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TMI Blog2024 (8) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [ 2023 (4) TMI 1056 - SUPREME COURT] as held the argument that Section 153C can be invoked in case there is incriminating material for all the relevant preceding years and otherwise Section 148 is to be resorted to, is misplaced. On satisfaction of the twin condition for proceedings under Section 153C, the AO has to proceed in accordance with Section 153A. Notice is to be issued for filing of the returns for relevant preceding years and thereupon proceed to assessee or re-assessee the 'total income'. It is not obligatory on the AO to make assessment for all the years, the earlier orders passed may be accepted. But once there is incriminating material seized or requisitioned belonging or relatable to the person other than on whom search was conducted, Section 153C is to be resorted to. The findings of this Bench in the case of M/s Mah Impex Pvt. Ltd [ 2024 (1) TMI 411 - ITAT DELHI] which also involved the case of search conducted in Surendra Kumar Jain Group squarely applies to the case of the assessee before us. Assessee appeal allowed. - Sh. M. Balaganesh, Accountant Member And Shri Anubhav Sharma, Judicial Member For the Assessee : Sh. Ved Jain, Adv and Ms. Supriya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STRUCTIONS SHESHAPPA COMPOUND VERSUS DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE MANGALORE, 2022 (7) TMI 800- KARNATAKA HIGH COURT, Dated.- July 8, 2022. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE VERSUS SRI DINAKARA SUVARNA, 2023 (6) TMI 1175-SC ORDER, Dated.- March 27, 2023. M/S. ADITI CONSTRUCTIONS VERSUS DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1 (3) MUMBAI ASST. COMMISSIONER OF INCOME TAX 24 (1), MUMBAI, UNION OF INDIA, 2023 (5) TMI 281-BOMBAY HIGH COURT, Dated.- May 4, 2023. KARTI P. CHIDAMBARAM VERSUS THE PRINCIPAL DIRECTOR OF INCOME TAX (INVESTIGATION) INCOME TAX INVESTIGATION WING BUILDING, THE DEPUTY DIRECTOR OF INCOME TAX, (INVESTIGATION) UNIT 3 (2), CHENNAI, THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, 2 (1), CHENNAI, 2021 (7) TMI 393-MADRAS HIGH COURT, Dated.- July 5, 2021. M/S RAVI NIRMAN NIGAM LIMITED VERSUS DCIT-CIRCLE-13 (3) (1) MUMBAI, 2022 (6) TMI 256-ITAT MUMBAI, Dated.- April 27, 2022. ACIT CIRCLE-45 (1) NEW DELHI. VERSUS M/S. K.S. CHAWLA SONS [HUF] AND (VICE- VERSA), 2021 (5) TMI 586-ITAT DELHI, Dated.- May 18, 2021. INCOME-TAX OFFICER VERSUS ARUN KUMAR KAPOOR, 2012 (6) TMI 403-ITAT AMRITSAR, Dated.- June 21, 2011. SHRI SANJAY SIN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced and interest earned thereon were unaccounted. In other words the basis for initiation of Section 148 proceedings is the material seized relating to or belonging to the petitioner, during the search conducted of Manihar Group. 24. In the case where search or requisition is made, the AO under Section 153A mandatorily is required to issue notices to the assessee for filing of income tax return for the relevant preceding years. The AO assumes jurisdiction to assess/reassess 'total income' by passing separate order for each assessment. 25. In cases of the person other than on whom search was conducted but material belonging or relating such person was seized or requisition, the AO has to proceed under Section 153C. The two pre-requisites are that the AO dealing with the assessee on whom search was conducted or requisition made, being satisfied that seized material belongs or relates to other assessee shall hand over it to AO having jurisdiction of such assessee. Thereafter, the satisfaction of AO receiving the seized material that the material handed over has a bearing for determination of total income of such other person for the relevant preceding years. On fulfillment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere no incriminating material is seized during the search or requisition. 31. The other aspect of the matter is that under Section 153A and 153C, 'the total income' is to be assessed. The total income includes returned income (if any), undisclosed income unearthed during the search or requisitioning and information possessed from the other sources. For Illustration:- An assessee had returned income of Rs. 100, undisclosed income of Rs. 200 is unearthed during search and there is information from annual information statement of non-disclosure of income of Rs. 150/-. The AO under Section 153A and 153C shall pass order dealing with income of Rs. 100+Rs. 200+Rs. 150, the total income being Rs. 450/-. In cases where there is no unearthing of undisclosed income of Rs. 200/-, the department can resort to proceeding under Section 147/148. 32. The argument that Section 153C can be invoked in case there is incriminating material for all the relevant preceding years and otherwise Section 148 is to be resorted to, is misplaced. On satisfaction of the twin condition for proceedings under Section 153C, the AO has to proceed in accordance with Section 153A. Notice is to be issued for fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant to quote Para-10:- 10. Admittedly no proceedings were initiated under Section 153C of the Act. Thus, there is patent non-application of mind. It is relevant to note that the author of the diary Smt. Soumya Shetty had passed away prior to the date of search. It was argued on behalf of the Revenue that Shri. Ashok Kumar Chowta had offered tax on lumpsum income. 39. Further reliance was placed upon the decision of the Bombay High Court in the case of M/s. Aditi Constructions (supra). The para-9 is quoted:- 9. We find that the jurisdictional conditions for invoking section 147 - 148 are not satisfied as there is no failure to disclose material facts fully and truly. It is not in dispute that by the letter dated 11th September 2015 (Exhibit H) the Petitioner have submitted all the particulars along with supporting documents to the Respondent No.1. Hence the reasons to believe and a presumption based on the statement of Shri Bhanwarlal Jain (a third party) in the course of a search, that the loans of the entities were bogus or accommodation entries was clearly dispelled. Moreover, the specific provisions of S. 153C would prevail over the general provisions of section 147 in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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