Nagavenderao Venkat Rao , Hyderabad V. Income Tax Officer, Ward-13(3), Hyderabad

ITA 513/Hyd/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6379 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2010-2011
• Appeal Filed On: 09-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Period of limitation
• Section: 143(3); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD (Through Virtual Hearing) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA No. 513/Hyd/2019 AY: 2010-11 Nagavenderrao Venkat Rao, Hyderabad. PAN: ABJPM 6387 J VS. Income Tax Officer, Ward-13(3), Hyderabad. (Appellant) (Respondent) Assessee by Sri Mohd. Afzal Revenue by Sri B. Balakrishna, DR Date of hearing: 12/10/2021 Date of pronouncement: 15/12/2021 ORDER PER A. MOHAN ALANKAMONY, A.M: This appeal is filed by the assessee against the order of the Ld. CIT (A)-4, Hyderabad in appeal No. 4/10230/17-18/W- 13(3),Hyd/CIT(A)-4/Hyd/18-19, dated 14/03/2019 passed U/s. 143(3) r.w.s 153C of the Act for the AY: 2010-11. 2. The assessee has raised the following grounds in his appeal: 2 (i) The Ld. CIT (A) has erred in upholding the order of the ld. AO who had erroneously initiated proceedings U/s. 153C of the Act. (ii) The Ld. CIT (A) has erred in confirming the order of the Ld. AO who had made addition of Rs. 67 lakhs under the head “undisclosed income” on account of capitation fees paid. (iii) The Ld. CIT (A) has erred in confirming the order of the Ld. AO who had made addition of Rs. 1,90,401/- towards undisclosed income on account of repayment of education loan. (iv) The Ld. CIT (A) has erred in confirming the order of the Ld. AO who had made addition of Rs. 1,70,000/- towards undisclosed income towards loan obtained from his daughter. 3. The brief facts of the case are that the assessee is a pensioner also earning income from other sources filed his return of income for the AY 2010-11. Subsequently, a search was conducted in the case of M/s. Arihant Educational Society on 25/07/2013. During the course of search, it was revealed that the assessee had paid capitation fees to M/s. Arihant Educational Society for obtaining admission of his son in the Medical College run by the Society. Thereafter, the Ld. DCIT, Central Circle-2(2), Hyderabad recorded satisfaction in the case of the assessee 3 on 26/08/2016 and proceedings U/s. 153C of the Act was initiated. Finally, the assessment was completed vide order dated 19/12/2017 U/s. 143(3) r.w.s 153C of the Act wherein the above-mentioned addition was made by the Ld.AO which was subsequently confirmed by the Ld.CIT(A). 4. At the outset in regard to initiation of proceedings U/s.153C of the Act, the Ld. AR submitted before us that the date of satisfaction recorded by the Assessing Officer of the searched person was 26/08/2016. Therefore, for the purpose of section 153C of the Act, previous in which search is conducted or requisition is made would be 01/04/2016 to 31/03/2017 and the relevant six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made would be AY 2011-12 to 2016-17. It was therefore pleaded that the notice issued U/s. 153C of the Act to the assessee is beyond the period of limitation as the assessment made in the case of the assessee is for the assessment year 2010-11. It was therefore prayed that the assessment order passed by the Ld. AO may be quashed. The Ld. DR could not controvert to the submission of the Ld.AR. 5. For the sake of convince the relevant portion of Section 153C(1) of the Act is extracted herein below for reference:- 4 “153C. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that,— (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years referred to in sub-section (1) of section 153A:” 6. We have heard the rival submissions and carefully perused the materials on record. In the case of the assessee the requisition was made by the Ld. DCIT, Central Circle-2(2), Hyderabad on 26/08/2016 which falls in the previous year 1/4/2016 to 31/3/2017. Therefore, as pointed out by the Ld.AR the six assessment years immediately preceding the AY relevant to the previous year vis-à-vis 2017-18 will be AY 2011-12 to AY 2016-17. In the case of the assessee it is apparent that notice U/s. 153C of the Act is issued for the AY 2010-11 which is 5 barred by limitation. Hence, we do not find any hesitation to hold the matter in favour of the assessee. Accordingly, the order of the Ld. AO is hereby quashed for want of jurisdiction. Since the entire assessment order is quashed, we do not find it necessary to decide the other grounds raised by the assessee in his appeal. 7. In the result, appeal of the assessee is allowed. Pronounced in the open Court on 15 th December, 2021. Sd/- Sd/- (CHANDRA MOHAN GARG) (A. MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 15 th December, 2021. OKK Copy to:- 1) Nagavenderrao Venkat Rao Minampalli C/o. Mohd Afzal, Advocate, 402, Sherson’s Residency, 11-5-465, Criminal Court Road, Red Hills, Hyderabad-04. 2) Income Tax Officer, Ward-13(3), Aayakar Bhavan, Hyderabad. 3) The CIT (A)-4, Hyderabad. 4) The Pr. CIT-4, Hyderabad. 5) The DR, ITAT, Hyderabad 6) Guard File