Shri Ranjan Gupta, New Delhi V. DCIT, Faridabad

ITA 503/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5770 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 23-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Keywords: Search and seizure; Document seized; Opportunity of being heard; Documents seized
• Section: 143(3); 133A; 153A; 132; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES A : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.504/DEL./2015 ASSESSMENT YEAR 2012-2013 M/S. BNB INVESTMENT & PROPERTIES LTD., GROUND FLOOR, SOLTAIRE PLAZA, M.G. ROAD, GURGAON, HARYANA. PAN AAACB3800A VS THE DCIT, CENTRAL CIRCLE-1 FARIDABAD. (APPELLANT) (RESPONDENT) ITA.NO.503/DEL./2015 ASSESSMENT YEAR 2012-2013 SHRI RANJAN GUPTA, W-40, G.K.-II, NEW DELHI. PAN AAGPG8809F VS THE DCIT, CENTRAL CIRCLE-1 FARIDABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI RAJ KUMAR GUPTA, C.A. FOR REVENUE : SHRI RAVI KANT GUPTA, SR. D.R. DATE OF HEARING : 25.05.2018 DATE OF PRONOUNCEMENT : 27.06.2018 2 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ORDER PER BHAVNESH SAINI, J.M. BOTH THE APPEALS BY DIFFERENT ASSE SSEES ARE DIRECTED AGAINST THE DIFFERENT ORDERS OF THE LD. CIT(A)-3, G URGAON, DATED 09 TH DECEMBER, 2014, FOR THE A.Y. 2012-2013. 1.1. BOTH THE PARTIES MAINLY ARGUED IN ITA.NO.504/DEL./2015 IN THE CASE OF M/S. BNB INVEST MENTS & PROPERTIES LTD., AND SUBMITTED THAT THE ISSUE IS SA ME IN THE REMAINING APPEAL. 1.2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD AND GONE THROUGH THE FINDINGS OF THE AUTHORITIES BELOW. FOR THE PURPOSE OF DISPOSAL OF BOTH THE APPEALS, WE DECIDE THE APPE AL IN THE CASE OF M/S. BNB INVESTMENTS & PROPERTIES LTD., AS UNDER . 3 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ITA.NO.504/DEL./2015 M/S. BNB INVESTMENTS & PROPE RTIES LTD., A.Y. 2012-2013 : 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT IN THIS CASE, A SEARCH AND SEIZURE OPERATION WAS CONDUCTED ON M/S K RRISH GROUP OF CASES ON 09.11.2011. A SURVEY U/S 133A OF THE ACT WAS ALSO CARRIED OUT ON THE BUSINESS PREMISES OF TH E ASSESSEE. ASSESSEE EARNED INCOME FROM BUSINESS AND OTHER SOUR CES. THE ASSESSEE FILED ITS ORIGINAL RETURN DECLARING TOTAL INCOME OF RS.2,08,95,242/- ON 28.09.2012. IN RESPONSE TO NOTI CE UNDER SECTION 153A(1) (A] R.W.S 153C, ASSESSEE FILED REVI SED RETURN DECLARING TOTAL INCOME OF RS. 2,22,43,593/-. ASSESS MENT WAS FRAMED AT RS. 5,22,43,593/- BY MAKING ADDITION OF R S.3 CRORES AS SURRENDERED AMOUNT NOT INCORPORATED IN THE RETUR N OF INCOME. ASSESSEE CHALLENGED THE VALIDITY OF THE ASS ESSMENT PROCEEDINGS AS WELL AS ADDITION ON MERIT BEFORE THE LD. CIT(A). HOWEVER, APPEAL OF THE ASSESSEE HAS BEEN DISMISSED. 4 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. 3. ASSESSEE IN THE PRESENT APPEAL, CHALLENGED THE VALIDITY OF THE PROCEEDINGS UNDER SECTION 153C OF T HE I.T. ACT AND ADDITION OF RS.3 CRORES. THE ASSESSEE ALSO MOVE D AN APPLICATION FOR ADMISSION OF ADDITIONAL GROUNDS IN WHICH ASSESSEE RAISED THE FOLLOWING ADDITIONAL GROUNDS : 1. ADDITIONAL GROUND NO. 1 THAT UNDER THE FACTS AND CIRCUMSTANCES, IN THE ABS ENCE OF ISSUANCE AND SERVICE OF NOTICE U/S. 153 C R/W. SEC. 153A OF THE I.T.ACT, THE JURISDICTION FOR FRAMING THE IMPUG NED ASSTT. HAS BEEN WRONGLY ASSUMED, HENCE, THE IMPUGNED ASSTT . IS WITHOUT JURISDICTION, ILLEGAL AND UNSUSTAINABLE IN LAW. ADDITIONAL GROUND NO. 2 THAT WITHOUT PREJUDICE, AS THE SEIZED DOCUMENTS IN SEARCH OF A 3 RD PARTY HAVE BEEN RECEIVED BY THE AO OF THE ASSESSEE ON 29.08.2013, T HEREFORE, IN VIEW OF SEC. 153C(1) (FIRST PROVISO), THE SEARCH YEAR IS A.Y. 2014-2015 AND NOT IMPUGNED A.Y. 2012-2013, HENCE, I N CASE, IF IMPUGNED ASSTT. HAS BEEN FRAMED U/S. 153 B (1) (B) TREATING A.Y. 2012-2013 AS THE SEARCH YEAR, THE WHO LE ASSTT. 5 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. PROCEEDINGS STANDS VITIATED IN LAW AND UNSUSTAINABL E BECAUSE THE A.Y. 2012-2013 FALLS WITHIN PERIOD OF P RECEDING 6 ASSTT. YEARS AS PROVIDED IN SEC.153A (1)(B), THER EFORE, THE ASSTT. OF A.Y. 2012-2013 WAS TO BE FRAMED ONLY U/S. 153C AND THAT TOO AFTER ISSUANCE AND SERVICE OF NOTICE U /S. 153C R/W. SEC. 153A OF THE I.T.ACT WHICH HAS NEVER BEEN ISSUED AS ADMITTED BY AO IN RT1 REPLY. 2. THAT BOTH THE ABOVE GROUNDS ARE PURE LEGAL GROUNDS WHICH GOES TO THE ROOT OF THE MATTER WHICH CAN BE TAKEN A T ANY STAGE OF PROCEEDINGS BEFORE HONBLE ITAT. 3. THAT, FURTHER, NO NEW FACTS ARE REQUIRED TO BE INVESTIGATED OR PLACE ON RECORDS FOR ADJUDICATING THESE GROUNDS WHI CH ARE ALREADY AVAILABLE ON RECORDS. 4. THAT UNDER ABOVE MENTIONED FACTS AND CIRCUMSTANCES AND AS PER THE FOLLOWING AUTHORITIES, THESE ADDITIONAL GROUNDS DESERVES TO BE ADMITTED:- NATIONAL THERMAL POWER COMPANY LTD. 229 ITR 383 (SC) GEDORE TOOLS PVT. LTD., 238 ITR 268 (DEL.) 5. THAT WITHOUT PREJUDICE, THE ISSUES COVERED IN THESE ADDITIONAL GROUNDS ARE COVERED IN G.N. 1 AND G. N. 2, AS TAKEN INITIALLY IN FORM - 36 ALSO, HOWEVER, THESE H AVE BEEN 6 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. TAKEN SPECIFICALLY ONLY AS A MATTER OF ABUNDANT PRE CAUTION AND TO MEET OUT THE SITUATION IN CASE THE HONBLE C OURT IS OF THE OPINION THAT THE SAME ARE NOT COVERED IN GROUND NOS. 1 & 2 AS INITIALLY TAKEN. 3.1. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED TH AT ADDITIONAL GROUNDS ARE LEGAL IN NATURE AND NO NEW F ACTS SHALL HAVE TO BE CONSIDERED. HE, THEREFORE, SUBMITTED THA T ADDITIONAL GROUNDS MAY BE ADMITTED. HE HAS RELIED UPON THE DEC ISION OF THE HONBLE SUPREME COURT IN THE CASE OF NATIONAL THERM AL POWER CO. LTD., (1998) 229 ITR 383 (SC) AND GEDORE TOOLS PVT. LTD., 238 ITR 268 (DEL.). 4. ON THE OTHER HAND, LD. D.R. SUBMITTED THAT ADDI TIONAL GROUNDS HAVE NO MERIT AND THE SAME MAY BE REJECTED. THE ASSESSMENT HAS BEEN RIGHTLY FRAMED UNDER SECTION 15 3A(1)(B) OF THE I.T. ACT, 1961. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ADDITIONAL GROUNDS ARE LEGAL IN NATUR E AND NO NEW FACTS SHALL HAVE TO BE CONSIDERED. THE ADDITIONAL G ROUNDS GO TO THE VALIDITY OF THE ASSESSMENT PROCEEDINGS UNDER SE CTION 153C 7 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. OF THE I.T. ACT, THEREFORE, THE SAME SHOULD BE ADMI TTED FOR DECIDING THE APPEAL. THE HONBLE PUNJAB & HARYANA H IGH COURT IN THE CASE OF VMT SPINNING CO LTD., VS. CIT (2016) 389 ITR 326 (P & H) CONSIDERING VARIOUS DECISIONS INCLUDING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF NATIONAL T HERMAL POWER CO. LTD., (1998) 229 ITR 383 (SC) HELD THAT THE TRIBUNAL COULD DECIDE THE APPEAL ON A GROUND NEITHER TAKEN I N THE MEMORANDUM OF APPEAL NOR BY SEEKING ITS LEAVE. THE ONLY REQUIREMENT WAS THAT THE TRIBUNAL COULD NOT REST IT S DECISIONS ON ANY OTHER GROUND UNLESS THE PARTY WHO MIGHT BE AFFE CTED HAD SUFFICIENT OPPORTUNITY OF BEING HEARD GIVEN ON THAT GROUND. THEREFORE, THE TRIBUNAL OUGHT TO HAVE EXERCISED ITS DISCRETION IN VIEW OF THE FACT THAT ASSESSEE INTENDED RAISING ONL Y A LEGAL ARGUMENT WITHOUT REFERENCE TO ANY DISPUTED QUESTION OF FACTS. 5.1. CONSIDERING THE ISSUE IN THE LIGHT OF THE FAC T THAT ADDITIONAL GROUNDS ARE LEGAL IN NATURE AND SHALL HA VE BEARING ON THE VALIDITY OF THE ASSESSMENT PROCEEDINGS, THEREFO RE, THE SAME IS ADMITTED FOR THE PURPOSE OF DISPOSAL OF THE APPE AL. 8 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. 5.2. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED TH AT SEARCH WAS CONDUCTED IN THE CASE OF M/S KRRISH GROU P OF CASES ON 09.11.2011. A SURVEY U/S 133A OF THE ACT WAS ALS O CARRIED OUT ON 22.11.2011 AT THE BUSINESS PREMISES OF THE A SSESSEE- COMPANY AND ITS DIRECTOR. THE SEIZED/IMPOUNDED DOCU MENTS IN THE GROUP WERE RECEIVED BY THE A.O. ON 29.08.2013. THESE FACTS ARE MENTIONED IN THE ASSESSMENT ORDER. HE HAS REFER RED TO PB- 161 WHICH IS SATISFACTION NOTE RECORDED UNDER SECTI ON 153C OF THE I.T. ACT IN THE CASE OF ASSESSEE DATED 03.10.20 13. THE SATISFACTION NOTE WAS, THEREFORE, RECORDED IN THE A .Y. 2014-2015 IN THE CASE OF THE PERSON SEARCHED. PB-190 TO 195 A RE THE NOTICES ISSUED UNDER SECTION 153A R.W.S.153C OF THE I.T. AC T IN THE CASE OF THE ASSESSEE FOR A.YS. 2006-2007 TO 2011-2012. H E HAS SUBMITTED THAT NO NOTICE UNDER SECTION 153C HAVE BE EN ISSUED FOR ASSESSMENT YEAR UNDER APPEAL I.E., 2012-2013. H E HAS REFERRED TO PB-160 WHICH IS A REPLY FILED UNDER RTI ACT DATED 01.11.2016 BY DCIT, CC-1, GURGAON, IN WHICH, A.O. H AS REPORTED THAT NO NOTICE UNDER SECTION 153C WAS ISSU ED FOR A.Y. 2012-2013 AS IT WAS A SEARCH YEAR. HENCE, NOTICE UN DER SECTION 9 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. 143(2)/142(1) WERE ISSUED. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE A.O. ACCORDINGLY DID NOT PASS AN Y ASSESSMENT ORDER UNDER SECTION 153C OF THE I.T. ACT AND PASSED THE ASSESSMENT ORDER UNDER SECTION 153B(1)(B) OF TH E I.T. ACT BEING A SEARCH YEAR. HE HAS SUBMITTED THAT FIRST PR OVISO TO SECTION 153C IS APPLICABLE IN THE CASE OF THE ASSES SEE BECAUSE NO SEARCH WAS CONDUCTED IN THE CASE OF THE ASSESSEE . THE AMENDMENT IN SECTION 153C CAME W.E.F. 01.04.2017 WH ICH IS PROSPECTIVE IN NATURE. ASSESSMENT IN A.Y. 2012-2013 UNDER APPEAL SHOULD HAVE BEEN COMPLETED UNDER SECTION 153 C BEING 5 TH YEAR IN THE BLOCK OF 06 TH YEAR. THE FIRST PROVISO TO SECTION 153C(1) PROVIDES THAT IN CASE OF SECTION 153C, THE DATE OF RECEIVING OF BOOKS OF ACCOUNT BY THE JURISDICTIONAL A.O. SHALL HAVE TO BE CONSTRUE AS DATE OF INITIATION OF SEARCH . SINCE THE BOOKS OF ACCOUNT/IMPOUNDED DOCUMENTS HAVE BEEN RECE IVED BY THE A.O. ON 29.08.2013, THEREFORE, A.Y. 2014-2015 W ILL BE THE YEAR OF SEARCH AND ASSESSMENTS UNDER SECTION 153C O F THE I.T. ACT SHOULD HAVE BEEN COMPUTED FOR A.YS. 2008-2009 T O 2013- 2014. SINCE, NO NOTICE UNDER SECTION 153C HAVE BEEN ISSUED FOR 10 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ASSESSMENT YEAR IN APPEAL, THEREFORE, THE ASSESSMEN T ORDER IS ILLEGAL, VOID AND BAD IN LAW. HE HAS RELIED UPON TH E JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF PR. CIT VS. SARWAR AGENCY P. LTD., (2017) 397 ITR 400 (DEL.), ORDER OF ITAT, DELHI, B-BENCH IN THE CASE OF ACIT VS. EMPIRE CASTING PVT. LTD., N EW DELHI IN ITA.NO.4018/DEL./2011 AND C.O.NO.207/DEL./2012 DATE D 21.11.2017 AND ORDER OF ITAT, DELHI, C-BENCH IN THE CASE OF PAVITRA REALCON PVT. LTD., NEW DELHI VS. ACIT, CENT RAL CIRCLE-32, NEW DELHI IN ITA.NOS. 3185, 3186 & 3253/DEL./2015 D ATED 04.10.2017. HE HAS ALSO REFERRED TO MEMORANDUM EXPL AINING FINANCE BILL 2017 IN WHICH IT IS PROVIDED THAT AMENDMENT IN SECTION 153C SHALL APPLY IN RESPECT OF SEARCH CONDU CTED OR REQUISITION MADE ON OR AFTER 1 ST DAY OF APRIL, 2017. 6. ON THE OTHER HAND, LD. D.R. SUBMITTED THAT SECT ION 153A(1) DEALS WITH THE YEARS OF REOPENING IN THE CA SE OF SEARCH PROCEEDING AND AS PER SECTION 153C(1) AFTER THE SAT ISFACTION, THE A.O. SHALL PROCEED IN ACCORDANCE WITH PROVISIONS OF SECTION 153A(1) OF THE I.T. ACT. SECTION 153A(1)(B) IS VERY CLEAR THAT A.O. 11 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. SHALL ASSESS OR RE-ASSESS THE TOTAL INCOME OF 06 AS SESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SEARCH IS CONDUCTED. NO WHERE THE SECTION CONTAINS THE WORD DATE OF INITIATION OF THE SEARCH WHICH ARE REFERRED TO BY THE FIRST PROVISO TO SECTI ON 153C OF THE I.T. ACT. HENCE, THE FIRST PROVISO TO SECTION 153C OF THE I.T. ACT IS ONLY REFERRING TO THE ABATEMENT OF THE EXISTING PROCEEDINGS MENTIONED IN THE SECOND PROVISO TO SECTION 153A(1) OF THE I.T. ACT, AS CLEARLY MENTIONED IN THE FIRST PROVISO AND FURTHER CLARIFIED BY USAGE OF WORDS THE DATE OF INITIATION OF SEARCH WHICH ARE NO WHERE MENTIONED IN SECTION 153A(1) OF THE I.T. ACT. EVEN AFTER THE AMENDMENT IN SECTION 153C, THE FIRST PROVISO STANDS AS IT IS IN THE STATUTE WHICH MAKES IT FURTH ER CLEAR THAT FIRST PROVISO TO SECTION 153C ALWAYS REFERRED TO AB ATEMENT OF PROCEEDINGS AS MENTIONED IN THE SECOND PROVISO SECT ION 153A(1) OF THE I.T. ACT, OTHERWISE, THE CURRENT 153C SHALL HAVE MAJOR INCONGRUITY AS TO WHETHER SIX YEARS WOULD BE RECKON ED FROM THE DATE OF SEARCH AS MENTIONED IN THE AMENDED SECTION 153C(1) OR 12 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. FROM THE DATE OF HANDING OVER OF THE DOCUMENTS AS M ENTIONED IN THE FIRST PROVISO OF SECTION 153C WHICH REMAINED UN AMENDED. HE HAS, THEREFORE, SUBMITTED THAT ASSESSMENT HAVE B EEN RIGHTLY FRAMED UNDER SECTION 153A(1)(B) OF THE I.T. ACT, 19 61. 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. SECTI ON 153C OF THE I.T. ACT, 1961, AS IS APPLICABLE TO ASS ESSMENT YEAR UNDER APPEAL READS AS UNDER : 153C. ASSESSMENT OF INCOME OF ANY OTHER PERSON.- (1) NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 139, SECTION 147, SECTION 148, SECTION 149, SECTION 151 AND SECT ION 153, WHERE THE ASSESSING OFFICER IS SATISFIED THAT ANY M ONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THI NG OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BEL ONGS OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED T O IN SECTION 153A, THEN THE BOOKS OF ACCOUNT OR DOCUMENT S OR ASSETS SEIZED OR REQUISITIONED SHALL BE HANDED OVER TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON AND THAT ASSESSING OFFICER SHALL PROCEED AGAINST EA CH SUCH OTHER PERSON AND ISSUE SUCH OTHER PERSON NOTICE AND ASSESS OR REASSESS INCOME OF SUCH OTHER PERSON IN ACCORDAN CE WITH THE PROVISIONS OF SECTION 153A : 13 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. PROVIDED THAT IN CASE OF SUCH OTHER PERSON, THE REF ERENCE TO THE DATE OF INITIATION OF THE SEARCH UNDER SECTION 132 OR MAKING OF REQUISITION UNDER SECTION 132A IN THE SEC OND PROVISO TO SUB-SECTION (1) OF SECTION 153A SHALL BE CONSTRUED AS REFERENCE TO THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON. [PROVIDED FURTHER THAT THE CENTRAL GOVERNMENT MAY BY RULES MADE BY IT AND PUBLISHED IN THE OFFICIAL GAZETTE, S PECIFY THE CLASS OR CLASSES OF CASES IN RESPECT OF SUCH OTHER PERSON, IN WHICH THE ASSESSING OFFICER SHALL NOT BE REQUIRED T O ISSUE NOTICE FOR ASSESSING OR REASSESSING THE TOTAL INCOM E FOR SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSME NT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SEARCH IS CONDUCTED OR REQUISITION IS MADE EXCEPT IN CASES WH ERE ANY ASSESSMENT OR REASSESSMENT HAS ABATED .] [(2) WHERE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED AS REFERRED TO IN SUB-SECTION (1) HAS OR HAVE BEEN RECEIVED BY THE ASSESSING OFFICER HAVING JURIS DICTION OVER SUCH OTHER PERSON AFTER THE DUE DATE FOR FURNI SHING THE RETURN OF INCOME FOR THE ASSESSMENT YEAR RELEVANT T O THE PREVIOUS YEAR IN WHICH SEARCH IS CONDUCTED UNDER SE CTION 14 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. 132 OR REQUISITION IS MADE UNDER SECTION 132A AND I N RESPECT OF SUCH ASSESSMENT YEAR (A) NO RETURN OF INCOME HAS BEEN FURNISHED BY SUCH OTHER PERSON AND NO NOTICE UNDER SUB-SECTION (1) OF SECTI ON 142 HAS BEEN ISSUED TO HIM, OR (B) A RETURN OF INCOME HAS BEEN FURNISHED BY SUCH O THER PERSON BUT NO NOTICE UNDER SUB-SECTION (2) OF SECTI ON 143 HAS BEEN SERVED AND LIMITATION OF SERVING THE NOTIC E UNDER SUB-SECTION (2) OF SECTION 143 HAS EXPIRED, OR (C) ASSESSMENT OR REASSESSMENT, IF ANY, HAS BEEN MA DE, BEFORE THE DATE OF RECEIVING THE BOOKS OF ACCOUNT O R DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON, SUCH ASSESSING OFFICER SHALL ISSUE THE NOTI CE AND ASSESS OR REASSESS TOTAL INCOME OF SUCH OTHER PERSO N OF SUCH ASSESSMENT YEAR IN THE MANNER PROVIDED IN SECTION 1 53A. 7.1. THE HONBLE DELHI HIGH COURT IN THE CASE OF P R. CIT VS. SARWAR AGENCY P. LTD., (2017) 397 ITR 400 (DELH I.) (HC) (SUPRA), CONSIDERING THE IDENTICAL ISSUE HELD AS UN DER : 15 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. SUB-SECTION (1) OF SECTION 153C OF THE INCOME-TAX ACT, 1961 PROVIDES THAT THE ASSESSMENT OR REASSESSMENT OF THE INCOME OF THE 'OTHER PERSON' WOULD BE IN ACCORDANCE WITH THE PROVISIONS OF SECTION 153A. THE FIRST PROVISO T O SUB- SECTION (1) OF SECTION 153C FURTHER STATES THAT, IN CASE OF SUCH OTHER PERSON, THE REFERENCE TO THE DATE OF INI TIATION OF SEARCH IN THE SECOND PROVISO TO SECTION 153A(L) 'SH ALL BE CONSTRUED AS REFERENCE TO THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIO NED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON'. IN TERMS OF SECTION 153A(1)(B) OF THE ACT. THE ASSESSING OFFICER SHALL ASSESS OR REASSESS THE TOTA L INCOME OF SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WH ICH THE SEARCH WAS CONDUCTED. THE SECOND PROVISO TO SUB-SEC TION (1) OF SECTION 153A OF THE ACT STATES THAT ASSESSME NT OR REASSESSMENT RELATING TO ANY ASSESSMENT YEAR FALLIN G WITHIN THE PERIOD OF SIX ASSESSMENT YEARS REFERRED TO IN THE SAID SUB-SECTION PENDING ON THE DATE OF INITIATION OF THE SEARCH UNDER SECTION 132, WOULD ABATE. IN CIT V. RR J SECU- RITIES LTD. [2016] 380 ITR 612 (DELHI), THE COURT H ELD THAT IN THE CONTEXT OF PROCEEDINGS UNDER SECTION 153C OF TH E ACT, THE REFERENCE TO THE DATE OF INITIATION OF THE SEAR CH IN THE SECOND PROVISO TO SECTION 153A HAS TO BE CONSTRUED AS THE DATE ON WHICH THE ASSESSING OFFICER RECEIVES THE DO CUMENTS 16 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. OR ASSETS FROM THE ASSESSING OFFICER OF THE SEARCHE D PERSON, THAT FURTHER PROCEEDINGS, BY VIRTUE OF SECTION 153( 1) OF THE ACT, WOULD HAVE TO BE IN ACCORDANCE WITH SECTION 15 3A OF THE ACT AND THE REFERENCE TO THE DATE OF SEARCH WOU LD HAVE TO BE CONSTRUED AS THE REFERENCE TO THE DATE OF REC ORDING OF SATISFACTION. IT WOULD FOLLOW' THAT THE SIX ASSESSM ENT YEARS FOR WHICH ASSESSMENTS OR REASSESSMENTS COULD BE MA DE UNDER SECTION 153C OF THE ACT WOULD ALSO HAVE TO BE CONSTRUED WITH REFERENCE TO THE DATE OF HANDING AVE R OF ASSETS OR DOCUMENTS TO THE ASSESSING OFFICER OF THE ASSESSEE. THE AMENDMENT IN SECTION 153C OF THE ACT BY THE FIN ANCE ACT, 2017 WITH EFFECT FROM APRIL 1, 2017 TO THE EFF ECT THAT THE BLOCK PERIOD FOR THE PERSON IN RESPECT OF WHOM THE SEARCH WAS CONDUCTED AS WELL AS THE 'OTHER PERSON' WOULD BE THE SAME SIX ASSESSMENT YEARS IMMEDIATELY PRECED ING THE YEAR OF SEARCH IS PROSPECTIVE. A SEARCH UNDER SECTION 132 OF THE INCOME-TAX ACT, 1 961 TOOK PLACE ON NOVEMBER 11,2010 IN THE T GROUP OF CASES. THE DOCUMENTS PERTAINING TO THE ASSESSEE WERE FORWARDED ALONG WITH A SATISFACTION NOTE BY THE ASSESSING OFF ICER OF THE PARTY IN RESPECT OF WHICH THE SEARCH WAS CONDUC TED TO THE ASSESSING OFFICER OF THE*ASSESSEE ON JANUARY 3, 2013. 17 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. THE ASSESSING OFFICER OF THE ASSESSEE ISSUED NOTICE TO THE ASSESSEE UNDER SECTION 153C OF THE ACT ON JANUARY 4 ,2013 FOR THE ASSESSMENT YEAR 2006-07. THE TRIBUNAL HELD THAT THE NOTICE ISSUED TO THE ASSESSEE UNDER SECTION 153 C OF THE ACT FOR THE ASSESSMENT YEAR 2006-07, WAS WITHOUT JURISDICTION SINCE THE ASSESSMENT YEAR WAS BEYOND T HE PURVIEW OF ISSUANCE OF NOTICE IN TERMS OF THE PROVI SION UNDER SECTION 153C OF THE ACT. ON APPEAL: HELD ACCORDINGLY, DISMISSING THE APPEAL, THAT THE T RIBUNAL WAS JUSTIFIED IN HOLDING THAT THE NOTICE ISSUED TO THE ASSESSEE UNDER SECTION 153C OF THE ACT FOR THE ASSE SSMENT YEAR 2006-07 WAS WITHOUT JURISDICTION SINCE THE ASS ESS- MENT YEAR WAS BEYOND THE PURVIEW OF ISSUANCE OF NOT ICE IN TERMS OF THE PROVISION. 7.2. THE ITAT, DELHI, B-BENCH IN THE CASE OF ACIT, C.C.-2, NEW DELHI VS. EMPIRE CASTING PVT. LTD., NEW DELHI (SUPRA), HELD IN PARAS 5 AND 5.1 AS UNDER : 5. WE HAVE HEARD THE RIVAL SUBMISSION ON THIS ISS UE AND ALSO PERUSED THE JUDGMENT DATED 30TH OCTOBER, 2015 OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CI T VS RRJ SECURITIES IN ITA NO. 164/2015 AND ITA NO. 175 TO 18 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. 177/2015. FOR READY REFERENCE, THE RELEVANT PARA OF THE JUDGMENT IS REPRODUCED AS UNDER: '24. AS DISCUSSED HEREINBEFORE, IN TERMS OF PROVISO TO SECTION 153C OF THE ACT, A REFERENCE TO THE DATE OF THE SEARCH UNDER THE SECOND PROVISO TO SECT ION 153A OF THE ACT HAS TO BE CONSTRUED AS THE DATE OF HANDING OVER OF ASSETS/DOCUMENTS BELONGING TO THE ASSESSEE (BEING THE PERSON OTHER THAN THE ONE SEARCHED) TO THE AO HAVING JURISDICTION TO ASSESS T HE SAID ASSESSEE. FURTHER PROCEEDINGS, BY VIRTUE OF SECTION 153C(1) OF THE ACT, WOULD HAVE TO BE IN ACCORDANCE WITH SECTION 153A OF THE ACT AND THE REFERENCE TO THE DATE OF SEARCH WOULD HAVE TO BE CONSTRUED AS THE REFERENCE TO THE DATE OF RECORDING OF SATISFACTION. IT WOULD FOLLOW THAT THE SIX ASSESSME NT YEARS FOR WHICH ASSESSMENTS/ REASSESSMENTS COULD BE MADE UNDER SECTION 153C OF THE ACT WOULD ALSO HAVE TO BE CONSTRUED WITH REFERENCE TO THE DATE OF HANDI NG OVER OF ASSETS/DOCUMENTS TO THE AO OF THE ASSESSEE. IN THIS CASE, IT WOULD BE THE DATE OF THE RECORDING OF SATISFACTION UNDER SECTION 153C OF THE ACT, I.E., 8 TH 19 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. SEPTEMBER, 2010. IN THIS VIEW, THE ASSESSMENTS MADE IN RESPECT OF ASSESSMENT YEAR 2003-04 AND 2004-05 WOULD BE BEYOND THE PERIOD OF SIX ASSESSMENT YEARS AS RECKONED WITH REFERENCE TO THE DATE OF RECORDING OF SATISFACTION BY THE AO OF THE SEARCHED PERSON. IT I S CONTENDED BY THE REVENUE THAT THE RELEVANT SIX ASSESSMENT YEARS WOULD BE THE ASSESSMENT YEARS PRIOR TO THE ASSESSMENT YEAR RELEVANT TO THE PREVIO US YEAR IN WHICH THE SEARCH WAS CONDUCTED. IF THIS INTERPRETATION AS CANVASSED BY THE REVENUE IS ACCEPTED, IT WOULD MEAN THAT WHEREAS IN CASE OF A PERSON SEARCHED, ASSESSMENTS IN RELATION TO SIX PREVIOUS YEARS PRECEDING THE YEAR IN WHICH THE SEAR CH TAKES PLACE CAN BE REOPENED BUT IN CASE OF ANY OTHE R PERSON, WHO IS NOT SEARCHED BUT HIS ASSETS ARE SEIZ ED FROM THE SEARCHED PERSON, THE PERIOD FOR WHICH THE ASSESSMENTS COULD BE REOPENED WOULD BE MUCH BEYOND THE PERIOD OF SIX YEARS. THIS IS SO BECAUSE THE DATE OF HANDING OVER OF ASSETS/DOCUMENTS OF A PERSON, OTHER THAN THE SEARCHED PERSON, TO THE AO WOULD BE SUBSEQUENT TO THE DATE OF THE SEARCH. THIS , IN OUR VIEW, WOULD BE CONTRARY TO THE SCHEME OF 20 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. SECTION 153C(1) OF THE ACT, WHICH CONSTRUES THE DAT E OF RECEIPT OF ASSETS AND DOCUMENTS BY THE AO OF THE ASSESSEE (OTHER THAN ONE SEARCHED) AS THE DATE OF T HE SEARCH ON THE ASSESSEE. THE RATIONALE APPEARS TO BE THAT WHEREAS IN THE CASE OF A SEARCHED PERSON THE A O OF THE SEARCHED PERSON ASSUMES POSSESSION OF SEIZED ASSETS/DOCUMENTS ON SEARCH OF THE ASSESSEE; THE SEIZED ASSETS/DOCUMENTS BELONGING TO A PERSON OTHER THAN A SEARCHED PERSON COME INTO POSSESSION OF THE AO OF THAT PERSON ONLY AFTER THE AO OF THE SEARCHED PERSON IS SATISFIED THAT THE ASSETS/DOCUMENTS DO NO T BELONG TO THE SEARCHED PERSON. THUS, THE DATE ON WHICH THE AO OF THE PERSON OTHER THAN THE ONE SEARCHED ASSUMES THE POSSESSION OF THE SEIZED ASSET S WOULD BE THE RELEVANT DATE FOR APPLYING THE PROVISIONS OF SECTION 153A OF THE ACT. WE, THEREFOR E, ACCEPT THE CONTENTION THAT IN ANY VIEW OF THE MATTE R, ASSESSMENT FOR AY 2003-04 AND AY 2004-05 WERE OUTSIDE THE SCOPE OF SECTION 153C OF THE ACT AND TH E AO HAD NO JURISDICTION TO MAKE AN ASSESSMENT OF THE ASSESSEE'S INCOME FOR THAT YEAR.' 21 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. 5.1. THE FACT THAT SATISFACTION U/S 153C OF THE AC T IN THE CASE WAS RECORDED ON 2ND NOVEMBER, 2009, IS NOT DIS PUTED BY BOTH THE PARTIES. IN THE JUDGMENT CITED ABOVE, T HE HON'BLE HIGH COURT HAS HELD THAT WHEN THE ASSESSING OFFICER OF SEARCHED PERSON AND SUCH OTHER PERSON IN WHOSE CASE PROCEEDINGS UNDER SECTION 153C ARE INITIATED, IS THE SAME OFFICER, THEN THE DATE OF RECORDING OF SATISFACTION WOULD BE CONSTRUED AS THE DATE OF HANDING OVER OF THE SEIZED RECORDS BY THE ASSESSING OFFICER OF SEARCHED PERSON TO THE ASSESSING OFFICER OF SUCH OTHER PERSON IN WHOSE CAS E PROCEEDINGS UNDER SECTION 153C ARE INITIATED. SINCE THE HON'BLE HIGH COURT HAS ALREADY CONSTRUED THE RELEVA NT PROVISIONS, WE DO NOT CONCUR WITH THE ARGUMENTS ADV ANCED BY THE LD. CIT DR ON THIS COUNT. RESPECTFULLY FOLLO WING THE ABOVE JUDGMENT OF THE HON'BLE HIGH COURT IN RRJ SEC URITIES (SUPRA) THE DATE OF HANDING OVER OF SEIZED MATERIAL / RECORD BY THE ASSESSING OFFICER OF SEARCHED PARTY TO THE A SSESSING OFFICER OF THE ASSESSEE WOULD BE 2ND NOVEMBER, 2009 . FURTHER, FOLLOWING THE JUDGMENT, THE SIX ASSESSMENT YEARS FOR WHICH ASSESSMENT/RE-ASSESSMENT COULD BE MADE U/ S 153C OF THE ACT WOULD ALSO HAVE TO BE CONSTRUED AS FROM THE REFERENCE DATE OF HANDING OVER OF ASSETS/DOCUMENTS TO THE ASSESSING OFFICER OF THE ASSESSEE. IN THE CASE IN H AND, IT WOULD BE THE DATE OF RECORDING SATISFACTION UNDER SECTION 153 OF THE ACT I.E. 2ND NOVEMBER, 2009, AND THEREFORE, SIX 22 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ASSESSMENT YEARS WHICH WOULD ELIGIBLE FOR ASSESSMEN T/RE- ASSESSMENT WOULD COMMENCE FROM ASSESSMENT YEAR 2004 - 05 TO ASSESSMENT YEAR 2009-10. THE ASSESSMENT/RE- ASSESSMENT IN RESPECT OF ASSESSMENT YEAR 2003-04 WO ULD, THUS, BE BEYOND THE PERIOD OF SIX ASSESSMENT YEAR A S RECKONED WITH REFERENCE TO THE DATE OF SATISFACTION RECORDED BY THE ASSESSING OFFICER OF THE SEARCHED PERSON. WE , THEREFORE, HOLD THAT THE LEARNED CIT(A) WAS QUITE J USTIFIED IN CONSIDERING THE ASSESSMENT FOR ASSESSMENT YEAR 2003 -04 AS OUTSIDE THE SCOPE OF SECTION 153C OF THE ACT, BEING BARRED BY LIMITATION AND WITHOUT JURISDICTION. ACCORDINGLY , THE IMPUGNED ASSESSMENT ORDER IS LIABLE TO BE QUASHED. WE DECIDE ACCORDINGLY. 7.3. THE ITAT, DELHI, C-BENCH, IN THE CASE OF PAVI TRA REALCON PVT. LTD., NEW DELHI VS. ACIT, C.C.32, NEW DELHI (SUPRA) UNDER THE SAME CIRCUMSTANCES HELD THAT ASSESSMENT COMPLETED UNDER SECTION 143(3) IS INVALID. THE RELEVANT PARA-16 OF THE ORDER IS REPRODUCED AS UNDER : 16. WE FIND THE YEAR FOR WHICH THE IMPUGNED ASSESSMENT ORDER HAS BEEN PASSED U/S 143(3) IS FOR ASSESSMENT YEAR 2011-12. THIS YEAR FALLS WITHIN THE PERIOD OF SIX YEARS WHEN COUNTED FROM THE DATE OF RECORDING OF 23 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. SATISFACTION NOTE U/S 153/153C OF THE I.T. ACT WHIC H IS DEEMED DATE OF SEARCH. THE ACT HAS BEEN AMENDED RECENTLY BY THE FINANCE ACT, 2017 WITH PROSPECTIVE EFFECT I.E., FROM ASSESSMENT YEAR 2018-19. THUS, THE PERI OD IS SAME NOW ONLY FOR THE SEARCHED PARTIES AS WELL A S THE OTHER PERSON AS PER THE AMENDED PROVISIONS OF THE SAID SECTION. IN VIEW OF THE ABOVE, WE HOLD THA T THE ASSESSMENT COMPLETED U/S 143(3) IS INVALID. 8. IT IS NOT IN DISPUTE THAT SEARCH WAS CONDUCTED ON KRRISH GROUP OF CASES ON 09.11.2011. THE IMPOUNDED DOCUMENTS HAVE BEEN RECEIVED BY THE A.O. ON 29.08.2 013. THE SATISFACTION UNDER SECTION 153C HAVE BEEN RECORDED ON 03.10.2013. THE A.O. PASSED THE ASSESSMENT ORDER UN DER SECTION 153B(1)(B) OF THE I.T. ACT, CONSIDERING THE ASSESSMENT YEAR UNDER APPEAL I.E., A.Y. 2012-2013 TO BE THE YE AR OF SEARCH. HOWEVER, THE FIRST PROVISO TO SECTION 153C OF THE I .T. ACT PROVIDES THAT THE 06 ASSESSMENT YEARS FOR WHICH ASS ESSMENTS OR RE-ASSESSMENTS COULD BE MADE UNDER SECTION 153C OF THE I.T. ACT, WOULD ALSO HAVE TO BE CONSTRUED WITH REFERENCE TO THE DATE OF HANDING-OVER OF THE ASSETS OR DOCUMENTS TO THE A .O. OF THE 24 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ASSESSEE. THEREFORE, THE 06 ASSESSMENT YEARS UNDER SECTION 153C OF I.T. ACT IN THE CASE OF ASSESSEE WOULD BE A .Y. 2008-2009 TO 2013-2014. THE A.O, THEREFORE, SHALL HAVE TO PAS S THE ASSESSMENT ORDER UNDER SECTION 153C OF THE I.T. ACT . HOWEVER, A.O. HAS NOT ISSUED ANY NOTICE UNDER SECTION 153C O F THE I.T. ACT BEFORE INITIATING THE PROCEEDINGS AGAINST THE ASSES SEE WHICH IS ALSO ADMITTED BY THE A.O. IN REPLY TO THE ASSESSEE UNDER RTI ACT. THE AMENDMENT IN SECTION 153C OF THE I.T. ACT BY TH E FINANCE ACT, 2017, W.E.F. 01.04.2017 TO THE EFFECT THAT BLO CK PERIOD FOR THE PERSON IN RESPECT OF WHOM THE SEARCH WAS CONDUC TED AS WELL AS THE OTHER PERSON WOULD BE THE SAME SIX ASSES SMENT YEAR IMMEDIATELY PRECEDING THE YEAR OF SEARCH IS PROSPEC TIVE IN NATURE. THE ISSUE HAVE BEEN DEALT IN DETAIL BY THE HONBLE JURISDICTIONAL DELHI HIGH COURT IN THE CASE OF PR. CIT VS. SARWAR AGENCY P. LTD., (SUPRA) AND BY ITAT, DELHI, B-BENCH , IN THE CASE OF EMPIRE CASTING PVT. LTD., NEW DELHI VS. ACIT, C. C.2, NEW DELHI AND PAVITRA REALCON PVT. LTD., NEW DELHI VS. ACIT, C.C.32, NEW DELHI (SUPRA). THE A.O, THEREFORE, SHOULD HAVE FRAMED THE ASSESSMENT UNDER SECTION 153C OF THE I.T. ACT IN TH E CASE OF THE 25 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ASSESSEE AND AT THE TIME OF INITIATING THE PROCEEDI NG AGAINST THE ASSESSEE, SHOULD HAVE ISSUED NOTICE UNDER SECTION 1 53C OF THE I.T. ACT WHICH HAVE NOT BEEN DONE IN THIS CASE. THE ISSUE OF NOTICE UNDER SECTION 153C IS MANDATORY AND A CONDIT ION PRECEDENT FOR TAKING ACTION AGAINST THE ASSESSEE UN DER SECTION 153C OF THE I.T. ACT. THE ASSESSMENT ORDER, THEREFO RE, VITIATE, VOID, ILLEGAL AND BAD IN LAW AND CANNOT BE SUSTAINE D. THE CONTENTION OF THE LD. D.R. HAVE ALREADY TAKEN CARE IN THE ABOVE JUDGMENTS. 9. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND QUASH THE SAME AND ALLOW THE ADDITIONAL GROUNDS OF APPEALS. RESULTANTLY, ALL ADDITIONS STAN DS DELETED. SINCE THE ASSESSMENT ORDER IS SET ASIDE ON LEGAL GR OUNDS, THEREFORE, THERE IS NO NEED TO DECIDE THE ADDITION ON MERIT WHICH HAS BEEN LEFT WITH ACADEMIC DISCUSSION ONLY. 10. IN THE RESULT, ITA.NO.504/DEL./2013 OF THE ASS ESSEE IS ALLOWED. 26 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. ITA.NO.503/DEL./2015 SHRI RANJAN GUPTA A.Y. 201 2-2013 11. IN THIS APPEAL, THE FACTS AND ISSUE IS IDENTIC AL. THE ASSESSEE ALSO MOVED FOR ADMISSION OF THE ADDITIONAL GROUNDS AS HAVE BEEN CONSIDERED IN THE CASE OF M/S. BNB INVEST MENT AND PROPERTIES LTD. FOLLOWING THE REASONS FOR DECISION IN THE CASE OF M/S. BNB INVESTMENT AND PROPERTIES LTD., (SUPRA), W E ADMIT THE ADDITIONAL GROUNDS OF APPEAL, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND QUASH THE SAME. RESULTANTLY, DELETE THE ENTIRE ADDITION. 12. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 13. TO SUM-UP, BOTH THE APPEALS OF THE ASSESSEES A RE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 27 TH JUNE, 2018 VBP/- 27 ITA.NO.504/DEL./2013 & ITA.NO.503/DEL./2015 M/S. BN B INVESTMENT & PROPERTIES LTD., GURGAON & SHRI RANJAN GUPTA, NEW DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT A BENCH 6. GUARD FILE // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.