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TMI Blog2018 (3) TMI 1745X X X X Extracts X X X X X X X X Extracts X X X X ..... all fully all material facts necessary for assessment; d) The AO had not passed any order disposing off the objections raised by the appellant against the reasons recorded for reopening of assessment; e) There was no tangible material on record on the basis of which the AO could have reason to believe that income chargeable to tax had escaped assessment 2. On the facts and circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in treating the proceeds received on transfer of shares of Transmission Securities Ltd. of Rs. 29,92,480/- as unexplained money in possession of the appellant. 3. On the facts and circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in assessing Rs. 1,49,624/- u/s. 69C of the Act. 3. Rival contentions have been heard and record perused. 4. Legal grievance of assessee relates to assuming jurisdiction u/s.147 and framing assessment u/s.143(3) r.w.S. 147, when the case falls under the purview of Section 153C for which notice was also issued by AO. 5. From the record, I found that for the A.Y.2004-05 the return of income was filed u/s.143(1) dated 30/04/2007. There was a Search ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Visakhapatnam Bench in the case of G. Koteswara Rao vs. DCIT (2015) 64 taxmann.com 159 wherein it was held that having Initiated the proceeding u/s 158BC, there was no justification to issue the notice u/s 147 as they would undoubtedly result in parallel proceedings. 10. It was also argued by learned A.R Shri Shashank that for the purpose of computing the time limit for completion of the Assessment u/s 153C r.w.s 153B is the period either 21 months from the end of the financial year in which the authorization for Search u/s 132 is given or 9 months from end of financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later. 11. On the other hand, learned DR relied on the decision of G.R.Pandya Share Broking Ltd., ITA No.537/Mum/2014 dated 12/08/2016. 12. I have considered rival contentions and carefully gone through the orders of the authorities below and I have also deliberated on the judicial pronouncements referred by lower authorities in their respective orders as well as cited by learned AR and DR during the course of hearing bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sec. 153C, reassessment order was rightly quashed by the Learned CIT(Appeals). In the present case before us, it is an admitted fact, as also evident from the reasons recorded and the assessment order that the initiation of reopening proceedings was made by the Assessing Officer on the basis of information received from the Directorate of Income-tax (Inv.) on the basis of search & seizure operation conducted at the premises of Rock Land Group of Cases and the documents related to the assessee found during the course of search were made available to the Assessing Officer of the present assessee. We thus respectfully following the decision of Co-ordinate Bench of the ITAT in the case of ACIT vs. Arun Kapur - 140 TTJ 249 (Amritsar) hold that provisions of sec. 153C of the Act were applicable in the present case for framing the assessment, if any, which excludes the application of sec. 147 of the Act, 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. The reassessment in question is accordingly quashed. The ground No.1 is accordingly allowed." 13. Similarly, ITAT Amri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07] 289 ITR 341 / 159 Taxman 258 wherein it has been held that if the procedure laid down in section 158BD is not followed, block assessment proceedings would be illegal. The Commissioner (Appeals) has correctly observed that the provisions of section 153C are exactly similar to the provisions of section 158BD in block assessment proceedings. Thus, considering the entire facts and the circumstances of the case, the Commissioner (Appeals) was fully justified in quashing the reassessment order. 14. ITAT Visakhapatnam Bench in case of G.Koteswara Rao (supra) held as under:- * The question came up for consideration is (i) whether the Assessing Officer is right in reopening the assessment under section 147, where the Assessing Officer is satisfied that any money, bullion, 'jewellery or valuable article or thing or books of account or documents seized or requisitioned belongs to a person other than the person referred to in section 153A. The Act, by sections 153A, 153B and 153C provides for new scheme of assessment of cases, where the search is taken place on or after 31-5-2003. Until, insertion of sections I53A to 153C, the search assessment was governed by separate provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 of the Act. If action under sec. 147 is permitted on the basis of material found in the course of' search, then the provisions of sec. 153 would be redundant. The provisions of sec.153C were applicable which excludes the application of sections 147 and 148 of the Act and hence the notice issued under sec. 148 and proceedings under sec. 147 are void ab initio. 16. Applying the proposition of law laid down in the above judicial pronouncements to the facts of the instant case, wherein consequences to search at the premises of director, proceedings u/s.153C has been initiated in the hands of assessee company, the AO was not justified in not complying with the provisions of 153C and proceeding with the provisions of Section 147. Thus, assessment order framed u/s.143(3) r.w.s. 147 is without any jurisdiction. Respectfully following the above judicial pronouncements, I set aside the order passed by the AO. 17. In the result, the appeal of the assessee is allowed. 18. Similar is the position with respect to the A.Y.2003-04. Once the proceedings are initiated u/s.153C, details were furnished, re-assessment proceedings u/s.147 cannot be initiated. 19. Following the reasoning give ..... X X X X Extracts X X X X X X X X Extracts X X X X
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