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2015 (10) TMI 1018 - HC - Income TaxProceedings under Section 153C - Jurisdiction of assessing officer to initiate the proceedings under Section 147 read with Section 148 on the basis of the same material that was discovered during the search operation - whether in case of a valid search under Section 132 the assessment, if any, was only permissible under Section 153A or under Section 153C and that no assessment or reassessment was permissible under Section 147 read with Section 148? - Held that:- There were two sets of incriminating documents seized against the appellant. One set of documents, so seized, were found at the appellant's premises and the other set of documents was found at the premises of Anurag Pandey. The materials found at the premises of Anurag Pandey were used to initiate proceedings under Section 153C of the Act, but, were subsequently dropped. These materials have not been used for initiating proceeding under Section 147 of the Act. The materials so used under Section 147 of the Act are the materials which were found at the assessee premises, pursuant to which proceeding under Section 153A of the Act was initiated, but was subsequently dropped on account of the fact that the warrant of authorisation was issued against a wrong person. The materials, so seized, at the appellant premises could be utilised for the purpose of assessment. In Dr.Sarad B. Sahai and another vs. Commissioner of Income Tax and others [2010 (9) TMI 383 - ALLAHABAD HIGH COURT] held it is a settled principle of law that even if a search is declared illegal the material found at the time of search can be utilized for the purposes of assessment. Therefore, the co-ordinated post-search investigation and meaningful assessment has to take place. It may be that on account of search being declared illegal, the block assessment under s. 158BC of the Act cannot be made but the regular assessment or the reassessment contemplated under the Act can be made In the light of the aforesaid, the contention that once proceeding under Section 153C of the Act was dropped, proceeding under Section 147 could not be initiated, is patently erroneous. We find that proceeding under Section 153C was initiated on different set of documents and on separate satisfactory note recorded whereas the proceedings which were initiated against the assessee-appellant under Section 147 of the Act was based on different set of documents.
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