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2023 (6) TMI 79 - AT - Income TaxAssessment u/s 153C - validity of the notice issued u/s. 153C of the Act and completion of assessment u/s 143(3) r.w.s 153C - scope of curable defect u/s. 292BB - HELD THAT:- Search operation u/s.132 was conducted in the premises of M/s. Apex Frozen Foods Limited and subsequently in the premises of the assessee. AO has issued a notice u/s.153C wherein it was stated that the AO has required the assessee to prepare the true and correct return of the total income in pursuance of the provisions of section 153C r.w.s 153A of the Act for the impugned assessment year. As per the provisions of the Act, consequent to the search, as per the requirement of law, in case the premises of the persons have been searched, then the proceedings to be initiated are by way of issue of notice u/s. 153A of the Act. In the instant case, the documents were seized from the residential premises of the assessee and therefore the Ld. AO ought to have issued notice u/s.153A instead of notice u/s.153C - we find from the written submissions made by the AR regarding the satisfaction note recorded by the AO wherein the AO proposed to issue notice u/s. 153C - the initiation of proceedings u/s.153C in the case of the assessee who is the person searched is not valid. It is not out of place to mention that any defects in notices u/s. 153A / 153C of the Act, whereby the Assessing Officer assumes jurisdiction, are not curable U/s. 292BB of the Act even though the assessee participated in the assessment proceedings without objection. Therefore, it can be safely concluded that in the instant case, since the issue of notice U/s. 153C is invalid and consequently, the assessment order passed U/s. 143(3) r.w.s 153C is bad in law and void ab initio. Assessee appeal allowed. Salary income - Perquisites - Addition u/s. 17(2)(v) towards insurance premium paid by the employer - whether premium paid by the employer on the policy taken on the life of the employee / assessee is a taxable perquisite as defined u/s. 17(2)(v) of the Act or not? - HELD THAT:- Admittedly, the policy is taken by the employer in the name of the employee and cannot be assigned in the name of the employer in a future date. The insurance policy is taken by the employer to protect the interests of the employees even though no immediate benefit is accrued to the employees. From the plain reading of the section 17(2)(v) of the Act, we find that any policy to effect an assurance on the life of the assessee shall be treated as a ‘perquisite’ as defined in the Act. Therefore, the argument of the Ld. AR has no merits. We are therefore inclined to uphold the order of the Ld. CIT(A) and dismiss this appeal of the assessee.
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