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2021 (9) TMI 6 - AT - Income TaxReopening of assessment u/s 147 or assessment u/s 153C - assessment initiated on the basis of third party incriminating material u/s 147/148 - meaning of word "belongs to" - transaction of sweat equity shares allotted to the assessee at NIL consideration recorded in the books and observed during the post search investigation - HELD THAT:- Undisputedly, 3,50,000 sweat equity shares of ₹ 10 each with premium of ₹ 190 per share were issued to the assessee by M/s. Rockland Hospital Ltd. in accordance with the agreement dated 28.01.2008 - during search operation conducted u/s 132 of the Act in M/s. Rockland Hospital Ltd. group of cases, no incriminating material was seized rather AO initiated the reopening on the basis of information and copy of sweat equity share agreement dated 28.01.2008 - assessee is neither an employee nor a Director of M/s. Rockland Hospital Ltd. and his wife is only a housewife - as per sweat equity share agreement, there is a lock-in period of three years and these shares would vest in the assessee only after lock-in period. It is also not in dispute that in case of Rajat Shubra Chatterjee who was also allottee of 1000 shares of ₹ 10 each at the premium of ₹ 190 each by M/s. Rockland Hospital Ltd., the coordinate Bench of the Tribunal in RAJAT SHUBRA CHATTERJI [2016 (7) TMI 258 - ITAT DELHI] quashed the reassessment initiated on the basis of incriminating material found during search in the case of third party, namely, M/s. Rockland Hospital Ltd. in which provisions contained u/s 153C were applicable and not the provisions contained under section 147/148. When undisputedly the reopening has been initiated u/s 147/148 of the Act on the basis of same third party document belonging to M/s. Rockland Hospital Ltd., the same is void ab initio because in any case the reopening was to be initiated it could have been initiated u/s 153C of the Act. Ld. CIT (A) has rightly quashed the assessment - Decided in favour of assessee.
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