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TMI Blog2018 (4) TMI 1607X X X X Extracts X X X X X X X X Extracts X X X X ..... assed under section 148 of the Act does not stand. The Assessing Officer is thus, directed to cancel the same. Consequently, the additional ground of appeal raised by the assessee is allowed and we hold that assessment framed by the Assessing Officer is null and void. - Decided in favour of assessee. - ITA No.1971/PUN/2014, ITA No 1972/PUN/2014, ITA No. 2056/PUN/2014, ITA No.2057/PUN/2014 - - - Dated:- 24-4-2018 - MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM Assessee by : Shri Nitin Khare Revenue by : Ms. Nirupama Kotru, CIT ORDER PER SUSHMA CHOWLA, JM: Both the cross appeals filed by related assessee and Revenue are against separate orders of CIT(A)-V, Pune, both dated 27.08.2014 relating to assessment year 2006-07 against respective orders passed under section 143(3) r.w.s. 147 of the Income-tax Act, 1961 (in short the Act ). 2. The cross appeals filed by related assessee and Revenue were heard together and are being disposed of by this consolidated order for the sake of convenience. In order to adjudicate the issues, reference is being made to the facts in ITA No.1971/PUN/2014 2057/PUN/2014. 3. During the course of arguments, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is admitted for adjudication. 7. Briefly, in the facts of the case, the assessee had furnished return of income in time which was processed under section 143(1) of the Act. The Assessing Officer in the case, had received information from the Office of the Deputy Director of Income Tax (Inv), Unit II(1), Pune vide letter dated 30.03.2013. Based on the above said information, the Assessing Officer made proposal for initiating proceedings under section 147 of the Act. Information in this regard was received from the Addl.CIT, Range-8, Pune vide letter dated 30.03.2013. The Assessing Officer thereafter, issued notice under section 148 of the Act, dated 30.03.2013. The reasons recorded by the Assessing Officer for issue of notice under section 148 of the Act are reproduced at pages 2 to 8 of the assessment order. The said reasons clearly note that search and seizure action under section 132 of the Act and survey action under section 133A of the Act were carried out at the residential premises of Shri Ganesh Khandge on 12.02.2013. During the course of search proceedings, it was found that Shri Vasant Laxman Khandge i.e. assessee before us, father of Shri Ganesh Khandge, al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding anything contained in sections 139, 147, 148, 149, 151 and 153 of the Act. The requirement of section 153C of the Act is the first satisfaction of Assessing Officer that any money, bullion, jewellery or other valuable article or thing or books of account or documents or assets belongs to a person other than the person referred in section 153A of the Act, then the books of account or documents or assets seized or requisitioned, shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person and issue notice of assessment or re-assessment of the income of other person in accordance with provisions of section 153A of the Act. The Assessing Officer has to record satisfaction that books of account or assets seized or requisitioned, have a bearing on determination of the total income of such other person. The said provisions are notwithstanding anything contained in sections as mentioned above including sections 147 / 148 of the Act. In other words, where the provisions of section 153C of the Act are attracted in given set of facts and the documents impounded during the course of search, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strued as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. .. (2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 147, 148, 151 and 153 of the Act. Accordingly, we hold that when during the course of search under section 132 of the Act at the residence of Mrs. Vasundhara S. Joshi and Shri Shailesh Joshi, loose paper bundle Nos.6, 7, 8 and 9 were found, which depicted the receipts and expenditure relating to different outlets being run under the partnership firms and the additional income was also offered by the persons searched on behalf of partnership firms, in which he was partner, on the basis of such documents found during the course of search, then for making addition in the hands of partners, provisions of section 153C of the Act are attracted. Once the said provisions are so attracted, then there is no question of initiating any proceedings under section 147 / 148 of the Act. Accordingly, we hold that proceedings initiated under section 147 / 148 of the Act are thus, not correctly initiated. 9. The issue raised in the present appeal is squarely covered by the issue before the Tribunal in Joshi Wadewale Hadapsar Vs. DCIT (supra) and following the same parity of reasoning, we hold that re-assessment proceedings initiated against the assessee under section 147 / 148 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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