ACIT, BANGALORE vs. M/S GOLF VIEW HOMES PVT. LTD., BANGALORE

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ITA 1362/BANG/2012Status: DisposedITAT Bangalore31 May 2016AY 2003-049 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer had not properly assumed jurisdiction under Section 153C as no incriminating material relating to the assessee was found during the search. Therefore, the additions made were unsustainable.

What were the facts?

A search was conducted at India Builders Corporation, and subsequently, a notice under Section 153C was issued to M/s. Golf View Homes Pvt. Ltd. The Assessing Officer made additions based on this notice, but the CIT(Appeals) deleted them. The Revenue appealed this deletion.

What were the issues?

Whether the assessment under Section 153A read with Section 153C is valid in the absence of incriminating material found during the search, and whether completed assessments can be reopened without such material.

Which sections of the Income-tax Act were involved?

Section 153A,Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH : BANGALORE

Before: SHRI SUNIL KUMAR YADAV & SHRI ABRAHAM P. GEOERGE

For Appellant: Dr. Sibichen K. Mathew, CIT-III(DR)
For Respondent: Shri S. Ramasubramanian, CA
Hearing: 26.05.2016Pronounced: 31.05.2016

per the provisions of section 153C, notice can only be issued to a person with respect to whom some incriminating material is found and the AO forms a belief that this material relates to the said person. Unless and until the AO forms a belief that such seized material belongs to the third person, the provisions of section 153C cannot be invoked. In the instant case, nothing is brought on record as to what was the incriminating material found during the course of search which relates to the assessee. Therefore, we are of the view that the AO has not assumed jurisdiction to issue notice u/s. 153C of the Act to the assessee. Therefore, we find ourselves in agreement with the findings of the CIT(Appeals). Accordingly, we confirm his order.

8.

In the result, the appeals of the Revenue are dismissed.

Pronounced in the open court on this 31st day of May, 2016.

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