The DCIT, circle-4(1)(1), Ahmedabad V. Shivalik Realty Eastet Pvt. Ltd, Ahmedabad

ITSSA 553/AHD/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4990 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-03-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 04-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Loose papers; Documents seized
• Section: 132; 143(3); 142(1); 153A; 195; 13; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD [CONDUCTED THROUGH VIRTUAL AT AHMEDABAD] BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER& Ms. MADHUMITA ROY, JUDICIAL MEMBER I .T .( SS ) A . N o . 5 5 2/ A h d/ 2 0 19 ( A s s e s s me nt Y ea r : 20 1 0- 11 ) D C I T C ir cl e - 4( 1) ( 1) , A h m e d a ba d - 3 8 0 01 5 V s.Sh iva li k R e a l t y Es t ate P vt . Lt d . N r . A j a y S o ci e t y, S ate ll ite Po lic e St at io n, J o d h p ur C h ar R a sta , A h me da ba d [ P A N N o . A A L C S 4 7 3 7N ] (Appellant) .. (Respondent) C . O . N o. 3 4 /A hd /2 02 0 ( in I T( SS ) A N o . 5 5 2 / Ah d/2 0 1 9) ( A s s e s s me nt Y ea r : 20 1 0- 11 ) Sh iva li k R e a l t y Es t ate P vt . Lt d . N r . Aj a y S o ci e t y, N r . Sa te lli te Po lit e St a t io n, Jo dh p ur C ha r R a sta , Ah me da ba d Vs . D C I T C ir c l e- 4( 1) ( 1) , A h m e d a b ad - 3 80 0 1 5 [ P A N N o . A A L C S 4 7 3 7N ] (Appellant) .. (Respondent) I .T .( SS ) A . N o . 5 5 3/ A h d/ 2 0 19 ( A s s e s s me nt Y ea r : 20 1 1- 12 ) D C I T C ir cl e - 4( 1) ( 1) , A h m e d a ba d - 3 8 0 01 5 V s.Sh iva li k R e a l t y Es t ate P vt . Lt d . N r . A j a y S o ci e t y, N r . Sa te lli te Po lit e St a t io n , Jo dh p ur C ha r R a sta , A h me da ba d [ P A N N o . A A L C S 4 7 3 7N ] (Appellant) .. (Respondent) C . O . N o. 3 5 /A hd /2 02 0 ( in I T( SS ) A N o . 5 5 3 / Ah d/2 0 1 9) ( A s s e s s me nt Y ea r : 20 1 1- 12 ) Sh iva li k R e a l t y Es t ate P vt . Lt d . N r . A ja y S o ci e t y, N r . Sa te lli te Po lit e St a t io n, Jo dh p ur C ha r R a sta , Ah me da ba d Vs . D C I T C ir c l e- 4( 1) ( 1) , A h m e d a b ad - 3 80 0 1 5 [P A N N o . A A L C S 4 7 3 7N] (Appellant) .. (Respondent) IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 2 - I .T .( SS ) A . N o . 5 5 5/ A h d/ 2 0 19 ( A s s e s s me nt Y ea r : 20 1 3- 14 ) D C I T C ir cl e - 4( 1) ( 1) , A h m e d a ba d - 3 8 0 01 5 V s.Sh iva li k R e a l t y Es t ate P vt . Lt d . N r . A j a y S o ci e t y, N r . Sa te lli te Po lit e St a t io n , Jo dh p ur C ha r R a sta , A h me da ba d [ P A N N o . A A L C S 4 7 3 7N ] (Appellant) .. (Respondent) C . O . N o. 3 6 /A hd /2 02 0 ( in I T( SS ) A N o . 5 5 5 / Ah d/2 0 1 9) ( A s s e s s me nt Y ea r : 20 1 3- 14 ) Sh iva li k R e a l t y Es t ate P vt . Lt d . N r . A ja y S o ci e t y, N r . Sa te lli te Po lit e St a t io n, Jo dh p ur C ha r R a sta , Ah me da ba d Vs . D C I T C ir c l e- 4( 1) ( 1) , A h m e d a b ad - 3 80 0 1 5 [P A N N o . A A L C S 4 7 3 7N] (Appellant) .. (Respondent) Revenue by : Shri Vijaykumar Jaiswal, CIT DR Assessee by : Smt. Nupur Shah, A.R. D a t e of H ea r i ng 24.02.2022 D a t e of P r o no u n ce me nt 14.03.2022 O R D E R PER BENCH: In these bunch of appeals and the Cross Objections filed by the Revenue and the assessee respectively are directed against the orders all dated 17.09.2019 passed by the Ld. CIT(A)-8, Ahmedabad arising out of the orders all dated 27.12.2018 passed by the DCIT, Circle-4(1)(1), Ahmedabad under Section 153C r.w.s. 153A r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Ys. 2010-11, 2011-12 & 2013-14 respectively. IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 3 - IT(SS)A No. 552/Ahd/2019 (A.Y. 2010-11):- 2. The grounds of appeal raised by the Revenue read as under:- “1. Whether the Ld. CIT(A) was cored in deleting the addition on account of unaccounted cash receipt of Rs. 2,29,75,000/- by quashing the notice u/s. 153C of the Income Tax Act, 1961.” 3. The brief facts leading to the case is this that a search was conducted under Section 132 of the Act on 04.12.2014 in the case of Barter Group consisting of Shri Atul Hiralal Shah, Shri Anil Hiralal Shah and their family members and various entities controlled and managed by them. In the course of search proceedings at premises lying and situated at B-406, Wall Street, II, Ellisbridge, Ahmedabad certain documents marked as Annexure- A-24 containing 1 to 3 pages were found and seized which has been alleged to be pertained to the assessee before us. Seized materials contained details of funds paid for purchase a property at Shivalik Western Complex, Adajan Road, Surat. Certain loose papers of Annexure- A-10 seized from the residence of Shri Ashit Harilal Vora on the same date of search on 04.12.2014 contained details of alleged payments made from basement of the said complex. The entire set of documents has been alleged as pertains to the assessee before us. Consequently, assessment proceeding under Section 153C of the Act was initiated upon issuance of satisfaction note dated 23.03.2018 by the Ld. DCIT, Central Circle-1(2), Ahmedabad followed by notice dated 20.08.2018 under Section 153C of the Act whereupon the assessee filed its return of income on 08.09.2018 declaring income at Rs. 1,57,95,420/-/-. IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 4 - 4. During the examination and verification of the details filed by the assessee in regard to the documents seized from the said Barter Group and Ashit Haribhai Vora it was noticed that assessee had not reflected certain business transaction being cash receipts and payment in its regular books of accounts. Further that show-cause under Section 142(1) was issued requesting the assessee as to why the on-money receipt of Rs. 2,29,75,000/- for the year under consideration should not be added in the hands of the assessee by treating the same as unaccounted income and ultimately the assessment was finalized by making addition of Rs. 2,29,75,000/-/- as unaccounted on money received in cash which was deleted by the Ld. CIT(A). Hence, the instant appeal before us. 5. At time of hearing of the instant appeal the Ld. Representative of the Revenue submitted before us that the document and the information contained therein relates to the assessee and, therefore, the notice under Section 153C was issued reopening the assessment and finally concluded upon making addition of Rs. 2,29,75,000/-. He, therefore, relied upon the order passed by the Ld. AO. 6. However, the Ld. Counsel appearing for the assessee vehemently argued on the point of maintainability of the proceeding by the issuance of notice under Section 153C as bad in law in view of the fact that before amendment of the provision of Section 153C w.e.f. 01.06.2015 the A.O. cannot assume jurisdiction over the assessee under Section 153C on the basis of the seized materials belong to third party Batter Group. Such case made out by the assessee is on the basis of the fact that search was IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 5 - conducted on 04.12.2014 when the prevailing statutory provision under Section 153C specified that the Ld. AO must have been satisfied that the documents seized from the third party search should belong the assessee. In this regard, she has relied upon the satisfaction note dated 23.03.2018 appearing at Pages 314 to 319 of the Paper Book filed before us wherefrom it appears that the documents in question has been found as “pertains to the assessee”. 7. It was further argued by the Ld. Counsel appearing for the assessee that the case was made out by the appellant as hereinabove was duly accepted by the Ld. CIT(A) and the appeal was allowed rightly quashing the assessment initiated under Section 153C of the Act. In support of her contention she has relied upon certain judgments including the judgment passed by the Hon’ble Jurisdictional High Court in the case of Anil Kumar Gopikishan Agrawal vs. ACIT, Circle-3(2), Ahmedabad, reported in (2016) 106 taxmann.com 137 (Gujarat) a copy whereof has also been annexed to the Paper Book filed before us. 8. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. 9. The relevant portion of the satisfaction note dated 23.03.2018 recorded by the DCIT, Central Circle-1(2), Ahmedabad is as follows: “Office of the DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1 (2), AHMEDABAD Room No.305, 3 rd floor, Aayakar Bhavan, Ashram Road, Ahmedabad. Phone: [phone] IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 6 - SATISFACTION NOTE OF THE AO OF THE SEARCHED PARTY/PERSON COVERED U/S153A OF THE ACT FOR INITIATION OF ASSESSMENT PROCEEDINGS U/S 153C OF THE ACT 1. Name of the Group searched Accommodation Entry Provider Group of Ahmedabad 2. Name and P.A.No. of the person referred to in section 153A Neminath Trades Private Limited (PAN: AACCN5138M), Shri Anil Hiralal Shah (PAN: ALHPS1805K), Shri Atulbhai Hiralal Shah (PAN: AUPS4966M), Rajshah Enterprise Private Limited (PAN: AACCR9569C), Shri Ashit Haribhai Vora (PAN: ACJPV1280C), Anashthan Builrjeon Private Limited (PAN: AAJCA3647B), Real Marketing Pvt Ltd (PAN: AACCR4046C), Stothers 3. Date of initiation of search in the case of the person referred to in section 153A 04.12.2014 and subsequent dates. 4. Name, address and P.A.No. of the person in whose case action under section 153C is proposed M/s Shivalik Realty Estate Private Limited, (PAN: AALCS4737N 5. Specific details of the seized material on the basis of which action under section 153C is proposed: (a) Nature of the seized material (money/ bullion/ jewellery/other valuable articles or thing/books of account/ documents Books of account/loose papers/e-data (b) Description of the seized material Loose papers, sale deed etc. (c) Premise-1 Office of Barter group at B-406, Wall Street-11, Ellisbridge, Ahmedabad. Premise-2 Residence of Shri Ashit Shah (Vora) at 5-B, Vasupujya Society, Paldi, Ahmedabad. Premise-3 Office of Barter group at A-301, wall Street-11, Ahmedabad (d) Date of seizure of such material On the dates of search i.e. 04.12.2014 and subsequent dates. (e) Particulars of the relevant Panchnama Panchnama dated 04.12.2014, 05.12.2014, 06.12.2014 & subsequent dates. (f) Annexure/S.No./Page number etc. (particulars to be specified) Premise-1 A- 24 Page 1 to 3 contains details of details of funds paid for purchase of property at Shiwalik Western, Adajan Road, Surat have been recorded. IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 7 - Premise-2 A/10 Page 15 to 18 contains details of details of funds paid for purchase of property at Shiwalik Western, Adajan Road, Surat have been recorded. Premise-3 A/47 Pages 87 to 195 contain details of the sale deeds of these properties. 6. Relationship of the person referred in S.No.4 with the person "referred to in S.No.2 Shivalik Realty Estate Private Limited had sold property to Rajshah Enterprises Private Limited/Barter group. Satisfaction of the Assessing Officer of the person referred to in section 153A that the seized material referred to in : S.No.5 relates/pertains to the person referred to in S.No.4 As per Annexure-A 8. Assessment Years involved Y.2009-10 TO 2015-16 [Dr. K. K. rupavatiya) Deputy Commissioner of Income Tax Central Circle-l(2), Ahmedabad Date: 23/03/2018 Annexure: As stated Annexure-A 1. A search action was carried out in case of Accommodation Entry Provider Group of Ahmedabad on 04.12,2014 and on subsequent dates. This group is also known as Barter group consist of Atul Hiralal Shah, Anil Hiralal Shah, their family members and entities controlled and managed by them) based on one key member Anil Hiralal Shah alias Raju B Shah alias Raju barter. This search was developed primarily on the basis of evidences collected during the course of search of Shirish Chandrakant Shah (SCS) conducted by this Unit in Mumbai on 09/04/2013. In the search action, two Ahmedabad based subgroups i.e. (a) Barter Group (b) Pradip Birewar Group were covered. In the search, highly incriminating evidences have been seized and the DDIT has reported detection of undisclosed income of Rs.2582.Sl Crore. During the course of search it was noticed that Barter Group was found to have huge unexplained investment from unaccounted money in immovable properties in India. The details of the said projects are as under: 2. Unaccounted investment in Shiwalik Western, Surat During the course of search at the secret Office of Barter group situated at B-406, Walt Street-II, at pages 1 to 3 of Annexure A-24, details of funds paid for purchase of property at IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 8 - Shiwalik Western, Adajan Road, Surat have been recorded. Similar details have been recorded on pages 15 to 18 of Annexure A-10, seized from the residence of Shri Ashit Harilai Vora during the course of search proceedings on 04.12.2014. The copies of pages 1 to 3 of Annexure A-24 are scanned hereunder: 3. As evident from the pages scanned above, Office No. 5, 6 ; 105, 106 and basement at Shiwalik Western Complex has been purchased by Barter Group. As per the entries recorded for these properties cash and cheques as under have been recorded to be paid as per the dates recorded there against, the payment of cash and cheques made thereof is tabulated hereunder: Sr. No. Description of property Cheque paid Cash Paid 1. Office No. 5 &6 6397720 41104380 2. Office No. IDS & 106 5135626 44072460 3. Basement 225000 5275000 Total 11758346 90451840 4. Thus, cheques aggregating to Rs. 1,17,58,346/- and cash aggregating to Rs. 9,04,51,840/- has been paid. The said page was confronted to Shri Atul Hiralal Shah during the course of his statement recorded under section 132(4} of the Act on 03.02.2015. He has stated that the said properties have been purchased in the name of M/s. Rajshah Enterprises Private Limited. He has further stated that the cheques have been accounted for in the books of M/s. Rajshah Enterprises Private Limited and the cash payments are unaccounted. Relevant Part of his statement is reproduced hereunder: "Q.2 I am showing you page No.1 of Annexure-A-24 seized from the premises situated at B-406, Wall Street-II, Ellisbridge, Ahmedabad during the course of search proceedings on 06.12.2014. On perusal of page 1 of the aforesaid Annexure, it is seen that office No. 5 and 6 situated at Shivalik (Surat) has been purchased for a total consideration of Rs. 5,42,45,952/- admeasuring 4474 and 4715 sq. feet, respectively. For the said transaction, cash payment of Rs. 4,11,04,380/- has been made on various dates starting from 08.03.2010 to 06.05.2010 as IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 9 - noted on this page. You are requested to explain the source of payment of such cash for the purchase of two offices. You are also requested to explain in whose name the said offices were purchased and when were they purchased. Please state in whose books the same are reflected. Ans. Sir, in this regard, I have to state that we have purchased the aforesaid properties at Shivalik Western, Adajan Road, Surat in the F.Y. 2009-10 and the payment has been made in F.Y. 2009-10 and 2010-11, as recorded in page 1 of the Annexure-24 seized by the department. The payment has been made in cash and the same is not accounted for in the books of account. The said properties have been purchased in the name of Rajshah Enterprises Pvt. Ltd. Q 3 I am showing you page No.2 of Annexure -A-24 seized from the premises situated at B-406, Wall Street-11, Ellisbridge, Ahmedabad during the course of search proceedings on 06.12,2014. On perusal of page 2 of the aforesaid Annexure, it is seen that office No.105 and 106 situated at Shivalik (Surat} has been purchased for a total consideration 'of Rs. 4,40,72,460/- admeasuring 4143 and 4300 sq. feet, respectively. For the said transaction, cash payment of Rs. 3,36,06,592/- has been made on various dates starting from 07.04.2010 to 06.05.2010 as noted on this page. You are requested to explain the source of payment of such cash for the purchase of two offices. You are also requested to explain in whose name the said offices were purchased and when were they purchased. Please state in whose books the same are reflected. Ans. Sir, in this regard, I have to state that we have purchased the aforesaid properties at Shivalik Western, Adajan Road, Surat in the F.Y. 2009-10 and the payment has been made in F.Y. 2010-11, as recorded in page 2 of the Annexure-24 seized by the department. The payment of Rs. 3,36,06,592/- made in cash and the same is not accounted for in the books of account. The said properties have been purchased in the name of Rajshah Enterprises Pvt. Ltd. Q.4 I am showing you page No.3 of Annexure-A-24 seized from the premises situated at B-406, Wall Street-11, Ellisbridge, Ahmedabad during the course of search proceedings on 06.12.2014. On perusal of page 3 of the aforesaid Annexure, it is seen that Basement of Shivalik (Surat) has been purchased for a total consideration of Rs. 55,00,000/-. For the said transaction, cash payment of Rs. 52,75,000/- has been made on various dates starting from 25.01.2010 to 18.03.2010 as noted on this page. You are requested to explain the source of payment of such cash for the purchase of Basement office. You are also requested to explain in whose name the said office was purchased and when it was purchased. Please state in whose books the same is reflected. Ans. Sir, in this regard, I have to state that we have purchased the aforesaid properties at Shivalik Western, Adajan Road, Surat in the F.Y. 2009-10 and the payment has been made in F.Y. 2009-10, as recorded in page 3 of the Annexure-24 seized by the department. The payment of Rs. 52,75,000/- recorded to have been made in cash has not been accounted for in the books of account. The said properties have been purchased in the name of Rajshah Enterprises Pvt. Ltd." IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 10 - 5. In view of the discussion held above the receipt of Rs. 9,04,51,840/- from M/s. Rajshah Enterprises Private Limited/Barter group for the relevant assessment years in which payments have been made remained unaccounted in the hands of your assessee. As per the sale deeds of these properties seized on pages 87 to 195 of Annexure A/47 seized from the Office situated at A-301, wall Street-11, Ahmedabad it has been found that the seller is M/s. Shivalik Realty Estate Private Limited (PAN AALCS4737N). 6. In view of above facts, I am satisfied that the above documents seized from searched premises as mentioned above (covered u/s 153A) pertain/pertains to, or any information contained therein, relates to Shivalik Realty Estate Private Limited. Since the assessee being other than the person referred to in Section 153A of the Act, I have satisfaction to proceed against the assessee Shivalik Realty Estate Private Limited as per the provisions of Section 153C of the income Tax Act, 1961 as it have I bearing on the determination of the total income for the assessment years 2009-10 to 2015-16. Therefore, it is fit case for initiation of proceeding u/s 153C of the Act. (Dr. K. K. rupavatiya) Deputy Commissioner of Income Tax Central Circle-1(2), Ahmedabad Date: 23/03/2018” 10. From the plain reading of the above satisfaction note we find that the documents seized has been terms as “pertains and relates to the assessee company” and not belongs to the assessee company. 11. It is an admitted fact that the search was conducted prior to the amendment of Section 153C of the Act w.e.f. 01.06.2015. Whereas the proceeding under Section 153C of the Act have been initiated after that date and it is in the backdrop of the validity of the impugned notices has been called in question. The case of the appellant is this that the proceedings under Section 153C of the Act are triggered by the search and hence, the provision of law as existing on the date of search was required to be followed. IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 11 - 12. On the contrary, in the case of the Revenue is this that the provision of law as existing on the date of recording satisfaction by the AO of the person searched and the date of issuance of notice under Section 153C of the Act is to be followed. On this aspect we have also considered the judgment passed by the Jurisdictional High Court in the case of Anil Kumar Gopikishan Agarwal vs. ACIT, Circle-3(2), Ahmedabad, reported in Special Civil Application No. 12825 of 2018 where it has been held that it is not permissible for the Assessing Officer to assume jurisdiction under Section 153(c) of the Act when the seized incriminating documents found to be related to the assessee and not belongs to the assessee. It was observed as follows: “...While it is true that sections 153A and 153C are machinery provisions, but the same cannot be made applicable retrospectively, when the amendment has expressly been given prospective effect. Besides, though such provisions are machinery provisions, the amend bring into its fold persons who are otherwise not covered by the said provisions and therefore, affects the substantive rights of such person.”... “19.3 Thus, while prior to the amendment in section 153C of the Act, if the Assessing Officer of the searched person was satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belong to or belongs to a person other than the searched person he was required to hand over the books of account or documents or assets seized or requisitioned to the Assessing Officer having jurisdiction over such other person, and that Assessing Officer required to proceed against such other person in accordance with the provisions of section 153A of the Act and asses or reassess his income. However, by virtue of the amendment in section 153C of the Act which was brought into force with effect from 1 st June, 2015, the scope of the section was widened by providing that if the Assessing Officer of the searched person is satisfied that (a) any money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to; (b) or books of account for documents or documents pertain to, or any information contained therein, relate to any person other than the searched person he shall hand over the books of account or documents or assets seized to the Assessing Officer having jurisdiction over such other person. The amendment further provided that that Assessing Officer shall 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 IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 12 - person for the relevant assessment year or years referred to in sub-section (1) of section 153A.” 13. The Hon’ble Court finally held as follows: “23. In the light of the above discussion, the petitions succeed, and are accordingly, allowed. The impugned notices issued under section 153C of the Income Tax Act, 1961 in each of the petitions are hereby quashed and set aside. In cases where the assessment orders are subject matter of challenge, the impugned assessment orders are hereby quashed and set aside on the ground that the very initiation of proceedings under section 153C of the Income Tax Act, 1961 was without jurisdiction. Rule is made absolute accordingly in each of the petitions, with no order as to cost.” 14. Thus, considering the entire gamut of the matter we find force in the submission made by the Ld. Counsel appearing for the assessee. It is further noticed that the Ld. DR has not advanced any fruitful argument on this technical aspect of the matter as to whether under the present facts and circumstances of the case considering the date of search on 04.12.2014 prior to the amendment of the Section 153C on 01.06.2015 on the third party namely Barter Group where the document seized belonged to the such group and nowhere as described the same as belonged to the assessee, the initiation of the proceeding under Section 153C is justifiable or not. However, our query has already been answered by the assessee and we find that the case made out by the assessee is further supported by the ratio laid down by the Jurisdictional High Court in the case of Anil Kumar Gopikishan Agarwal (supra). We have further considered the judgment passed by the Ld. CIT(A) wherein we find that relying on the judgment passed by the Jurisdictional High Court in the case of Anil Kumar Gopikishan Agarwal (supra) the issuance of notice under Section 153C of the Act on the basis of the seized material belonging to Barter Group found during search on 04.12.2014 has been found to be invalid by the Ld. CIT(A). The entire proceeding was, therefore, quashed which in our IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 13 - considered opinion is just and proper so as to warrant interference. Thus, Revenue’s appeal is found to be devoid of any merit and hence dismissed. IT( SS) A No s. 553 & 5 55/ Ahd/2019(A. Y. 2011-12 & 20 13-14): - 15. The identical issue involved in the case has already been dealt with by us in IT(SS)A No. 552/Ahd/2019 for A.Y. 2010-11 and in the absence of any changed circumstances the same shall apply mutatis mutandis. Hence, the appeals preferred by the Revenue are dismissed. C.O. Nos. 34to36/Ahd/2020(A.Y. 2010-11, 2011-12 & 2013-14):- 16. Since the initiation of the proceedings under Section 153C has been quashed by us in IT(SS)A No. 552/Ahd/2019 for A.Y. 2010-11 the Cross Objections arising out of the orders of addition made by the Revenue have become infructuous and are dismissed as infructuous. 17. In the combined results, the appeals preferred by the Revenue are dismissed and Cross Objections preferred by the assessee are also dismissed. This Order pronounced in Open Court on 14/03/2022 Sd/- Sd/- (WASEEM AHMED) (Ms. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 14/03/2022 TANMAY, Sr. PS TRUE COPY IT(SS)A No.552/Ahd/2019 & CO No. 34/Ahd/2020 IT(SS)A No. 553/Ahd/2019 & C.O. No.35/Ahd/2020 IT(SS)A No. 555/Ahd/2019 & C.O. No. 36/Ahd/2020 Asst.Year –2010-11, 2011-12 & 2013-14 - 14 - आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 11.03.2022 2. Date on which the typed draft is placed before the Dictating Member 14.03.2022 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S 14 .03.2022 5. Date on which the fair order is placed before the Dictating Member for pronouncement 14 .03.2022 6. Date on which the fair order comes back to the Sr.P.S./P.S 15 .03.2022 7. Date on which the file goes to the Bench Clerk 15 .03.2022 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................