Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 1463 - ITAT BANGALOREReopening of assessment u/s 147 v/s assessment u/s 153C - adverse material belonging to the assessee found in course of search of third person - HELD THAT:- As per AO it was held in M/s. Pepsico India Holdings (P) Ltd [2014 (8) TMI 898 - DELHI HIGH COURT] that if a sale deed is found in course of search, it has to be accepted that this sale deed is belonging to the buyer and not the vendor although the names of both are mentioned in the sale deed. On the basis of this judgment of Hon’ble Delhi High Court, this is the submission of the AO in the remand report that the documents seized in the present case i.e. the receipt regarding cash payment by the assessee available is not belonging to the assessee. In my considered opinion, this observation of the AO is not correct because if the sale deed is belonging to the buyer, then the receipt issued by any receiver is belonging to the payer and not to the receiver and hence, in the facts of present case, the seized material is belonging to the present assessee. As relying on case of Shri Srinivas Rao Hoskote [2018 (2) TMI 1830 - ITAT BANGALORE] reopening by the AO in the present case u/s. 147 of the IT Act is arbitrary and not as per law and the proceedings should have been initiated u/s. 153C of the IT Act as it were based on the material found during the search from the premises of the searched person other than the assessee and under these facts, the reopening u/s. 147 is not valid. This ground is allowed.
|