SHRI RAJESH KUMAR MANCHHANI,JABALPUR vs. INCOME TAX OFFICER WARD 1(1), JABALPUR

This appeal of the assessee is directed against the order of CIT(A)-1, Jabalpur dated 04.07.2018 and pertains to AY 2010-11.

Shri H.S. Modh, ld. counsel for the assessee submitted that the orginal assessment u/s. 143(3) was completed by an order dated 18.03.2013. Subsequently, the Assessing Officer issued notice u/s. 153C on 25.3.2013 and passed an order on 28.2.2014. Since the Assessing Officer passed an order u/s. 153C on 28.02.2013, the order passed under 143(3) on 18.3.2013 cannot stand in the eyes of law. Therefore, it is not non est in the eyes of law. 3. On the contrary, the ld. Departmental Representative submitted that a small addition was made in the assessment u/s. 143(3) and the same was confirmed by the CIT(A). Therefore, he is placing his reliance on the (AY 2010-11) Rajesh KumarManchhani v. ITO observation made by the ld. CIT(A) on the impugned order. On a query from the Bench regarding the date of receipt of the search document by the assessing officer, the ld. DR submitted that the said information was not available on record, therefore, this Tribunal directed the AO to join the video conference meeting today i.e. 18.11.2020. Accordingly, Mr. Mahesh Shukla,the assessing officer joined the video conference and he clarified that presently the search material was not available on record and on a further query from the Bench that when the search material is not available on record how the notice u/s. 153C was issued, he could not explain the reasons for issuing notice u/s. 153C, properly. The Assessing Officer further clarified that due to bifurcation of the Department, the search material, which was received from the other officer was not traceable in spite of his best effort, therefore, the search material is not available on record. The Assessing Officer as well as the Departmental Representative could not clarify the date of receipt of the search material from the AO of the searched person.

Having heard the ld. counsel for the assessee, Departmental Representative and the Assessing Officer, this Tribunal is of the considered opinion that on the date of search, if the assessment proceedings are pending, that will abate and the Assessing Officer has to pass a consolidated assessment order in respect of the return filed prior to date of search and also on the basis of material found during the course of search operation. In case the assessment proceedings are not pending on the date of search, then two orders can be passed, one in respect of return filed u/s. 139(1) and another order relating to material found during the course of search operation. In respect of the person other than the searched person the date of receipt of search material from the other officer would be the relevant date. In other words, the date on which the Assessing Officer received the document i.e. the material unearthed during the course of search from the searched person, the assessment proceedings are pending, then that will abate, the Assessing Officer has to pass single and composite order under 153C. However, on the date of receipt of the search material, the assessment proceedings are not pending and completed, then the Assessing Officer has the option of passing another order u/s. 153C with reference to material found during the course of search operation.In that case the order already passed under section 143(3)

In the result, appeal of the assessee stands allowed.