Commissioner Of Income Tax-Ill, Pune v. Sinhgad Technical Education Society

[2017] 8 S.C.R. 463 COMMISSIONER OF INCOME TAX-Ill, PUNE v. SINHGAD TECHNICAL EDUCATION SOCIETY (Civil Appeal No. 11080 of 2017) AUGUST 29, 2017 [A. K. SIKRI AND ASHOK BHUSHAN, JJ.I Income Tax Act, 1961: s.153C - Proceedings under - Validity of-Assessment order - Pursuant to the notice u/s. l 53C - Against respondent-assessee --(a charitable educational institution) Appeal against Before · Commissioner of Income Tax (Appeals) - Partially allowed - Jn appeal before Income Tax Appellate Tribunal (JTAT) additional ground pertaining to jurisdiction uls. l 53C raised - ITAT quashed the notice/proceedings u/s. l 53C in respect of four assessment years 0 - Order of ITAT confirmed by High Court - On appeal, held: ITAT rightly permitted the additional ground to be raised and correctly dealt with the ground on merit as well - However, it is clarified that by this judgment the Court has not given any clean chit to the assessee insofar as the findings to the effect that the assessee had been indulging in profiteering and collecting capitation fee. Dismissing the appeals, the Court HELD: 1. So far as permissibility to raise the additional ground pertaining to jurisdiction under Section 153C of the Income Tax Act, 1961, is concerned, the Income Tax Appellate Tribunal (ITAT) permitted this additional ground by giving a reas·on that it was a jurisdictional issue taken up on the basis of facts already on the record and, therefore, could be raised. In this behalf, it was noted by the ITAT that as per the provisions of Section 153C of the Act, incriminating material which was seized had to pertain to the Assessment Years in question and it is an undisputed fact that the documents which were seized did not establish any co-relation, document-wise, with these four Assessment Years. Since this requirement under Section 153C of the Act is essential for assessment under that provision, it becomes a jurisdictional fact. The reasoning is logical and valid, A having regard to the provisions of Section 153C of the Act. The ITAT had scanned through the Satisfaction Note and the material which was disclosed therein was culled out and it showed that the same belongs to Assessment Year 2004-05 or thereafter. Thus, the ITAT rightly permitted this additional ground to be raised B and correctly dealt with the same ground on merits as well. Order of the High Court affirming this view of the Tribumtl is, therefore, without any blemish. [Paras 18 , 1911472-D-Gf 463 463