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2019 (7) TMI 873 - AT - Income TaxValidity of the reassessment proceedings u/s.147/148 - name of assessee found in diary of other person searched u/s 132 - assessee contended that AO should have resorted to proceedings u/s 153C instead of reopening - impact of word belong to OR pertain to in Section 153C(1)(b) - HELD THAT:- Assessment order in the case of the assessee was passed on 16.12.2011. During that time, therefore, the word “belong” was there and as facts and situation in this case, the diary recovered during the course of search from the premises of the Chhoriya Group did not belong to the assessee and therefore, provisions of Section 153C(1)(b) is not applicable to the case of the assessee since amendment itself come into place on 01.06.2015 In assessee”s own case itself in assessment year 2008-09 [2015 (3) TMI 1278 - ITAT PUNE] , it is specifically analyzed regarding the applicability of Section 153C. Respectfully following the aforesaid decision wherein the facts and circumstances in this relevant assessment year 2003-04 are similar, we dismiss the contention of the assessee regarding applicability of Section 153C and uphold the validity of the reassessment proceedings by the Revenue Authorities u/s.147/148. Thus, ground No. 2 and 3 raised in appeal by the assessee are dismissed. Addition based on entries in diary found in search of other person - diary recovered during the course of search u/s.132 from the premises of Chhoriya - Mr. Chhoriya had also filed an affidavit stating no loans were taken from the assessee - HELD THAT:- If the income of the entries which were found in the diary during the course of search in the premises of Chhoriya group, had been declared by Mr. Chhoriya as his own income, in such circumstances, no addition should sustain in the hands of the assessee. However, if it is found that there is a contrary scenario in that case, addition has to be sustained in the hands of the assessee. This issue, therefore needs detailed factual verification. We therefore, set aside the order of the CIT(Appeals) on this issue and restore the matter to the file of the Assessing Officer for proper verification as herein above directed by us and re-adjudicate the matter in conformity with the principles of natural justice. Thus, grounds No. 5 and 7 raised in appeal by the assessee are allowed for statistical purposes.
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