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TMI Blog2021 (7) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... owhere in Section 147 are the provisions of Section 153 excluded. AO must, in choosing the provision to apply, bear in mind the statutory conditions set out and arrive at a decision having regard to the logistics and the efficacy of the provision chosen. In a case such as the present, the respondent has, in my view, arrived at the proper conclusion, bearing in mind the interests of revenue, to share the information found with the assessing officers of the third parties. He is in no position to arrive at statutory satisfaction in all the cases as to whether the name of the third party in the IVMS data is genuine/germane or otherwise. The decisions relied on by the petitioner proceed on the basis that the use of the non-obstante claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of one Laxmi Remote India Pvt. Ltd. (LRIPL), under Section 132 of the Act. In such case, the only recourse would, according to her, be the provisions of Section 153C of the Act and not Section 147. 4. LRIPL had been subject to search by the Income Tax Department and the Assessing Authority of LRIPL had found the petitioner s name appearing along with 500 other entities in the Inventory Management System data base of LRIPL. That officer thus, forwarded the information in regard to this petitioners engagement with LRIPL, under cover of communication dated 21.05.2018. The aforesaid communication as well as subsequent communications, exchanged between that Assessing Officer and the Assessing Officer of this petitioner, constitute internal c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable not just in the case of seized material containing particulars of third parties but also information found in the course of search, relatable to third parties. Thus, according to the petitioner, since information has been allegedly found relatable to this petitioner in the course of search of LRIPL, it is only jurisdiction under Section 153C that should have been assumed and not Section 147. 8. She relies on certain decisions of the Tribunal that support this view. Though some of the Tribunal decisions did travel to the High Court, those appeals, filed at the instance of the revenue, came to be closed on the basis of low monetary effect and thus there is no High Court that has considered this issue thus far. All the decisions c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based upon materials found in the course of search under Section 132. Also unquestionably, the provisions of Section 153C apply notwithstanding anything contained in other provisions including Section 147. This only means that the provisions of Section 153C can be invoked irrespective of whether a regular or re-assessment order had been framed originally. 12. The procedure under Section 153C requires the satisfaction of the following parameters: (a) A search in the premises of an entity/person under Section 132. (b) Incriminating material such as money, bullions, jewellery or other valuable article, which has been seized or requisitioned in the searched premises but belongs to a third party. (c) Books of accounts or documents t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the statutory conditions set out and arrive at a decision having regard to the logistics and the efficacy of the provision chosen. In a case such as the present, the respondent has, in my view, arrived at the proper conclusion, bearing in mind the interests of revenue, to share the information found with the assessing officers of the third parties. He is in no position to arrive at statutory satisfaction in all the cases as to whether the name of the third party in the IVMS data is genuine/germane or otherwise. 17. The decisions relied on by the petitioner proceed on the basis that the use of the non-obstante clause in Section 153C would limit the choice of the Assessing Officers only to a search assessment. 18. In one of the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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