The Tax Publishers2020 TaxPub(DT) 2779 (Mum-Trib)

INCOME TAX ACT, 1961

Section 133C

It is the date of search that has to be considered as relevant date for the purpose of applying amended provisions of section 153C(1). In assessee's case, search proceedings were conducted on third party on 24-9-2014, therefore, provisions of pre-amended section 153C (i.e., prior to amendment with effect from 1-6-2015) would be applicable. Accordingly, AO was not justified in assuming jurisdiction under section 153C over other person i.e. assessee as per post-amended section 153C having come into effect from 1-6-2015, considering date of issuance of section 153C notice i.e. 13-10-2016 as relevant.

Search and seizure - Assessment under section 153C - Applicability of pre-amended or post-amended section 153C - Relevant date, Date of conclusion of search or the date of issuance of section 153C notice

During the course of search in case of cosmos group it was found that details of unaccounted cash transactions were kept by Cosmos group by creating a buffer in two duplicate e-mail accounts, i.e., rbpt 2013 @gmail.com and rbptthaneyahoo.com in and no physical copy of such data was maintained. The said e-mails had certain attachment files comprising of tally files/tally backup files and excel sheets containing details of all unacounted transactions. in his statement recorded under section 132(4) promoter of Cosmos group stated that aforesaid attachment file contained information as regartds unaccounted cash sales of a project, viz., 'Cosmos Jewels' containing certain buildings that were constructed by Cosmos group in Joint venture with assessee-company, voz., M/s. Riddhi Siddhi Developers (P) ltd. which was the owner of plot on which aforesaid buildings were constructed and further as per terms of Joint Venture agreement, Cosmos group was to give 40% of sale component, i.e., both cash and cheque to assessee and none of cash component of project formed part of regular books of accounts or was offered to tax. Accordinlgy, AO assumed jurisdiction under section 153C over assessee and made addition on acount of 'on-money'. Assessee's case was that as no money, bullion, jewellery or other valuable artticle or thing or any books of accounts or documents belonging to assessee were seized in the course of search proceedings conducted on Cosmos group on 24-9-2014, therefore, no jurisdiction under section 153C could have validly been assumed by AO in its case. CIT(A) took the view that AO had issued notice under section 153C, dated 13-10-2016 which was received by assessee on 22-10-2016, and, therefore, AO had assumed jurisdiction in case of assessee under section 153C in October, 2016, therefore, post-amended provisions of section 153C, i.e., which had come into effect from 1-6-2015 would be applicable in its case. Held: It is the date of search that has to be considered as relevant date for the purpose of applying amended provisions of section 153C(1). As such, in the instant case, search proceedings were conducted on Cosmos group on 24-9-2014, therefore, provisions of pre-amended section 153C (i.e., prior to amendment with effect from 1-6-2015) would be applicable. Accordingly, assumption of jurisdiction by AO under section 153C was vacated for want of jurisdiction.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14


APPELLATE TRIBUNAL RULES, 1963

Rule 34(5)(c)

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