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TMI Blog2016 (7) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of sec. 153C of the Act were applicable in the present case for framing the assessment, if any, which excludes the application of sec. 147 of the Act, hence, notice issued under sec. 148 of the Act and assessment framed in furtherance thereto under sec. 147 read with section 143(3) of the Act are void ab initio. The reassessment in question is accordingly quashed. - Decided in favour of assessee - ITA No. 2430/Del/2015 - - - Dated:- 20-5-2016 - Shri I. C. Sudhir And Shri L. P. Sahu For the Assessee : Shri PC Yadav, Adv For the Department : Shri Rajesh Kumar Kedia, Sr. DR ORDER Per I. C. Sudhir: Judicial Member The assessee has questioned first appellate order on the following grounds : 1. That Learned CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Wing of the Department initiated reopening proceedings under sec. 147 of the Act after recording reasons to belief that there was escapement of assessment of taxable income. The Assessing Officer had received information that a search seizure operation under sec. 132 of the Act was carried out by the Director of Income-tax (Inv.) on 06.09.2011 on the Rockland Group of Cases. After going through the information received as well as the documents available in the office of the Assessing Officer, the Assessing Officer found that Rockland Hospital Ltd. (in short RHL ) had issued sweat equity shares without any amount being paid as consideration to the directors/employees/professionals. In this chain, the assessee had also received sweat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value and premium of the shares issued and debited the assets side by creating a fictitious assets, namely, intellectual property rights. The Learned AR submitted that when the mistake committed by RLH was pointed out by the auditors, RLH moved before the Hon ble High Court of Delhi and Hon'ble High Court after considering the entire facts and law reversed the entry of premium vide its order dated 26.2.2010. As a result of the order of the Hon'ble High Court, RLH reversed the entries of premium and subsequently took back all the sweat equity shares from the professional and transferred those shares to some trust. Meaning thereby, that at the time of assumption of jurisdiction by the Assessing Officer under sec. 147, everything was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer under sec. 147 is also not tenable for the simple reason that provisions of sec. 153C of the Act are applicable in this case and not the provisions laid down under sec. 147 of the Act. He submitted that it is an admitted position of the fact as it is also evident from the assessment order that the Assessing Officer has initiated reassessment proceedings in the present case on the basis of information received based on the material found during the course of search from the premises of RLH. The Learned AR contended that provisions of sec. 153C provides that persons relating to whom some material is found in search of some other person should be assessed under sec. 153C of the Act. The provisions of section 153C are non-obsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee before the Learned CIT(Appeals) and the Learned CIT(Appeals) vitiated the proceedings. The same was questioned by the Revenue before the ITAT and the ITAT after discussing the cases of the parties and the relevant provisions in details has come to the conclusion that in the above situation, provisions of sec. 153C were applicable which excludes the application of sections 147 and 148 of the Act. The ITAT held the notice issued under sec. 148 and proceedings under sec. 147 as illegal and void ab initio. It was held that Assessing Officer having not followed procedure under sec. 153C, reassessment order was rightly quashed by the Learned CIT(Appeals). In the present case before us, it is an admitted fact, as also evident from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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