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TMI Blog2023 (5) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... n send the material and information to the Assessing Officer of present assessee and he invoked action u/s. 147/148 of the Act. These facts are also clearly emerged from the copy of the reasons available that the Assessing Officer of assessee took action under u/s. 147/148 of the Act on the basis of information received from DDIT (Inv) Delhi based on the search and seizure operation in the case of Shri Surender Kumar Jain Group. It is pertinent to take cognizance of order of Saurashtra Color Tones Pvt. Ltd. [ 2020 (4) TMI 289 - ITAT DELHI] wherein the co-ordinate bench adjudicating the identical legal issue held no justification for the A.O. to have been initiated proceedings us. 147 / 148 - The correct course of action would have been to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raise additional legal ground which reads as under: That under the facts and circumstances, the proceedings initiated u/s. 147/148 of I.T. Act are unwarranted and without jurisdiction against, at the most, correctly only u/s. 153C of the I.T. Act. 5. On careful consideration of above I note that the said legal ground was not raised before the authorities below and first time being raised before this Tribunal. However, I am in agreement with the contention of the ld. AR that the said additional ground is a legal ground which goes to the root of the matter and can be adjudicated on the basis of material available on record. Therefore respectfully following the proposition rendered by Hon ble Supreme Court in the case of NTPC Ltd. (supra) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings are liable to be quashed CASE LAWS Saurashtra Color Tones Pvt. Ltd. Vs. ITO ITA No. 6276 / Del / 2018 Dtd. 22.01.20. The above decision is for A. Y. 11-12 as is of assessee. Under the similar facts, in Para-8.3, it has been held as under:- Therefore, there was no justification for the A.O. to have been initiated proceedings us. 147 / 148 of the I.T. Act. The correct course of action would have been to proceed against the assessee under section 153C of the I. T. Act. Therefore initiation of reassessment proceedings w/s. 147 / 148 of the I.T. Act is wholly invalid, void and bad in law Shri Adarsh Aggarwal Vs. ITO ITA No. 777/Del/2019 Dtd. 14.01.2020 Similarly has been held as in case of Saurashtra Color Tones Pvt. Ltd. Vs. ITO (Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f an Assessing Officer u/s. 153C arises only upon a specific intimation/information received from the Assessing Officer of that person requesting specific action u/s. 153C of the Act. As such, a specific request from that the Assessing Officer has not been received in this case. Once that exercise of satisfaction hand over visualized u/s. 153C of the Act, is not carried out, jurisdiction of an Assessing Officer to take action u/s. 153C does not arise. 8. On careful consideration of above submissions, first of all, I note that undisputedly proceedings u/s. 147/148 of the Act have been initiated on the basis of information and material collected in the search on Jain Brothers i.e. third party u/s. 132 of the Act and the reassessment on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er decisions/orders of co-ordinate bench of Tribunal. On the other hand I find that the various co-ordinate benches of Tribunal are taking consistent view that the only recourse available to the assessee in a situation of receiving information and material found during the course of search of third person is taking action u/s. 153C of the Act. 11. Respectfully following the order of co-ordinate bench of Tribunal (supra), I hold that in the present case also there was no valid justification for the Assessing Officer to take action u/s. 147/148 of the Act on the basis of information and material found and seized during the course of search operation on third party i.e. Surender Kumar Jain Group. The correct course of action would have been to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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