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Income Tax Appellate Tribunal, BANGALORE BENCHES “ A ” BENCH: BANGALORE
Before: SHRI A.K. GARODIA & SHRI PAVAN KUMAR GADALE
O R D E R
PER SHRI PAVAN KUMAR GADALE, JM :
The assessee has filed appeals against common order of Commissioner of Income Tax (Appeals), Mysore for the Assessment Years 2006-07 & 2007-08, the order was passed under Section 153C r.w.s. 143(3) and 250 of the Income Tax Act, 1961 ('the Act') and for the Assessment Year 2008-09 order was passed under 2 to 1008/Bang/2013 Section 143(3) and 250 of the Act. Since the issues involved in all these three appeals are similar and identical, they are clubbed and heard together and common order is passed. For the sake of convenience we take up and facts narrated therein.
The assessee has raised the following grounds of appeal :
4 to 1008/Bang/2013 3. The assessee is engaged in the business of ore crushing contract and there was a search under Section 132 of the Act and Notice under Section 153A was issued. The assessee has filed Return of Income on 6.10.2009 and in response to Notice under Section 143(2) of the Act the learned Authorised Representative appeared from time to time and produced the details as called for. The Assessing Officer on perusal of the financial statement found that there is a difference in the cash balances and further sundry creditors are not proved and accordingly made addition to the income returned and assessed total income of Rs.1,62,75,100. Aggrieved by the order the assessee has filed an appeal with the CIT(Appeals) whereas the CIT(Appeals) has confirmed the order of Assessing Officer. Aggrieved by the order of the CIT(Appeals), the assessee has filed an appeal before the Tribunal.
At the time of hearing, the learned Authorised Representative submitted that the order passed by the Assessing Officer under Section 153C r.w.s. 143(3) of the Act is bad in law. The contention of the learned Authorised Representative that the search proceedings conducted on the assessee and Notice ws issued under Section 153A of the Act and and order was passed under Section 153C of the Act. The learned Authorised Representative has argued and restricted his submissions on this technical / legal issue of Section 153A and 153C of the Act. Contra, the learned Departmental Representative supported the orders of the CIT(Appeals).
We heard the rival contentions and perused the material on record. Prima facie, the learned Authorised Representative has argued only to the extent of grounds of appeal relate to technicalities of passing assessment order, where the Assessing Officer has passed under Section 153C of the Act. On perusal of the assessment order, there was search operations under Section 132 of the Act on 26.10.2007 and documents relating to the assessee were seized. Hence Notice under Section 153A of the Act was issued. When a query was raised to ld. AR on 5 to 1008/Bang/2013 challenging of jurisdiction and Notice issued. The ld. AR submitted that the assessment order was passed under Section 153C of the Act. We found the grounds of appeal
raised by the assessee before the appellate authority, CIT (Appeals) are that the assessee has challenged the issue of Notice under Section 153A of the Act and completion of assessment by Assessing Officer by passing order under Section 153C r.w.s. 143(3) of the Act. On perusal of the learned CIT(Appeals) order, we found that the learned CIT(Appeals) has only confirmed the additions made by the Assessing Officer, but on the issue of Ground Nos. 2.1 and 2.2 in respect of validity of Notice and Assessment, there is no findings and the learned Authorised Representative further submitted that the CIT(Appeals) has not given any findings on the alleged issue of Notice under Section 153A of the Act and validity of assessment under Section 153C r.w.s. 143(3) of the Act. We considering the overall aspects and provisions and observations in the CIT(Appeals) order are of the opinion that the CIT(Appeals) has not given findings on the legality of issue of Notice under Section 153A and passing of assessment order under Section 153C r.w.s. 143(3) of the Act. Therefore, we set aside the order of CIT(Appeals) and restore the entire disputed issue to the file of CIT(Appeals) for adjudication afresh to decide the technical grounds on legality mentioned in Ground Nos.2.1and 2.2 and if the assessee fails on the technical ground, then decide the case on merits and pass a speaking order and the assessee should be provided adequate opportunity of hearing in submitting the information and shall co-operate in submitting the information for early disposal of the appeal and the grounds of appeal of the assessee are allowed for statistical purposes.
6. Similarly, the assessee has filed appeals in ITA Nos.1007 & 1008/Bang/2013 for the Assessment Years 2007-08 & 2008-09 where the issues are identical and same decision as held in Asst. Year 2006-07 shall apply. Accordingly these appeals are also restored to the file of 6 ITA Nos.1006 to 1008/Bang/2013 learned CIT(Appeals) for adjudication afresh with the above directions and allow the grounds of appeal of assessee for statistical purposes.