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2024 (11) TMI 1106 - HC - Income TaxValidity of assessment u/s 153C or 147/148 - information was received through insight portal from the Investigation Wing to the effect that the petitioner was a beneficiary of accommodation entries provided by one Sh. Joginder Pal Gupta (DAG Group) - HELD THAT - It is not disputed that in the present case, the AO was not handed over any books of accounts or material by the AO of the searched person (Sh. Joginder Pal Gupta of DAG Group). Thus, the necessary threshold condition for the AO of the Assessee, initiating the proceedings u/s 153C of the Act was not satisfied. Thus, in any event the AO was not precluded from initiating proceedings u/s 148A of the Act on the basis of the information available on the insight portal, which is suggestive of the fact that the petitioner s income for AY 2015- 16 had escaped assessment. The present case is covered squarely by the decision of the Supreme Court in Principal Commissioner of Income Tax v. Abhisar Buildwell (P.) Ltd. 2023 (4) TMI 1056 - SUPREME COURT as the jurisdictional condition for the AO of the Assessee to assume jurisdiction u/s 153C of the Act was not satisfied The question whether the provisions of Section 153C of the Act precludes recourse to reopening assessments u/s 147/148 of the Act, on the basis of information found during the search conducted u/s 132 or requisition made u/s 132A of Act in respect of another person, is also covered against the petitioner.
Issues:
Impugning an order under Section 148A(d) of the Income Tax Act, 1961 and a notice issued under Section 148 of the Act for Assessment Year 2015-16. Jurisdiction of the Assessing Officer to proceed under Section 147/148 of the Act in relation to information obtained during search proceedings under Section 132 of the Act. Interpretation of provisions of Section 153C of the Act in relation to reopening assessments under Section 147/148 based on information from search proceedings under Section 132. Analysis: The petitioner challenged an order and notice issued under the Income Tax Act for Assessment Year 2015-16, alleging the petitioner's involvement in accommodation entries provided by another individual. The petitioner disputed the accuracy of the information provided, specifically denying a fictitious loan transaction and asserting repayment of advances received. The petitioner contended that the Assessing Officer lacked jurisdiction under Section 147/148, arguing that proceedings should have been initiated under Section 153C due to information from a search of a different individual. The court considered the jurisdictional issue and the applicability of Section 153C. The court noted that the Assessing Officer did not receive any material from the searched person, failing to meet the conditions for invoking Section 153C. Consequently, the court held that the Assessing Officer was not barred from initiating proceedings under Section 148A based on information available on the insight portal indicating potential escaped income for the relevant assessment year. The court relied on the Supreme Court decision in Principal Commissioner of Income Tax v. Abhisar Buildwell (P.) Ltd. to support its findings on jurisdiction under Section 153C. Additionally, the court addressed the argument that Section 153C precludes reopening assessments under Section 147/148 based on information from search proceedings under Section 132. Referring to a previous decision, the court found that the provisions of Section 153C do not prohibit recourse to reopening assessments under Section 147/148 in such circumstances. The court dismissed the petition based on the above analysis and legal precedents, affirming the Assessing Officer's jurisdiction under Section 148A and clarifying the relationship between Sections 147/148 and 153C in the context of information obtained from search operations.
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