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TMI Blog2023 (3) TMI 1150X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 - Shri Chandra Mohan Garg, Judicial Member For the Assessee : Shri Salil Aggarwal, Sr Advocate, Shri Shailesh Gupta, CA For the Revenue : Shri Om Prakash, Sr DR ORDER PER CHANDRA MOHAN GARG, J.M. This appeal filed by the assessee is directed against the order dated 21.01.2015 of the Ld. CIT(A), New Delhi, relating to Assessment Year 2010-11. 2. Learned senior counsel pressing into service ground no. 2 3 of assessee submitted that in the present case the Assessing Officer initiated reassessment proceeding on the basis material found and seized during the course of search and seizure operation on 26.03.2010 in the case of Assem Kumar Gupta Group. The learned counsel further submitted that as per order of ITAT Pune Bench in the case of Vikram Munishwarlal Bajaj vs ITO in ITA No. 2552/Pun/2017 dated 29.10.2018. In such a situation the AO should have invoked provisions of section 153C of the Act and not section 147/148 of the Act, therefore initiation of reassessment proceeding and consequent order including reassessment order dated 11.03.2013 may kindly be held as null and void being bad in law. 3. Replying to the above the learned Senior DR stro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ument relating to any other person is found during the course of search on a person, then the said document is to be forwarded to the Assessing Officer in- charge of the person other than the person searched. The proceedings have to be initiated against such person on the basis of such document found and impounded. Section 153C of the Act very clearly provided that where the conditions as mentioned in the said section prevail, then provisions of said section have to be applied notwithstanding 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 sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A: Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to subsection (1) of section 153A shall be construed 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case, wherein certain documents were found during the course of search at the residence of partners of assessee firm on the basis of which, additional income was to be assessed in the hands of partnership firm i.e. one of the assessees before us, then for making aforesaid addition, recourse which was open to the Assessing Officer was to initiate proceedings under section 153C of the Act. Where the provisions of said section are to be applied, then no proceedings can be initiated under 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 ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per seized records M/s. Jasneet Kaun Chattwal obtained accommodation entry. Therefore preposition rendered by co-ordinate Bench of ITAT Delhi in the case of M/s. Mannat Hospitality (P) Ltd.(supra) does not apply to the facts of the present case in favour of the revenue as the facts are quite dissimilar and different. Therefore I am in agreement with the contention of the senior counsel of the assessee that the preposition rendered by co-ordinate Bench of Delhi is not applicable to the present case 6. Respectfully following the preposition rendered by order of ITAT Pune Bench in the case of Vikram Munishwarlal Bajaj (supra) the grounds no. 1, 2 3 of assessee are allowed and I hold that the reassessment order passed u/s. 147 r.w.s. 143(3) of the Act, dated 11.03.2013 is not valid and sustainable being null and void. 7. Since in the earlier part of this order I have quashed reassessment order by allowing legal grounds of assessee therefore other grounds of assessee on merits are not being adjudicated upon as having become academic. 8. In the result appeal of the assessee is partly allowed. Order pronounced in the open court on 23.03.2023. - - TaxTMI - TMITax - Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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