Venus Infrastructure & Developers Pvt Ltd vs Dy. CIT
This is a bunch of 107 appeals; out of which 71 appeals are directed at the instance of the assessee, and 36 at the instance of the Revenue. In order to give logical end to the search, the ld.AO had issued notice under section 153A, 153C and 148 of the Income Tax Act as required in the particular case of an assessee, and directed them to file their return. The issue under the first proposition is, whether the proceedings initiated under section 153C are valid? According to the ld.counsel for the assessee, this proposition would be applicable on the 43 appeals mentioned in serial no.1 to 43 of the cause-title. Read more
Subsequent to 1.6.2015, the information embedded in the document is sufficient for taking action under section 153C, but prior to 1.6.2015 action under section 153C could be taken if documents belong to the person other than the searched person was found during the course of search. The AO will be in a position to pass assessment order only if during the course of search, any money, bullion, jewellery and other valuable article or thing, or the documents found belong to other person prior to 1.6.2015, and the AO of the searched person was satisfied that such documents disclosed undisclosed income. The documents belonged to the appellants considered under this compartment of the arguments were not found, rather certain information relating to the assessees were found to be embedded in these documents, but prior to 1.6.2015, jurisdiction under section 153C cannot be invoked on the basis of such information. Therefore, ITAT Ahmedabad allowed this preliminary ground of appeal raised by these 43 appellants (assessees) and quashed all these assessment orders passed in the appeals mentioned at serial no.1 to 43 of the cause title of this order. Thus all the appeals of the assessee are partly allowed whereas the Revenue’s appeal are dismissed.
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