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2018 (10) TMI 1599 - AT - Income TaxReopening of assessment - addition on account of alleged on money against purchase of flat - addition on document found during search and seizure action u/s 132 in the case of “Marvel Group” wherein one of the partner had admitted to have collected ‘on money’ from various flat purchasers - whether course of search should have been initiated proceedings u/s 153C of the Act and not u/s 147/148 - Held that:- It is an undisputed fact that the case of assessee was re-opened on the basis of a document found during search and seizure action u/s 132 in the case of “Marvel Group” wherein one of the partner had admitted to have collected "on money" from various flat purchasers. As per those details, it was noted that assessee had also paid “on money” of ₹ 6,65,000/-. Thus, it is seen that the re-opening was on the basis of search carried out at Marvel Group, wherein the documents pertaining to the assessee was found. AO had initiated re-assessment proceedings and had framed the assessment u/s 143(3) r.w.s. 147 of the Act. It is assessee’s contention that AO should have proceeded u/s 153C of the Act instead of Sec.147 / 148. As find that identical issue arose in the case of V.L. Khandge and others in [2018 (4) TMI 1607 - ITAT PUNE] and others, wherein the Co-ordinate Bench of the Tribunal has held that AO after receipt of information belonging to assessee that was found during the course of search should have been initiated proceedings u/s 153C of the Act and not u/s 147/148. It was further held that in such a situation, the re-assessment proceedings passed u/s 148 of the Act does not stand - decided in favour of assessee.
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