2025 (4) TMI 1361 - AT - Income Tax

Validity of the impugned section 143(3) assessment - initiate section 153C proceedings OR reopening u/s 148/147 - instant case involves the PCIT Kanpur s requisition which amounts to initiation of search attracting either section 153A proceeding in case of the searched person or under section 153C involving any third person - Unexplained money/cash - assessee s could not explain the source thereof during the course of hearing of assessment framed as upheld in the lower appellate discussion. HELD THAT - We are of the considered view that the Revenue s arguments carry no merit once it is a case of a requisition and the learned Assessing Authority has framed its assessment under the regular provisions i.e. under section 143(3) of the Act than either taking recourse of section 148/147 as the case may be. We thus see no reason to sustain the impugned assessment framed on 31st March 2022 which is hereby quashed in very terms. Assessee s appeal is allowed.

Summary

The Appellate Tribunal (ITAT Dehradun) quashed the assessment order dated 31.03.2022 framed under section 143(3) of the Income-tax Act, 1961, for AY 2020-21. The key issue was the validity of the assessment initiated following a requisition dated 06.04.2019 by PCIT, Kanpur, involving cash seized during vehicle checking and alleged to be unexplained money added under section 69 read with section 115BBE. The Revenue contended, relying on Delhi HC and other precedents, that reopening under section 148/147 or proceedings under section 153C could be invoked post-search/requisition. However, the Tribunal held that since the assessment was framed under regular provisions (section 143(3)) following a requisition, the assessment was invalid. It stated, "We thus see no reason to sustain the impugned assessment... which is hereby quashed in very terms." Consequently, all other grounds became academic, and the appeal was allowed.