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TMI Blog2014 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the Appellants, submits that this appeal raises substantial questions of law and which have been formulated at paragraph 5(1), (2) and (6). 3. In his submission, the Tribunal has completely misdirected itself in law. Mr Gupta submits that section 153C of the Income Tax Act 1961 has been brought on the statute book so as to enable assessment of the income of any other person. Mr Gupta submits that this section opens with a nonobstante clause and enables the Assessing Officer to proceed and assess the income of any other person. He submits that whenever the assessing Officer is satisfied that any money, bullion, jewelery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 153C of the Act was for applicability of the provisions of section 45(4) of the Act. That issue was already examined and no addition was found necessary under section 146(3) after scrutiny. Therefore, the documents do not have any incriminating material relevant for the assessment year in question. It is in such circumstance that the Tribunal observed that in the absence of any incriminating material, the proceedings under section 146(3) of the Act could not have been initiated. Mr Mistry heavily relied upon this factual position and it has been set out in paragraph 24 of the order passed by the Tribunal. Mr Mistry therefore submits that the finding cannot be read in isolation but must be read in the backdrop of the stand of the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDR that may have been handed over or taken over by retiring partner. However, whether that attracts the provisions of section 45(4) of the Act was an issue that was considered at length and the factual finding is that it being a stockintrade of the firm, the provision invoked was not applicable. That is how the Tribunal proceeded and held that merely because the document evidencing the transaction was in possession of the Department, it could not have issued notice to any other person within the meaning of section 153C of the Act particularly so as to reopen the concluded issue. It is in these circumstances that the Tribunal has made the observations in paragraph 25 of the order and which according to Mr Gupta, proceed on an incorrect rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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