ASSISTANT COMMISSIONER OF INCOME TAX & ANR. vs.RAM MEHAR GARG & ANR.
DELHI TRIBUNAL
Search and Seizure—New Scheme of Assessment in Search Cases—Applicability of section 153C—Search was conducted u/s 132 in case of Nimitya Group of Companies along with alleged sub group known as Ninex Group—Additions had been made to income of assessee for all years on basis of a seized document found from possession of ’X’ of Nimitya Group—Assessee submitted that no
incriminating document or material was found or seized relating to any undisclosed income—Additions were challenged on merits as well as on legal ground that proceedings u/s 153A were not legally tenable as there was no reference to any seized document found from possession of assessee or found belonging to assessee in context of alleged undisclosed income of assessee and that entire addition was based on Annexure -1 seized from possession of ‘X’—It was also submitted that no satisfaction was recorded u/s 153C by AO—CIT (A) deleted additions in all three years on ground that AO could not demonstrate that seized document belonged to assessee—It was submitted that AO had not properly considered relevant facts and provisions of section 153A and 153C—These provisions were search related provisions and provisions of section 153A and 153C were applicable only relating to any undisclosed income on basis of seized documents found in search—It was evident that no such satisfaction had been recorded or it was not even case of Assessing Officer that provision of Sec. 153C were applicable—AO had made reference to various facts in highly arbitrary manner and out of context—Held, Revenue could not produce proof to demonstrate that satisfaction had been recorded by AO of searched party—Thus, AO who was having jurisdiction of searched party, had admittedly not recorded satisfaction note, as mandated by law enabling AO of assessee to assume jurisdiction u/s 153C—Following decision rendered by High Court in P.R.CIT-Central II vs. Aakash Arogya Mandir P.Ltd. assessment orders for AY 2007-08 and 2008-09 were quashed and all appeals filed by Revenue were dismissed—Cross Objections of assessee were allowed and all Revenue appeals were dismissed