2021 (12) TMI 1514 - AT - Income Tax

Assessment u/s 147 or 153C - documents found during a search - HELD THAT - Incumbent upon the AO to proceed against the assessee in light of provisions of section 153C of the Act as provisions of section 153C of the Act covers the situation where an alleged incriminating document pertaining to an assessee is found during search at third party premises. The provisions of section 153C of the Act are non-obstante provisions and the same specifically excludes the operation of Section 147 of the act. Therefore, in our considered opinion, the AO in the present case has grossly erred in invoking the provisions of section 147 instead of section 153C of the Act. We are of the considered view that if the alleged action of the AO u/s 147 of the Act is permitted on the basis of documents found in the course of search of third parties premises, then provisions of section 153C of the Act would become redundant. Considering the facts of the case in totality, in light of the relevant provisions of the Act, we have no hesitation in quashing the assessment order qua Ground No. 1.3 making all other grounds of appeal otiose.

Summary

The appeal was against the order of the Commissioner of Income Tax [Appeals] - 09, New Delhi dated 26.11.2019 for A.Y 2011-12. The Assessing Officer erred in invoking section 147 instead of section 153C of the Act based on documents found during a search. The Tribunal quashed the assessment order on Ground No. 1.3, allowing the appeal of the assessee in ITA No. 592/DEL/2020.