TMI Blog2017 (8) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... ch excludes the application of sec. 147 of the hence, notice issued under sec. 148 of the Act and assessment framed in furtherance thereto under sec. 147 read with section 143(3) of the Act are void ab initio. Hence, the reassessment in question is accordingly quashed. - Decided in favour of assessee. - I.T.A. No. 1500/DEL/2017 And I.T.A. No. 1501/DEL/2017 - - - Dated:- 8-8-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee Sh. Rajesh Jain, CA Ms. Chandrima Chaudhury, Adv. For The Department : Sh. T. Vasanthan, Sr. DR ORDER These are the appeals filed by the separate assesses against the respective order of the Ld. CIT(A), Ghaziabad both dated 23.12.2016 and pertains to assessment year 2007-08. Since the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollege. 6. That the Ld. CIT (A) has erred on facts and in law in upholding the addition of ₹ 25,50,000/- on account of alleged payment to M/s. Santosh Medical College. 7. That the Ld. CIT (A) has erred in holding that merely because the appellant has attended the assessment proceedings it can be presumed that the information on the basis of which the addition has been made was confronted to the appellant. 8. That the Ld. CIT (A) has erred in not appreciating that the assessment is invalid and illegal as the principles of natural justice have been completely violated and no opportunity of cross examination was provided to the appellant. 9. That the impugned appellate order is arbitrary, illegal, bad in law and in violation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s erred on facts and in law in upholding the addition of ₹ 25,50,000/- on account of alleged payment to M/s. Santosh Medical College. 7. That the Ld. CIT (A) has erred in holding that merely because the appellant has attended the assessment proceedings it can be presumed that the information on the basis of which the addition has been made was confronted to the appellant. 8. That the Ld. CIT (A) has erred in not appreciating that the assessment is invalid and illegal as the principles of natural justice have been completely violated and no opportunity of cross examination was provided to the appellant. 9. That the impugned appellate order is arbitrary, illegal, bad in law and in violation of rudimentary principles of contempo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT, New Delhi in the case of Rajat Shubra Chatterji vs. ACIT, New Delhi ITA No. 2430/Del/2015 dated 20.5.2016. He contended that the action taken by the Assessing Officer under sec. 147 is not tenable for the simple reason that provisions of sec. 153 C of the Act are applicable in this case and not the provisions laid down under sec. 147 of the Act. He further submitted that it is an admitted position of the fact as it is also evident from the assessment order that the Assessing Officer has initiated reassessment proceedings in the present case on the basis of information received based on the material found during the course of search from the premises of Santosh Medical College run by Maharaja Education Trust. The Learned AR contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting material found in search of third party and the validity of the same was challenged by the assessee before the Learned CIT(Appeals) and the Learned CIT(Appeals) vitiated the proceedings. The same was questioned by the Revenue before the ITAT and the ITAT after discussing the cases of the parties and the relevant provisions in details has come to the conclusion that in the above situation, provisions of sec. 153C were applicable which excludes the application of sections 147 and 148 of the Act. The ITAT held the notice issued under sec. 148 and proceedings under sec. 147 as illegal and void ab initio. It was held that Assessing Officer having not followed procedure under sec. 153C, reassessment order was rightly quashed by the Learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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