J.M. Trading Corporation v. ACIT

20 SOT 489Income Tax Appellate Tribunal2008#6900 most cited

What is J.M. Trading Corporation v. ACIT authority for?

Section 153A assessment proceedings can only be initiated if a valid search under section 132 has been conducted against the assessee. If no valid search is conducted, the initiation of assessment proceedings under section 153A is invalid, bad in law, and without jurisdiction.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2026.

Also referred to as

J.M. Trading Corporation · ACIT · 20 SOT 489 · section 153A · section 132 · valid search · assessment proceedings · invalid assessment · jurisdiction

Sections most often in play

Section 131Section 132Section 132(4)Section 132(4A)Section 133ASection 142(1)Section 143(2)Section 153A

Issues it is cited on

section 158b(b)section 153b(1)section 158bdsection 158bcsection 144baassistant directorsurvey under section 133apanchnamasection 158bsection 153bsection 158section 292c

Judgments citing J.M. Trading Corporation v. ACIT

DCIT Central Circle -2(2), Pune vs. Ramesh Pannalal Ranka, Pune

In the result, the appeal in IT(SS)A Nos

ITA 2944/PUN/2025[2014-15]Status: DisposedITAT Pune21 Apr 2026AY 2014-15

Bench: Shri R. K. Panda & Ms. Astha Chandrait(Ss)A Nos.31 & 32/Pun/2025 Assessment Years : 2013-14 & 2014-15 Ramesh Pannalal Ranka Dcit, Central Circle 2(2), Plot No.42, Premnagar Society, Vs. Pune Pune Satara Road, Pune – 411037 Pan: Aazpr9440C (Appellant) (Respondent) Assessment Year : 2014-15 Dcit, Central Circle 2(2), Ramesh Pannalal Ranka Pune Vs. Plot No.42, Premnagar Society, Pune Satara Road, Pune – 411037 Pan: Aazpr9440C (Appellant) (Respondent) Assessee By : Shri Suhas Bora & Ca Sampada Ingale Department By : Shri Amit Bobde, Cit Date Of Hearing : 24-03-2026 Date Of Pronouncement : 21-04-2026

For Appellant: Shri Suhas Bora and CA Sampada IngaleFor Respondent: Shri Amit Bobde, CIT
Section 131Section 132Section 132(4)Section 133ASection 142(1)Section 143(2)Section 153C

…panchanama or the date of panchanama. It does not state that the panchanama is a precondition for invoking the said section. 25. Referring to the decision of the Mumbai Bench of the Tribunal in the case of J.M. Trading Corporation vs. ACIT reported in (2008) 20 SOT 489 (Mum) he submitted that the Tribunal in the said decision has held that mere mentioning of name in panchnama does not lead to conclusion that a valid search was conducted against the assessee. 26. Referring to the order of the Ld. CIT(A) he submitted that the Ld. CIT(A) has reproduced the search warrant in the case of Sinhagad Technical Education…

Deputy Commissioner of Income Tax Central Circle-2, Ludhiana vs. Ab Alcobev Private Limited, Delhi

In the result, appeals of Revenue are dismissed, Cross

ITA 360/CHANDI/2024[2020-21]Status: DisposedITAT Chandigarh01 Sept 2025AY 2020-21

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita Nos.356, 357, 358 & 360/Chd/2024 निर्धारण वर्ष / A.Y. : 2016-17, 2017-18, 2019-20 & 2020-21 The Dcit, Central Circle-2, Ludhiana. Vs Ab Alcobev Pvt. Ltd., 154, 1St Floor, Aggarwal Plaza-1, Anandvas Shakurpur, North West, Delhi. अपीलार्थी/Appellant स्थायी लेखा सं./Pan No: Aalca0327J प्रत्यर्थी/Respondent & C.O. Nos.17 To 20/Chd/2025 In

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Manav Bansal, CIT DR
Section 132Section 153ASection 153CSection 153DSection 249Section 253Section 3Section 5

…can be made by the A.O., hence initiation of assessment proceeding u/s 153 A is invalid, bad in law & without jurisdiction." 1. 12. Reliance is being made on the following judgments on the above issue: - (i) J.M. Trading Corpn. Vs ACIT, as reported in [20081 20 SOT 489 (MUM) as per copy of order is placed in Judgement Set at serial no 1. (Refer page no. 1-9 of case law index book) "Section 153A, read with section 132 of the Income-tax Act, 1961 Assessment in case of search on requisition - Assessment years 1998-99 to 2001-02 and 2004-05 - Whether provisions of section 153A are only applicable in case valid searc…

Deputy Commissioner of Income Tax, Central Circle-2, Ludhiana vs. Ab Alcobev Private Limited, Delhi

In the result, appeals of Revenue are dismissed, Cross

ITA 358/CHANDI/2024[2019-20]Status: DisposedITAT Chandigarh01 Sept 2025AY 2019-20

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita Nos.356, 357, 358 & 360/Chd/2024 निर्धारण वर्ष / A.Y. : 2016-17, 2017-18, 2019-20 & 2020-21 The Dcit, Central Circle-2, Ludhiana. Vs Ab Alcobev Pvt. Ltd., 154, 1St Floor, Aggarwal Plaza-1, Anandvas Shakurpur, North West, Delhi. अपीलार्थी/Appellant स्थायी लेखा सं./Pan No: Aalca0327J प्रत्यर्थी/Respondent & C.O. Nos.17 To 20/Chd/2025 In

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Manav Bansal, CIT DR
Section 132Section 153ASection 153CSection 153DSection 249Section 253Section 3Section 5

…can be made by the A.O., hence initiation of assessment proceeding u/s 153 A is invalid, bad in law & without jurisdiction." 1. 12. Reliance is being made on the following judgments on the above issue: - (i) J.M. Trading Corpn. Vs ACIT, as reported in [20081 20 SOT 489 (MUM) as per copy of order is placed in Judgement Set at serial no 1. (Refer page no. 1-9 of case law index book) "Section 153A, read with section 132 of the Income-tax Act, 1961 - Assessment in case of search on requisition - Assessment years 1998-99 to 2001-02 and 2004-05 - Whether provisions of section 153A are only applicable in case valid sea…

Deputy Commissioner of Income Tax Central Circle-2, Ludhiana vs. Ab Alcobev Private Limited, Delhi

In the result, appeals of Revenue are dismissed, Cross

ITA 357/CHANDI/2024[2017-18]Status: DisposedITAT Chandigarh01 Sept 2025AY 2017-18

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita Nos.356, 357, 358 & 360/Chd/2024 निर्धारण वर्ष / A.Y. : 2016-17, 2017-18, 2019-20 & 2020-21 The Dcit, Central Circle-2, Ludhiana. Vs Ab Alcobev Pvt. Ltd., 154, 1St Floor, Aggarwal Plaza-1, Anandvas Shakurpur, North West, Delhi. अपीलार्थी/Appellant स्थायी लेखा सं./Pan No: Aalca0327J प्रत्यर्थी/Respondent & C.O. Nos.17 To 20/Chd/2025 In

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Manav Bansal, CIT DR
Section 132Section 153ASection 153CSection 153DSection 249Section 253Section 3Section 5

…can be made by the A.O., hence initiation of assessment proceeding u/s 153 A is invalid, bad in law & without jurisdiction." 1. 12. Reliance is being made on the following judgments on the above issue: - (i) J.M. Trading Corpn. Vs ACIT, as reported in [20081 20 SOT 489 (MUM) as per copy of order is placed in Judgement Set at serial no 1. (Refer page no. 1-9 of case law index book) ii) "Section 153A, read with section 132 of the Income-tax Act, 1961 - Assessment in case of search on requisition - Assessment years 1998-99 to 2001-02 and 2004-05 - Whether provisions of section 153A are only applicable in case valid…

Deputy Commissioner of Income Tax Central Circle-2 Ludhiana, Ludhiana vs. Ab Alcobev Private Limited, Delhi

In the result, appeals of Revenue are dismissed, Cross

ITA 356/CHANDI/2024[2016-17]Status: DisposedITAT Chandigarh01 Sept 2025AY 2016-17

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita Nos.356, 357, 358 & 360/Chd/2024 निर्धारण वर्ष / A.Y. : 2016-17, 2017-18, 2019-20 & 2020-21 The Dcit, Central Circle-2, Ludhiana. Vs Ab Alcobev Pvt. Ltd., 154, 1St Floor, Aggarwal Plaza-1, Anandvas Shakurpur, North West, Delhi. अपीलार्थी/Appellant प्रत्यर्थी/Respondent स्थायी लेखा सं./Pan No: Aalca0327J & C.O. Nos.17 To 20/Chd/2025 In

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Manav Bansal, CIT DR
Section 132Section 153ASection 153CSection 153DSection 249Section 253Section 3Section 5

…can be made by the A.O., hence initiation of assessment proceeding u/s 153 A is invalid, bad in law & without jurisdiction." 1. 12. Reliance is being made on the following judgments on the above issue: - (i) J.M. Trading Corpn. Vs ACIT, as reported in [20081 20 SOT 489 (MUM) as per copy of order is placed in Judgement Set at serial no 1. (Refer page no. 1-9 of case law index book) ii) "Section 153A, read with section 132 of the Income-tax Act, 1961 - Assessment in case of search on requisition - Assessment years 1998-99 to 2001-02 and 2004-05 - Whether provisions of section 153A are only applicable in case valid…

The Deputy Commissioner of Income-Tax, Central Circle-1, Mangaluru vs. M/S. Blueline Foods (India) Pvt. Ltd., Mangaluru

ITA 182/BANG/2023[2017-18]Status: DisposedITAT Bangalore07 Aug 2024AY 2017-18

Bench: Shri George George K & Shri Laxmi Prasad Sahu

For Appellant: Revenue byFor Respondent: Date of hearing
Section 132Section 143(3)Section 153ASection 153CSection 255(4)

…irectors or shareholders, given that a company, as a body corporate, would only have business premises. 17. Apart from being bizarre, this argument is in violation of the following decision of the Mumbai Tribunal reported in J.M. Trading Corpn. V. ACIT [2008] 20 SOT 489 (Mum. Trib.)], which was upheld by the Hon’ble Bombay High Court in CIT v. J.M. Trading Corporation [2009] ITA No. 276/2009 (Bom.) and endorsed by the Hon’ble Supreme Court in CIT v. J.M. Trading Corporation [2010] CC No. 19194/2010 (SC): “Mere mentioning of name in the panchnama does not lead to the conclusion that a valid search was conducted ag…

Dy CIT CC 4(3), Mumbai vs. Shri. Rajesh Omprakash Agrawal, Thane

In the result ground number 1

ITA 1284/MUM/2020[2015-16]Status: DisposedITAT Mumbai01 May 2023AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Dcit(Cc)4(3) Rajesh Omprakash Agrawal R No. 1921, 19Th Floor, Air 16 Sai Shyam Chhaya Kopar India Bldg, Nariman Point, Road, Dombivali West, Vs. Thane-421202 Mumbai-400 021 (Appellant) (Respondent) Dcit(Cc)4(3) Rajesh Omprakash Agrawal R No. 1921, 19Th Floor, Air 16 Sai Shyam Chhaya Kopar India Bldg, Nariman Point, Road, Dombivali West, Vs. Thane-421202 Mumbai-400 021 (Appellant) (Respondent) Pan No. Adypa5448F Assessee By : Shri. Ajay Daga, Ashok Bansal Revenue By : Ms Ridhi Mishra (Cit Dr) Date Of Hearing: 02.02.2023 Date Of Pronouncement : 01.05.2023

For Appellant: Shri. Ajay Daga, Ashok BansalFor Respondent: Ms Ridhi Mishra (CIT DR)
Section 10Section 132Section 133ASection 142Section 143Section 153ASection 153C

…lry was found. Based on this notice under section 153A of the act was issued to the assessee. This is challenged by the assessee. The assessee has also supported his argument relying upon the decision of the coordinate bench in case of JM trading Corporation [20 SOT 489] wherein paragraph number 21-22 wherein it has been held that is a condition precedent to be satisfied before start of any proceedings against the assessee the search only should not have been merely initiated but conducted. The tribunal is required to verify whether the jurisdictional facts exist before notice can be issued under section 158BC. I…

M/S New Viraj Housing Agency, Nagpur vs. ACIT, Central Circle-1(1), Nagpur

In the result, the appeals filed by the assessee for all the three years is allowed

ITA 183/NAG/2017[2010-11]Status: DisposedITAT Nagpur28 Jun 2022AY 2010-11

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am

For Appellant: Shri Sudesh Banthia CAFor Respondent: Shri Piyush Kolhe (CIT-DR)
Section 132Section 133ASection 133A(3)(ia)Section 139Section 143(2)Section 153ASection 153C

…d on the decisions of ITAT Raipur bench in ACIT Vs M/s S.P.Cold Storage in ITA Nos 142 to 147/BLPR/2012 , ITAT, Mumbai bench in the 5 ITA183/NAG/2017 NEW VIRAJ HOUSING AGENCY VS ACIT , C.C. 1(1), NAGPUR case of J.M. Trading Corpn. Vs. ACIT reported in (2008) 20 SOT 489 (Mum.)& ACIT vs. Sarvmangalam Builders & Developers Pvt. Ltd. in ITA No.196 to 198/Del/2011. The Ld. Counsel for assessee further contended that the additions have not been made on the basis of any incriminating material found during search. He argued that since, no search was conducted in the case of assessee, hence no question of finding any inc…

M/S.Balaji Bullion & Commodities (India) Private Limited, Mumbai vs. DCIT Central Circle-40, Mumbai

In the result, both the appeals are allowed

ITA 1291/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Apr 2022AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Amarjit Singh, Jm Balaji Bullion & Commodities The Dy. Commissioner Of (India) Private Limited Income–Tax, 118/120, 3Rd Floor, Ashoka Central Circle–40, Vs. House Zavri Baazar, Mumbai Mumbai-400 002 (Appellant) (Respondent) Pan No. Aadcbo236F Balaji Universal Tradelinks P. The Dy. Commissioner Of Ltd. Income–Tax, 118/120, 3Rd Floor, Ashoka Central Circle–40, Vs. House Zavri Baazar, Mumbai Mumbai-400 002

For Appellant: Shri N.M. Porwal, AdvFor Respondent: Shri Dr. Mahesh Akhade, CIT DR
Section 10ASection 153ASection 153BSection 37Section 68

…upon the firm, the Hon’ble High Court held that procedure laid down u/s 158 BD has to be followed, thus, the ratio laid down by Hon’ble jurisdictional High Court supports the case of the assessee. The ratio laid down in J.M. Trading Corporation vs ACIT (2008) 20 SOT 489 (Mum.), which was upheld by the Hon’ble jurisdictional High Court in ITA No. 589 of 2009 holding that provisions of section 153A are only applicable in a case, where valid search is conducted against the assessee u/s 132 of the Act, supports the case of the assessee. 2.14. For fair conclusion, we are also reproduced hereunder the provision of sec…

Regency Mahavir Properties, Pune vs. ACIT Cen Cir 1, Thane

In the result, the appeals of the assessee are allowed

ITA 682/MUM/2016[2007-08]Status: DisposedITAT Mumbai04 Jan 2018AY 2007-08

Bench: Shri P K Bansal & Shri Ravish Sood

For Appellant: Shri Sunil U Pathak & Smt Geetaa GuwalaniiFor Respondent: Shri Awungshi Gimson
Section 132Section 153A

…s premises at 5th Avenue, Dhole Patil Road, Pune. The conduct of the search and drawing of the panchnama are the preconditions for issue of notice u/s. 153A and 153A(1)(b). In this regard reliance was placed on the decision of J M Trading Corporation vs. ACIT 20 SOT 489 (Mum); Dr. Mansukh Kanjibhai Shah v. ACIT 36(II) ITCL 62 (Ahmedabad ‘D’ Bench of the Tribunal); CIT vs. Wipro Finance Ltd. 323 ITR 467 (Kar) and CIT vs. Kurban Hussain Ibrahimji Mithiborwala 82 ITR 821 (SC). Thus, on the basis of these decisions, it was submitted that since the assessment u/s 153A is based on a invalid notice issued u/s. 153A t…

Unique Star Developers, Mumbai vs. DCIT CC 47, Mumbai

In the result, the appeal of the assessee is allowed

ITA 1077/MUM/2014[2008-09]Status: DisposedITAT Mumbai11 May 2017AY 2008-09

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri Sashi Tulsiyan
Section 153ASection 80I

…M/s Harsh Deep Construction V/s DCIT in ITA Nos.1941 and 1942 /Mum/2014(AY-2008-09) dated 11.5.2016,(iii)Special Bench of the Delhi Tribunal in the case of Promain Ltd V/s DCIT reported in (2006)95 11 ITD 489 (SB)(iv) J M Trading Corporation V/s ACIT (2008) 20 SOT 489 and (v) Delhi Bench of the Tribunal in the case of Sarvamangalam Builders and Developers Pvt ltd V/s ACIT in ITA No.115 to 117/Del/2011. In the Special Bench decision, the ld. AR highlighted that it is not only initiation of search which was required to be proved by warrant of search authorizing search but the AO has to prove that the search has a…

Asst CIT Cir 2, Thane vs. Salasar Developers, Thane

The appeals of the Revenue are dismissed

ITA 4513/MUM/2014[2006-07]Status: DisposedITAT Mumbai04 Apr 2017AY 2006-07

Bench: Shri Joginder Singh & Shri N.K. Pradhan

Section 132Section 132(3)Section 133ASection 143(3)Section 153A

…upon the firm, the Hon’ble High Court held that procedure laid down u/s 158 BD has to be followed, thus, the ratio laid down by Hon’ble jurisdictional High Court supports the case of the assessee. The ratio laid down in J.M. Trading Corporation vs ACIT (2008) 20 SOT 489 (Mum.), which was upheld by the Hon’ble jurisdictional High Court in ITA No. 589 of 2009 holding that provisions of section 153A are only applicable in a case, where valid search is conducted against the assessee u/s 132 of the Act, supports the case of the assessee. 2.14. For fair conclusion, we are also reproduced hereunder the provision of sect…

Asst CIT Cir 2, Thane vs. Salasar Developers, Thane

The appeals of the Revenue are dismissed

ITA 4512/MUM/2014[2005-06]Status: DisposedITAT Mumbai04 Apr 2017AY 2005-06

Bench: Shri Joginder Singh & Shri N.K. Pradhan

Section 132Section 132(3)Section 133ASection 143(3)Section 153A

…upon the firm, the Hon’ble High Court held that procedure laid down u/s 158 BD has to be followed, thus, the ratio laid down by Hon’ble jurisdictional High Court supports the case of the assessee. The ratio laid down in J.M. Trading Corporation vs ACIT (2008) 20 SOT 489 (Mum.), which was upheld by the Hon’ble jurisdictional High Court in ITA No. 589 of 2009 holding that provisions of section 153A are only applicable in a case, where valid search is conducted against the assessee u/s 132 of the Act, supports the case of the assessee. 2.14. For fair conclusion, we are also reproduced hereunder the provision of sect…

Asst CIT Cir 2, Thane vs. Salasar Developers, Thane

The appeals of the Revenue are dismissed

ITA 4511/MUM/2014[2004-05]Status: DisposedITAT Mumbai04 Apr 2017AY 2004-05

Bench: Shri Joginder Singh & Shri N.K. Pradhan

Section 132Section 132(3)Section 133ASection 143(3)Section 153A

…upon the firm, the Hon’ble High Court held that procedure laid down u/s 158 BD has to be followed, thus, the ratio laid down by Hon’ble jurisdictional High Court supports the case of the assessee. The ratio laid down in J.M. Trading Corporation vs ACIT (2008) 20 SOT 489 (Mum.), which was upheld by the Hon’ble jurisdictional High Court in ITA No. 589 of 2009 holding that provisions of section 153A are only applicable in a case, where valid search is conducted against the assessee u/s 132 of the Act, supports the case of the assessee. 2.14. For fair conclusion, we are also reproduced hereunder the provision of sect…

Balaji Universal Tradelink P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

The appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 2183/MUM/2013[2004-05]Status: DisposedITAT Mumbai31 Oct 2016AY 2004-05

Bench: Shri Joginder Singh & Shri Sanjay Arora

Section 132(3)Section 133ASection 143(3)Section 153A

…upon the firm, the Hon’ble High Court held that procedure laid down u/s 158 BD has to be followed, thus, the ratio laid down by Hon’ble jurisdictional High Court supports the case of the assessee. The ratio laid down in J.M. Trading Corporation vs ACIT (2008) 20 SOT 489 (Mum.), which was upheld by the Hon’ble jurisdictional High Court in ITA Nos.2183 to 2186/Mum/2013 & M/s Balaji Universal Tradelinks Pvt. Ltd. ITA No. 589 of 2009 holding that provisions of section 153A are only applicable in a case, where valid search is conducted against the assessee u/s 132 of the Act, supports the case of the assessee. 2.14.…

M/S Associated Mining Co, Bellary vs. Deputy Commissioner of Income Tax, Bangalore

In the result, all the six appeals of the assessee are allowed

ITA 1355/BANG/2014[2005-06]Status: DisposedITAT Bangalore18 Oct 2016AY 2005-06

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

Section 153A

…lid search was conducted against the assessee and therefore, the assessments orders passed u/s 153A are null and void. In support of this contention, he placed reliance on the tribunal order rendered in the case of J. M. Trading Corpn. Vs. ACIT as reported in 20 SOT 489. ITA No. 1355 to 1360/B/2014 3 3. As against this, learned DR of the revenue supported the orders of the authorities below. She also submitted that in Para 18 of this tribunal order cited by the learned AR of the assessee, it was shown by the assessee in that case that the premises in question was let out to a business group of companies and rent…

J.M. Trading Corporation v. ACIT (20 SOT 489) — Cited in 16 Judgments | BharatTax