TMI Blog2018 (10) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... ve proceeded u/s 153C of the Act instead of Sec.147 / 148. As find that identical issue arose in the case of V.L. Khandge and others in [2018 (4) TMI 1607 - ITAT PUNE] and others, wherein the Co-ordinate Bench of the Tribunal has held that AO after receipt of information belonging to assessee that was found during the course of search should have been initiated proceedings u/s 153C of the Act and not u/s 147/148. It was further held that in such a situation, the re-assessment proceedings passed u/s 148 of the Act does not stand - decided in favour of assessee. - ITA No.2552/PUN/2017 - - - Dated:- 29-10-2018 - SHRI ANIL CHATURVEDI, AM For The Assessee : Shri M.R. Shirude. For The Revenue : Mrs. Shabana Parveen ORDER PER ANIL CHATURVEDI, AM : 1. This appeal filed by the assessee is emanating out of the order of Commissioner of Income Tax (A) 5, Pune dt.21.07.2017 for the assessment year 2005-06. 2. The relevant facts as culled out from the material on record are as under :- 2.1 Assessee is an individual and stated to be having income from other sources. Assessee originally filed his return of income for A.Y. 2005-06 on 29.07.2005 declarin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reafter AO had recorded reasons for re-opening for the assessment and issued notice of reopening the assessment u/s 148 of the Act. Ld.A.R. submitted that the correct course of action was that the action should have been initiated u/s 153C of the Act, as the proceedings were initiated on the basis of the documents found during the course of search. He further submitted that where the provisions of Sec.153C of the Act are attracted then the proceedings have to be initiated u/s 153C of the Act as per the prescribed procedure and no proceedings should have been initiated u/s 147 / 148 of the Act and for this proposition, he relied on the decision of Pune Tribunal in the case of V.L. Khandge and others in ITA No.1971 and 2057/PUN/2014 and order dt. 24.04.2018. He also placed on record the copy of the aforesaid decision. He therefore submitted that since the proceedings u/s 147 / 148 of the Act were vitiated, the assessment framed thereunder be set aside. Ld.D.R. on the other hand, took us through the findings of the Ld.CIT(A) and supported the order of lower authorities. 5. I have heard the rival submissions and perused the material on record. The issue in the present ground is with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notwithstanding anything contained in sections 139, 147, 148, 149, 151 and 153 of the Act. The requirement of section 153C of the Act is the first satisfaction of Assessing Officer that any money, bullion, jewellery or other valuable article or thing or books of account or documents or assets belongs to a person other than the person referred in section 153A of the Act, then the books of account or documents or assets seized or requisitioned, shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person and issue notice of assessment or reassessment of the income of other person in accordance with provisions of section 153A of the Act. The Assessing Officer has to record satisfaction that books of account or assets seized or requisitioned, have a bearing on determination of the total income of such other person. The said provisions are notwithstanding anything contained in sections as mentioned above including sections 147 / 148 of the Act. In other words, where the provisions of section 153C of the Act are attracted in given set of facts and the documents impounded during the course of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. .. ( 2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- ( a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or ( b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or ( c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s can be initiated under section 147, 148, 151 and 153 of the Act. Accordingly, we hold that when during the course of search under section 132 of the Act at the residence of Mrs. Vasundhara S. Joshi and Shri Shailesh Joshi, loose paper bundle Nos.6, 7, 8 and 9 were found, which depicted the receipts and expenditure relating to different outlets being run under the partnership firms and the additional income was also offered by the persons searched on behalf of partnership firms, in which he was partner, on the basis of such documents found during the course of search, then for making addition in the hands of partners, provisions of section 153C of the Act are attracted. Once the said provisions are so attracted, then there is no question of initiating any proceedings under section 147 / 148 of the Act. Accordingly, we hold that proceedings initiated under section 147 / 148 of the Act are thus, not correctly initiated. 9. The issue raised in the present appeal is squarely covered by the issue before the Tribunal in Joshi Wadewale Hadapsar Vs. DCIT (supra) and following the same parity of reasoning, we hold that re-assessment proceedings initiated against the assessee under se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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