Documents seized during search of a person other than the person against whom assessment proceedings are initiated under section 153A: Basis for passing order under section 153C
Case Outcome: Assessee
- The Assessee was a company engaged in the business of purchasing and selling and developing of real estate. A search and seizure operation under section 132 of the Act, 1961 was conducted by the Investigation Wing of the Department on 22.03.2011 in the Amtek Group of cases. The premises of M/s Excel Infotech Pvt. Ltd. & others, 9, Tolstoy Marg, Connaught Place, New Delhi was also covered under section 132(1) of the Income-tax Act, 1961 which was a group company of Amtek Group.
- The documents belonging to the Assessee, New Delhi- 110001 were also found and seized from the premises of M/s Excel whose name search warrant of authorization was issued. The Assessee’s case was proposed for centralization by the Investigation Wing for coordinated investigation and assessment under section 153C and subsequently it was centralized with Central Circle- 14, New Delhi vide order F.No CIT(C) Centr/2012- 13/239 dated 25.04.2012. Accordingly notice under section 153C of the Income Tax Act was issued to the Assessee on 08.11.2012.
- Reliance was placed on the various decisions in the cases of NS Software , Pepsico and Canyon Financial Services Ltd. vs. ITO, wherein it had been concluded that in absence of conclusion either in satisfaction note that the seized documents mentioned there in belonged not to the searched person, but, to the Assessee makes the 153C proceedings invalid.
- In the present case, no satisfaction has been recorded in the file of the searched person that the seized documents belonged to the other party and did not belong to the searched person. Therefore, it was inferred that the jurisdiction assumed under section 153C in the case of the Assessee was not in accordance with law.
- Issue Outcome: In favour of Assessee
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