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2019 (2) TMI 1828 - AT - Income TaxReopening of assessment u/s 147 or assessment u/s 153A - Validity of Reassessment on the basis of incriminating material found in search of third party - Provisions of s. 153C applicability which exclude the application of section147 and 148 - HELD THAT:- In the instant case, undisputedly, originally assessment proceedings were initiated against the present assessee u/s 153C read with section 153A of the Act which was completed vide order dated 30.12.2011 but the same were annulled by ld. CIT (A) vide order dated 28.08.2012 on the ground that proper course in this case was to initiate proceedings u/s 147 of the Act and make assessment accordingly. The said assessment u/s 153C read with section 153A was completed on the basis of some seized material/document LP-103 A-1 pages 30, which is a memorandum of understanding alleged to have been entered into between the assessees and M/s. R.B. Enterprises. When provisions contained u/s 153C are applicable in this case to initiate assessment proceedings on the basis of seized material seized in case of some third party, notice issued u/s 148 of the Act and subsequent assessment framed u/s 147 of the Act is void ab initio and as such, assessment framed u/s 147/143(3) of the Act is liable to be quashed. Following the mandate of section 153C and orders passed by the coordinate Bench of the Tribunal in cases of Rajat Shubra Chatterji vs. ACIT [2016 (7) TMI 258 - ITAT DELHI] and ITO vs. Arun Kumar Kapoor [2012 (6) TMI 403 - ITAT AMRITSAR], assessment framed in this case u/s 147/143 (3) of the Act on the basis of incriminating material unearthed in case of a third party is not sustainable, hence ordered to be quashed without entering into the merits of the case. - Decided in favour of assessee.
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