA MELY P.S. PRASAD FOR A.Y. 2006 - 07 VIDE ITS ORDER DT.09.12.2015 HAVING ITA NO.1211/H/2014 (PARA NO.4) HAS QUASHED THE ORDER ON ACCOUNT OF NON - SATISFACTION U/S. 153C OF THE ACT AND HAS ALLOWED THE APPEAL OF THE ASSESSEE. WE FIND NO SUBSTANCE IN REVENUES FOREGOING SOLE SUBSTANTIVE GRIEVANCE. THIS TRIBUNALS CO - ORDINATE BENCH COMMON ORDER IN M R. S. SATYANARAYAN A & OTHERS DT.9.12.2015 INVOLVING A BATCH OF APPEALS PERTAINING TO THE VERY SEARCH HAS ALREADY CONCLUDED THAT THE ASSESSING OFFICERS FOREGOING IDE NTICAL NOTE HAD FAILED TO RECORD HIS SATISFACTION IN THE PRESCRIBED MANNER U/S. 153C OF THE ACT. LEARNED CIT - DR IS FAIR ENOUGH BEFORE US THAT THE 5 ITA NO S . 491 TO 494/HYD/2020 ASSESSING OFFICER HEREIN HAD RECORDED IDENTICAL SATISFACTION IN ALL THESE CASES. 5 . COUPLED WITH THIS, T HERE IS YET ANOTHER EQUALLY IMPORTANT ASPECT OF THE ISSUE. THERE IS HARDLY ANY DISPUTE THAT WE ARE DEALING WITH A SEARCH IN ISSUE DT.11.3.2010 WHEREIN THE CORRESPONDING STATUTORY EXPRESSION BELONGS TO ONLY HELD THE F IELD UPTO 1.6.2015 WHEN THE FINANCE ACT, 2015 INSERTED SUB - CLAUSES (A) & (B) TO SUB - SECTION (1) OF SECTION 153C ALSO INCLUDING CASES OF THE SEIZED MATERIAL BELONGS TO OR PERTAINS TO A PERSON OTHER THAN THE SEARCHED ASSESSEE. SECTION 153C( 2) ALSO MAKES IT CLEAR THAT SECTION 153A COMES INTO PLAY THE MOMENT OF THE ASSESSING OFFICER OF SUCH A THIRD PARTY INITIATES THE CORRESPONDING PROCEEDINGS TO THIS EFFECT. COUPLED WITH ALL THIS IN THE 2 ND PROVISO TO SUB - SECTION (1) OF SECTION 153A THAT A LL ASSESSMENTS PENDING ON THE DATE OF INITIATION OF SEARCH SHALL ABATE. WE HOLD IN VIEW OF THE FOREGOING STATUTORY P ROVISIONS THAT THE ASSESSING OFFICERS FOREGOING ALLEGED SECTION 153C SATISFACTION ONLY INCORPORATED THE EXPRESSION; WHILST DEALING WITH THE ALLEGED SEIZED MATERIAL, IT ONLY 6 ITA NO S . 491 TO 494/HYD/2020 RELATES TO THAN BELONGS TO AS ON THE DATE OF SEARCH AND THEREFORE ALSO, SECTION 153C SATISFACTION ARE FOUND NOT S AME IS NOT SUSTAINABLE QUA THE INSTANT LATTER ASPECT AS WELL. WE WISH TO MAKE IT CLEAR THAT WE ARE DEALING WITH A SEARCH WHEREIN THE CORRESPONDING STATUTORY PROVISIONS HAVE TO BE GIVEN STRICTER INTERPRETATION ONLY IN LIGHT ONLY IN LIGHT OF HON'BLE APEX COURT DECISION COMMISSIONER OF CUSTOMS VS. DILIP KUMAR & CO. (2018) 9 SCC 1 (SC) (FB). WE ACCORDI NGLY AFFIRM THE CIT(A)S ACTION UNDER CHALLENGE HOLDING THE IMPUGNED 143(3) R.W.S. 153C ASSESSMENT AS LACKING PROPER SATISFACTION. ORDERED ACCORDINGLY. 6. 5. TH E S E REVENUES FOUR APPEAL S ARE DISMISSED IN ABOVE TERMS . A COPY OF THIS COMMON ORDER BE P LACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 20TH OCT . , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 20 . 10 .2021. * REDDY GP 7 ITA NO S . 491 TO 494/HYD/2020 COPY TO : 1. I) MR. SYED RAFIUDDIN, H.NO.1 - 68, LINGOJIGUDA, SAROORNAGAR, HYDERABAD. II)MRS. SUNITHA PRASAD, 506, A.C.SHARMA COMPLEX, S.D. ROAD,SECUNDERABAD. III) MRS. LORAINE REENA PETERSON, W/O R. PETERSON, 14/240, MIRJALGUDA, MALKAJIGIRI, HYDERABAD. IV) SHRI M. SURENDRANATH, PLOT NO.8, HILL HIT SOCIETY,F.NO.B - 704, SECTOR 22, DWARKA, NEW DELHI. 2. ACIT/DCIT, CENTRAL CIRCLE 3 (1), HYDERABAD. 3. PR. C I T (CEN TRAL) , HYDERABAD. /ADDL. CIT,CENTRAL RANGE 2, HYDERABAD. 4. CIT(APPEALS) - 11, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.
