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2021 (7) TMI 983 - AT - Income TaxAssessment u/s 153C - no order u/s.143(3) of the Act was passed - assessee submitted that proceedings u/s 153C of the Act can be initiated only if incriminating material is found in the case of a searched person belonging to the other person against whom proceedings u/s153C of the Act are sought to be initiated - HELD THAT:- The assessment for the relevant AY was open assessment not having been concluded pursuant to the original return of income filed by the Assessee either by an order u/s.143(3) or by non issue of notice u/s.143(2) of the Act, within the time period prescribed for issue of such notice before the date of search. In this regard, we also notice that in the present case, the assessee filed return of income on 15.10.2007 and no order under section 143(3) of the Act was passed. The search in the case of Shri. N. Krishna based on which proceedings under section 153C of the Act were initiated against the assessee took place on 26.08.2008. The time limit for issue of notice under section 143(2) of the Act for Assessment Year 2007-08 was available to the AO till 30.09.2008. Since the search was conducted on 26.08.2008 in the case of Shri. N. Krishna, the proceedings against the assessee would not be hit by the proviso to section 153A of the Act and the proceedings can be initiated and additions can be made even in the absence of any incriminating material because such proceedings will be considered as abated proceedings in which scope of making additions will be much greater. The issue with regard to validity of initiation of proceedings under section 153C of the Act has to be held in favour of the Revenue.
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