Ms. Gurvinder Kaur, Ludhiana v. DCIT, Ludhiana

ITA 100/CHANDI/2012 | 2007-2008
Pronouncement Date: 31-07-2012 | Result: Allowed

Appeal Details

RSA Number 10021514 RSA 2012
Assessee PAN AKHPK3991K
Bench Chandigarh
Appeal Number ITA 100/CHANDI/2012
Duration Of Justice 6 month(s) 5 day(s)
Appellant Ms. Gurvinder Kaur, Ludhiana
Respondent DCIT, Ludhiana
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 31-07-2012
Date Of Final Hearing 09-07-2012
Next Hearing Date 09-07-2012
Assessment Year 2007-2008
Appeal Filed On 25-01-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI H.L. KARWA VP AND SHRI T.R. SOOD AM ITA NO. 98/CHD/2012 ASSESSMENT YEAR: 2007-08 MRS. RUPINDER KAUR V. D.C.I.T. 417 KUCHA PARTAP CENTRAL CIRCLE 1 NAI ABADI KHANNA LUDHIANA DISTT. LUDHIANA PAN: AKHPK 3991 K ITA NO. 99/CHD/2012 ASSESSMENT YEAR: 2007-08 MS. SATINDER KAUR V. D.C.I.T. 368/4 CENTRAL CIRCLE 1 NAI ABADI KHANNA LUDHIANA DISTT. LUDHIANA PAN: AIWPK 1065 F ITA NO. 100/CHD/2012 ASSESSMENT YEAR: 2007-08 MS. GURVINDER KAUR V. D.C.I.T. 417 KUCHA PARTAP CENTRAL CIRCLE 1 NAI ABADI KHANNA LUDHIANA DISTT. LUDHIANA PAN: AMEPK 0527 G (APPELLANT) (RESPONDENT) APPELLANTS BY: SHRI KAPIL GOEL RESPONDENT BY: MS. JYOTI KUMARI DATE OF HEARING: 09.07.201 2 DATE OF PRONOUNCEMENT: 31 .07.2012 ORDER PER T.R. SOOD A.M IN ALL THESE THREE APPEALS COMMON ISSUES ARE THERE AND COMMON GROUNDS HAVE BEEN RAISED THEREFORE THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY THIS COMMON ORDER. 2. BEFORE US ARGUMENTS WERE ADVANCED IN RESPECT OF GROUND NO. 1 WHICH IS COMMON IN ALL THE THREE APPEALS AND READ AS UNDER:- THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT(A) ERRED IN UPHOLDING THE IMPUGNED ASSESSMENT O RDER PASSED BY THE 2 ASSESSING OFFICER IN VIOLATION OF MANDATORY JURISDI CTIONAL CONDITIONS SPELT U/S 153C OF THE ACT. 3. THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT N O SEARCH WAS CONDUCTED IN CASE OF ANY OF THE APPELLANTS BEFORE US AND THE ASSESSMENTS U/S 153C HAVE BEEN COMPLETED WITHOUT RECORDING ANY SATISFACTION. NO ASSESSMENT PROCEEDINGS U/S 153C COULD HAVE BEEN TAKEN UP IN THE ABSENCE OF SATISFACTION. IN THIS REGARD HE RELIED ON THE FOLLOWING DECISIONS:- ACIT V. SRM HOTELS P LTD CHENNAI ITAS NO. 1541 1 542 1543 AND 1544 /MDS/2011 ACIT V. LEELA ENTERPRISES MUMBAI ITAS NO. 5102 T O 5108/MUM/2010 BEEJAY SECURITY & FINANCE LTD. V ACIT ITAS NO. 485 9 TO 4865/MUM/2009 ACIT V. AMIT PANDE ITAS NO. 88 AND 90 TO 94/INDORE /2008 AND C.OS NO. 34 TO 40/INDORE/2009 CIT V. LATE J. CHANDRASHEKHAR (HUF) T.C.(A) NO. 159 TO 161 OF 2011 AND M.P NOS. 1 AND 1 OF 2011 CIT V. GANGA DHAR AGARWAL CC 16767/2008 CIT V. MEGHMANI ORGANICS LTD TAX APPEAL NO. 2077 O F 2009 2078 OF 2099 TO 2086 OF 2009 CIT-I V. JYOTINDRA V. VASA TAX APPEAL NO. 99 OF 20 11 (COPIES FILED) 4. ON THE OTHER HAND THE LD. DR FOR THE REVENUE S UBMITTED THAT THE ASSESSING OFFICER HAS SENT THEM THE RECORD STATING THAT SATISFACTION HAS BEEN RECORDED IN A SEPARATE FOLDER WHICH MEANS SATISFACT ION MUST HAVE BEEN RECORDED AND THEY WOULD NEED FURTHER TIME TO PRODUC E THE COPY OF THE SATISFACTION NOTE. 5 IT IS NOTICED BY THE BENCH THAT THE CASE WAS ADJO URNED ON EARLIER OCCASIONS AT THE REQUEST OF THE LD. DR FOR THE REVE NUE. HOWEVER IN THE INTEREST OF JUSTICE THE CASE WAS TREATED AS HEARD AND FURTHE R TIME OF SEVEN DAYS WAS GIVEN TO THE DEPARTMENT TILL 17.7.2012 TO FURNISH T HE COPY OF SATISFACTION NOTE. BUT TILL 18.7.2012 NO SUCH NOTE HAS BEEN FURNISHED BY THE DEPARTMENT THEREFORE ONLY ASSUMPTION POSSIBLE FOR US IS THAT THE REVENUE HAS NOT RECORDED 3 SATISFACTION NOTE AS ENVISAGED U/S 153C OF THE ACT. THE PROVISIONS OF SECTION 153C READ AS UNDER:- 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 ANY MONEY BULL ION JEWELLERY OR OTHER VALUABLE ARTICLE OR THING OR BOOKS OF ACCOUNT OR DO CUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERSON OTHER T HAN 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 SU CH OTHER PERSON NOTICE AND ASSESS OR REASSESS INCOME OF SUCH OTHER PERSON IN ACCORDANCE WITH THE PROVISIONS OF SECTION 153A :] 92 [(2) WHERE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED AS REFERRED TO IN SUB-SECTION (1) HAS OR HAVE BEEN RECEIVED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON AFTER THE DUE DATE FOR FURNISHING THE RETURN OF INCOME FOR TH E ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SEARCH IS CO NDUCTED UNDER SECTION 132 OR REQUISITION IS MADE UNDER SECTION 132A AND IN RESPECT OF SUCH ASSESSMENT YEAR ( A ) NO RETURN OF INCOME HAS BEEN FURNISHED BY SUCH OT HER PERSON AND NO NOTICE UNDER SUB-SECTION (1) OF SECTION 142 HAS BEEN ISSUED TO HIM OR ( B ) A RETURN OF INCOME HAS BEEN FURNISHED BY SUCH OTH ER PERSON BUT NO NOTICE UNDER SUB-SECTION (2) OF SECTION 143 HAS BEEN SERVED AND LIMITATION OF SERVING THE NOTICE UNDER SUB-SECTION (2) OF SECTION 143 HAS EXPIRED OR ( C ) ASSESSMENT OR REASSESSMENT IF ANY HAS BEEN MADE BEFORE THE DATE OF RECEIVING THE BOOKS OF ACCOUNT O R DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HA VING JURISDICTION OVER SUCH OTHER PERSON SUCH ASSESSING OFFICER SHALL ISS UE THE NOTICE AND ASSESS OR REASSESS TOTAL INCOME OF SUCH OTHER PERSO N OF SUCH ASSESSMENT YEAR IN THE MANNER PROVIDED IN SECTION 153A .] A PLAIN READING OF SECTION 153C CLEARLY SHOWS THAT TH E PROCEEDINGS UNDER THIS SECTION CAN BE INITIATED ONLY IF THE ASSESSING OFFICER IS S ATISFIED THAT MONEY BULLION JEWELLERY OR OTHER VALUABLE ARTICLE OR THINGS OR BOOKS OF ACC OUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERSON OTHER T HAN THE PERSON REFERRED TO IN SECTION 153A. THE ASSESSMENTS HAVE BEEN COMPLETED U/S 153C WHICH MEANS THE ASSESSEE BEFORE US WERE NOT THE PERSON AGAINST WHOM SEARCH WAS MADE. IN FACT SIMILAR PROVISION IN CASE OF BLOCK ASSESSMENT WAS T HERE U/S 158BD WHERE IN CASE THE PERSON WAS SEARCHED AND SOME MONEY BULLION JEWEL LERY OR OTHER DOCUMENTS WERE FOUND IN RESPECT OF OTHER PERSONS AND IF SATISFACT ION WAS RECORDED BY THE ASSESSING 4 OFFICER THEN BLOCK ASSESSMENT CAN BE INITIATED U/S 158BD IN RESPECT OF SUCH OTHER PERSONS. WHEN THE ISSUE OF RECORDING SATISFACTION WAS CONTESTED BEFORE THE HON'BLE SUPREME COURT IN CASE OF MANISH MAHESHWARI V. ACIT AND ANOTHER 289 ITR 341 IT WAS HELD AS UNDER:- HELD ACCORDINGLY THAT WHERE THE PREMISES OF A DI RECTOR OF A COMPANY AND HIS WIFE WERE SEARCHED U/S 132 OF THE INCOME-TA X ACT 1961 AND A BLOCK ASSESSMENT HAD TO BE DONE IN RELATION TO THE COMPANY THE ASSESSING OFFICER HAD TO (I) RECORD HIS SATISFACTIO N THAT ANY UNDISCLOSED INCOME BELONGED TO THE COMPANY AND (II) HAND OVER T HE BOOKS OF ACCOUNT AND OTHER DOCUMENTS AND ASSETS SEIZED TO THE ASSESS ING OFFICER HAVING JURISDICTION AGAINST THE COMPANY. SIMILAR REQUIREMENT IS THERE INCASE OF SECTION 153C . AS PER THE DECISION OF THE TRIBUNAL IN FOLLOWING CASES: ACIT V. SRM HOTELS P LTD CHENNAI ITAS NO. 1541 1 542 1543 AND 1544 /MDS/2011 ACIT V. LEELA ENTERPRISES MUMBAI ITAS NO. 5102 T O 5108/MUM/2010 BEEJAY SECURITY & FINANCE LTD. V ACIT ITAS NO. 485 9 TO 4865/MUM/2009 ACIT V. AMIT PANDE ITAS NO. 88 AND 90 TO 94/INDORE /2008 AND C.OS NO. 34 TO 40/INDORE/2009 CIT V. LATE J. CHANDRASHEKHAR (HUF) T.C.(A) NO. 159 TO 161 OF 2011 AND M.P NOS. 1 AND 1 OF 2011 CIT V. GANGA DHAR AGARWAL CC 16767/2008 IN ALL THE ABOVE CASES IT HAS BEEN HELD THAT REQUI REMENT OF RECORDING SATISFACTION IS SIMILAR TO THAT OF SECTION 158 BD AND IN THE ABS ENCE OF SUCH SATISFACTION PROCEEDINGS U/S 153C ARE NOT ALLOWED. THEREFORE FOLLOWING THE ABOVE DECISIONS WE HOLD THAT SINCE NO SATISFACTION HAS BEEN RECORDE D BY THE ASSESSING OFFICER THEREFORE THESE ASSESSMENTS HAVE TO BE ANNULLED A ND ACCORDINGLY WE QUASH THESE ASSESSMENT. 6. IN THE RESULT ALL THE THREE APPEALS FILED BY TH E ASSESSEES ARE ALLOWED. ORDER PRONOUNCED ON 31.07.2012 SD/- SD/- (H.L. KARWA) (T.R. SOOD) VICE PRESIDENT ACCOUNTANT MEMBER DATED: 31.07.2012 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/ THE DR 5