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2018 (3) TMI 1745 - AT - Income TaxReopening of assessment u/s 147 when assessment has already been taken up u/s.153C - validity of notice issued u/s. 148 - AO already issued notice u/s. 153C to the appellant prior to the date of issue of notice u/s. 148 - HELD THAT:- Section 153C provides that persons relating to whom some material is found in search of some other person should be assessed under sec. 153C. The provisions of section 153C are non-obstantive provisions and specially exclude the operation of sec. 147, therefore, the Assessing Officer in the present case has erred in invoking the provisions of sec. 147. If action u/s 147 is permitted on the basis of material found in the course of' search, then the provisions of sec. 153 would be redundant. The provisions of sec.153C were applicable which excludes the application of sections 147 and 148 of the Act and hence the notice issued under sec. 148 and proceedings under sec. 147 are void ab initio. Consequences to search at the premises of director, proceedings u/s.153C has been initiated in the hands of assessee company, the AO was not justified in not complying with the provisions of 153C and proceeding with the provisions of Section 147. Thus, assessment order framed u/s.143(3) r.w.s. 147 is without any jurisdiction. - Decided in favour of assessee.
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