Appeal Details
Counselvise Citation
[2019] 112 COUNSELVISE.COM (IT) 4385 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 9 month(s)
Appellant
Respondent
Appeal Type
Income Tax (Search & Seizure) Appeal
Pronouncement Date
27-11-2019
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
C
Next Hearing Date
21-11-2019
Assessment Year
2006-2007
Appeal Filed On
27-02-2017
Judgement Text
, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER I.T.(SS).A. NO. 113/AHD/2017 & I.T.A. NO. 3474/AHD/ 2016 ( ASSESSMENT YEARS : 2006-07 & 2005-06) NEESA TECHNOLOGIES PVT. LTD. CAMBAY GRAND, 9 TH FLOOR, B/H. PERD CENTRE, NEAR SOLA OVER BRIDGE, THALTEJ, AHMEDABAD 380054 / VS. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2(2), AHMEDABAD / / PAN/GIR NO. : AABCG5430A ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI U. S. BHATI WITH SHRI ABHIMANYU SINGH BHATI, A.RS. / RESPONDENT BY: SHRI O. P. SHARMA, CIT.DR WITH SHRI L. P. JAIN, SR. D.R. DATE OF HEARING 21/11/2019 !'# / DATE OF PRONOUNCEMENT 27/11/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE COMMI SSIONER OF INCOME TAX (APPEALS)-12, AHMEDABAD (CIT(A) IN SHO RT), DATED 02.08.2016 & 02.11.2016 ARISING IN THE ASSESSMENT O RDERS BOTH DATED 25.09.2013 PASSED BY THE ASSESSING OFFICER (A O) UNDER S. 153C R.W.S. 153A R.W.S. 143(3) R.W.S. 145(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AYS. 2005-06 & 2006-07. IT(SS)A NO. 113/AHD/17 & ITA NO. 3474/AHD/16 (NEESA TECHNOLOGIES PVT. LTD.) A.Y. 2006-07 & 2005- 06 - 2 - 2. ALONGWITH MAIN GROUNDS OF APPEAL, THE ASSESSEE H AS ALSO RAISED ADDITIONAL GROUNDS OF APPEAL INTER ALIA ON THE GROUND THAT THE ASSESSMENT ORDER PASSED UNDER S.153C OF THE ACT PAS SED BY THE AO IS WITHOUT JURISDICTION AND VOID AB INITIO AND THUS LIABLE TO BE QUASHED. 3. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE FIRSTLY POINTED OUT THAT A BRIEF DELAY IN FILING TH E APPEAL BEFORE THE TRIBUNAL ALREADY STANDS CONDONED IN THE EARLIER HEA RING BEFORE THE TRIBUNAL. THE LEARNED AR THEREFORE SUBMITTED THAT CAPTIONED APPEALS CONCERNING AYS. 2005-06 & 2006-07 ARE LIABL E TO BE QUASHED AS THE AO COULD NOT HAVE VALIDLY INITIATED NOTICE UNDER S.153C OF THE ACT FOR FRAMING ASSESSMENT OWING TO E MBARGO OF LIMITATION PLACED UNDER S.153C OF THE ACT. IT WAS SUBMITTED THAT THE DATE OF SEARCH IN THE CASE OF THE SEARCHED PERSON ( OTHER THAN ASSESSEE) IS 08.09.2010. HOWEVER, SATISFACTION TOW ARDS ESCAPEMENT IN THE HANDS OF THE ASSESSEE HEREIN AND CONSEQUENT NOTICE UNDER S.153C OF THE ACT ON THE ASSESSEE WAS ISSUED ON 06 .11.2012. IT WAS CONTENDED THAT AS NO SEARCH OPERATION UNDER S.132 O F THE ACT WAS CARRIED OUT IN THE CASE OF THE ASSESSEE. AS PER PR OVISO TO SECTION 153C OF THE ACT, THE DATE OF HANDING OVER BOOKS OR DATE OF RECORDING OF SATISFACTION UNDER S.153C OF THE ACT SHOULD BE T REATED AS DATE OF INITIATION OF SEARCH FOR DETERMINATION OF SIX ASSES SMENT YEARS AS PROVIDED UNDER S.153A(1)(B) OF THE ACT. IN VIEW OF THE AFORESAID POSITION, AYS. 2005-06 & 2006-07 WOULD BE OUT OF PU RVIEW OF SECTION 153C R.W.S. 153A OF THE ACT. THEREFORE, TH E NOTICE ISSUED UNDER S.153C OF THE ACT IS INCOMPETENT IN LAW AND H ENCE THE ASSESSMENT ORDER PASSED UNDER S.153C OF THE ACT CON CERNING AYS. 2005-06 & 2006-07 ARE LIABLE TO BE QUASHED IN LIMINE. IT(SS)A NO. 113/AHD/17 & ITA NO. 3474/AHD/16 (NEESA TECHNOLOGIES PVT. LTD.) A.Y. 2006-07 & 2005- 06 - 3 - 4. THE LEARNED DR RELIED UPON THE ORDERS OF THE LOW ER AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS ON THE ISSUE . THE CONTROVERSY IN THE PRESENT CASE ARISES TOWARDS COMP UTATION OF LIMITATION PERIOD UNDER S.153C OF THE ACT FOR THE P URPOSES OF ISSUANCE OF NOTICE AND ASSESSMENT THEREON. AS PER SECTION 153A OF THE ACT (IN THE CASE OF SEARCHED PERSON), THE LIMIT ATION OF PRECEDING SIX YEARS STARTS FROM THE FINANCIAL YEAR IN WHICH T HE SEARCH WAS MADE. HOWEVER, IN THE CASE OF SECTION 153C OF THE ACT (PERSON OTHER THAN SEARCHED PERSON), THE LIMITATION OF PREC EDING SIX YEARS STARTS FROM THE DATE OF RECEIPT OF SEIZED ASSETS OR DOCUMENTS FROM THE AO OF THE PERSON SEARCHED AS PER THE ERSTWHILE PROVISO TO SECTION 153C OF THE ACT WHICH STATES AS UNDER: PROVIDED THAT IN CASE OF SUCH OTHER PERSON REFEREN CE TO THE DATE OF INITIATION OF THE SEARCH UNDER SECTION 132 OR MA KING OF REQUISITION UNDER SECTION 132A, IN THE SECOND PROVI SO TO SUB- SECTION (1) OF SECTION 153A SHALL BE CONSTRUED AS R EFERENCE TO THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HA VING JURISDICTIONS OVER SUCH OTHER PERSON. 6. WE NOTICE HERE THAT REASONS FOR ISSUE OF NOTICE UNDER S.153C R.W.S. 153A OF THE ACT WERE RECORDED ON 06.11.2012. THEREFORE, THE LIMITATION FOR PRECEDING SIX YEARS STARTS FROM THE AFORESAID DATE I.E. 06.11.2012. CONSEQUENTLY, THE JURISDICTION TO ISSU E NOTICE UNDER S.153C OF THE ACT IS OUSTED IN SO FAR AS AYS. 2005- 06 & 2006-07 ARE CONCERNED. THE SIMILAR VIEW HAS BEEN EXPRESSED REC ENTLY BY THE HONBLE DELHI HIGH COURT IN THE CASE OF PR.CIT VS. SARWAR AGENCY P. LTD. (2017) 85 TAXMANN.COM 269 (DELHI). WE THUS FIND MERIT IN THE PLEA OF THE ASSESSEE THAT RESPECTIVE NOTICES IS SUED TO THE ASSESSEE UNDER S.153C OF THE ACT FOR ASSESSMENT YEARS IN QUE STION I.E. AYS. 2005-06 & 2006-07 ARE WITHOUT JURISDICTION AS THESE ASSESSMENT IT(SS)A NO. 113/AHD/17 & ITA NO. 3474/AHD/16 (NEESA TECHNOLOGIES PVT. LTD.) A.Y. 2006-07 & 2005- 06 - 4 - YEARS ARE BEYOND THE PURVIEW OF SIX ASSESSMENT YEAR S IN TERMS OF THE PRE-AMENDED PROVISION OF THE SECTION 153C OF THE AC T. AS A COROLLARY, THE ASSESSMENTS PASSED UNDER S.153C OF T HE ACT AS A SEQUEL TO SUCH INVALID NOTICES ARE ALSO LIABLE TO B E QUASHED. IN TERMS OF THESE OBSERVATIONS, THE RESPECTIVE ASSESSM ENT YEARS FOR AY 2005-06 & 2006-07 ARE SET ASIDE AND QUASHED. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT ME MBER AHMEDABAD: DATED 27/11/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- & / REVENUE 2 / ASSESSEE ( ) *+ , / CONCERNED CIT 4 ,- / CIT (A) / 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7 289 : / GUARD FILE. BY ORDER / 4 / 5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 27/11/201 9
