P.R.Manickam, CHENNAI V. DCIT, CHENNAI

ITSSA 4/CHNY/2009

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7709 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 01-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 01-03-2012
• Assessment Year: misc
• Appeal Filed On: 29-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KUMARC I T
• Assessee Lawyers: D ANAND
• Keywords: Search and seizure; Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENN AI BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. IT(SS)A NO.04/MDS./2009 BLOCK PERIOD:1.4.85 TO 31.3.95 & 01.04.95 TO 29.09.1995 P.R.MANICKAM, NO.32, AYYANAR STREET, EKKATUTHANGAL, CHENNAI 600 097. VS. DEPUTY COMMISSIONER OF INCOME TAX , CENTRAL CIRCLE II (1), CHENNAI 600 034. PAN AANPM 1783 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI D.ANAND, ADVOCATE DEPARTMENT BY : SHRI ASHOK KUMAR,C.I.T. DR DATE OF HEARING : 01.03.12 DATE OF PRONOUNCEMENT : 01. 03.12 O R D E R PER GEORGE MATHAN JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER PASSED U/S.158BD READ WITH SECTION 254 DATED 31.12.2008 FOR THE BLOCK PERIOD 1.4.85 TO 31. 3.95 & 01.04.95 TO 29.09.1995. SHRI D.ANAND, ADVOCATE, REP RESENTED ON BEHALF OF THE ASSESSEE AND SHRI ASHOK KUMAR, LD. C.I.T. D.R. REPRESENTED ON BEHALF OF THE REVENUE. IT(SS)A. 04 /MDS/09 2 2. IT WAS SUBMITTED BY LD. AUTHORIZED REPRESENTATI VE OF THE ASSESSEE THAT THE ASSESSEE IS AN INDIVIDUAL. IT WA S THE SUBMISSION THAT THE ASSESSEE IS A DIRECTOR IN M/S.S AKTHIMAYIL FINANCE PVT LTD. IT WAS THE SUBMISSION THAT THERE WAS A SEARCH AND SEIZURE OPERATION ON M/S. SAKTHIMAYIL FI NANCE PVT LTD. ON 29.09.95. IT WAS THE SUBMISSION THE BLOCK ASSESSMENT IN THE CASE OF M/S. SAKTHIMAYIL FINANCE PVT LTD. WA S COMPLETED ON 30.12.96. IT WAS THE SUBMISSIONS THAT NOTICE U/S.158BD HAD BEEN ISSUED ON THE ASSESSEE ON 16.08. 96. IT WAS THE SUBMISSION THAT THE BLOCK ASSESSMENT PRO CEEDINGS IN THE CASE OF ASSESSEE FOR ISSUANCE OF NOTICE U/S. 158BD WAS INITIATED WITHOUT RECORDING NECESSARY SATISFACTION. IT WAS THE SUBMISSION THAT IN VIEW OF THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF MANISH MAHESHWARI REPORTED IN 289 ITR 341 (SC) AS NO SATISFACTION HAD BEEN RECORDED BEFOR E ISSUANCE OF NOTICE U/S.158BD, THE NOTICE ISSUED U/S .158BD AND THE CONSEQUENTIAL ASSESSMENT IS LIABLE TO BE ANNULL ED. IN REPLY, THE LD. DR SUBMITTED THAT THIS WAS SET ASIDE PROCEE DINGS AND THE ASSESSEE HAS NOT CHALLENGED THE ISSUE OF SATISF ACTION EARLIER. IT WAS FURTHER SUBMISSION THAT THE ASSESS EE SHOULD NOT BE PERMITTED TO RAISE THE TECHNICAL GROUND IN THE S ET ASIDE IT(SS)A. 04 /MDS/09 3 PROCEEDINGS. IN REPLY, LD. A.R. SUBMITTED THAT THE ISSUE OF SATISFACTION HAD BEEN RAISED AND FURTHER, IT HAS BE EN SPECIFICALLY ALLEGED THAT THE ORDER PASSED BY THE A SSESSING AUTHORITY WAS CONTRARY TO THE LAW AND THE FACTS OF THE CASE. IT WAS FURTHER SUBMISSION THAT THE ISSUE BEING LEGAL I SSUE, WHICH HAS THE SUPPORT OF THE DECISION OF HONBLE SUPREME COURT, THE ISSUE COULD BE RAISED AT ANY TIME. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. LD . D.R. WAS ALSO SPECIFICALLY DIRECTED TO PRODUCE THE COPIE S OF THE ORDER SHEETS NOTING AND REASONS RECORDED, IF ANY, FOR THE PURPOSE OF ISSUANCE OF NOTICE U/S.158BD. LD. D.R. H AS PLACED BEFORE US THE COPIES OF THE ORDER SHEETS NOTING IN THE CASE OF SAKTHIMAYIL FINANCE PVT LTD. PERUSAL OF THE ORDER SHEET NOTING SHOWS THAT THE ASSESSING OFFICER HAS NOT RECORDED A NY SPECIFIC SATISFACTION MUCH LESS ANY SATISFACTION AT ALL FOR THE PURPOSE OF ISSUING NOTICE U/S.158BD. FURTHER, THE ISSUE AS RI GHTLY POINTED OUT BY THE LD. A.R. IS A LEGAL ISSUE AND BEING A LE GAL ISSUE, THE SAME CAN BE RAISED AT ANY STAGE AS HAS BEEN HELD BY THE HONBLE SUPREME COURT. FURTHER, IT IS NOTICED THAT THE ISSUE OF NON-RECORDING OF SATISFACTION AND THE CONSEQUENTIAL EFFECT ON THE NOTICE ISSUED U/S.158BD IS COVERED BY THE DECIS ION OF IT(SS)A. 04 /MDS/09 4 HONBLE SUPREME COURT IN THE CASE OF MANISH MAHESHW ARI. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE DECIS ION OF THE HONBLE SUPREME COURT IN THE CASE OF MANISH MAHESHW ARI REFERRED TO SUPRA AS IT IS NOTICED THAT NO SATISFAC TION HAS BEEN RECORDED FOR THE PURPOSE OF INITIATING PROCEEDINGS U/S.158BD IN THE CASE OF THE ASSESSEE BEFORE US, NOTICE ISSUED U /S.158BD IS HELD TO BE BAD IN LAW AND CONSEQUENTIAL ASSESSMENT QUASHED. AS THE APPEAL OF THE ASSESSEE HAS BEEN ALLOWED ON T ECHNICAL GROUND, THE OTHER GROUNDS RAISED BY THE ASSESSEE ON MERITS ARE NOT BEING ADJUDICATED UPON. IN THE CIRCUMSTANCE S, THE APPEAL OF THE ASSESSEE IS ALLOWED. 4. IN RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH, 2012. SD/- SD/- ( N.S.SAINI ) (GEORGE MATHAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 1 ST MARCH, 2012. K S SUNDARAM COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE IT(SS)A. 04 /MDS/09 5