Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 223 - HC - Income TaxAssessment u/s 153A - Held that:- In the present case, we have no hesitation in accepting the petitioner's contention that in order to issue notice under sub-section (1) of section 153A, there must be initiation of search in case of the noticee. Mere search authorization would not be sufficient. There is clear distinction between search authorization and conduct of the search. In sub-section (1) of Section 153A of the Act, therefore, the legislature has advisably used expression “where a search is initiated under Section 132”. Admittedly search authorization was issued against the firm as well as other persons. Actual search was also conducted and carried out at 3 different locations, which included the residential premises of one of the partners of the firm and residential premises of two more persons. Primafacie, we do not find any provision which would restrict the Department's search action only to the registered office of a partnership firm. The conduct of the search at these places in relation to the partnership firm and its business need to be examined in proper perspective keeping in mind the objections of the partnership firm and such exercise should be allowed to be done at the level of the Assessing Officer. At this stage, we do not propose to thwart the assessment pursuant to the impugned notices. Firstly, at this stage, in a writ petition we would not go into the minute factual details when said factual aspects can be and should be considered by the Assessing Officer before whom the proceedings are pending. In this context, we may refer to the judgment of the Supreme Court in the case of Commissioner of Income Tax Vs. Vijaybhai N. Chandrani [2013 (7) TMI 740 - SUPREME COURT]. It is the case, in which the assessee had approached Gujarat High Court challenging show cause notice under Section 153C of the Act contending that during the search conducted by the Department against another person, no material belonging to the assessee was found and, therefore, action against the assessee under Section 153C of the Act was invalid. Under the circumstances, keeping the petitioner's factual and legal contentions and objections open, we relegate the petitioner before the Assessing Officer. Once the Assessing Officer passes final order pursuant to the impugned notices, it will always be open to the petitioner to pursue the remedy available under the Act.
|