TMI Blog2019 (6) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant : Shri Sunil Ganoo For the Respondent : Shri M. K. Verma ORDER PER D. KARUNAKARA RAO, AM : This appeal is filed by the assessee against the order of CIT(A)-6, Pune dated 05.03.2018 for the Assessment Year 2014-15. 2. The grounds raised by the assessee are as under :- 1. In the facts and circumstances of the case and in law, the learned C.I.T.[A] 6 has erred in confirming the additions of ₹ 15,00,000/- u/s 143(3) r.w.s. 147 of the I.T. Act, 1961. 2. The aforesaid addition being devoid of merits, arbitrary and perverse the same may please be deleted. 3. The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of appeal, if deemed necessary at the time of hearing of the appeal. 3. The assessee has also raised the additional grounds and the same are extracted hereunder :- Proposed Additional Ground of appeal No.1 sought to be raised In the facts and circumstances of the case and in law, since the learned Assessing Officer has failed to issue the notice u/s 153C of the I.T. Act 1961 and has fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Aggrieved with the above decision of the CIT(A), the assessee is in appeal before the Tribunal with above extracted grounds/additional grounds. 7. Before me, at the outset, ld. Counsel for the assessee brought my attention to the above extracted additional ground no.1 and submitted that this a case of issuing notice u/s 153C of the Act as the information relating to the assessee was found from the documents seized belonging to Sinhagad Technical Education Society (STES). Further, bringing my attention to the amended provisions of section 153C by the Finance Act, 2015 w.r.e.f. 01.06.2003 (A.Y. 2004-05), ld. Counsel submitted that the amended provisions are in existence at the time of issue of notice u/s 148 of the Act dated 21.04.2016 whereby the law makers have widen scope of provisions of section 153C of the Act for taxing such income of ₹ 15 lakhs in this case. The ld. Counsel submitted that this is a clear case of information pertaining to the assessee emanating from the documents belonging to Sinhagad Technical Education Society (STES). Both these expressions fall in the scope of the amended section 153C of the Act. Therefore, the Assessing Officer err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was found that Shri Vasant Laxman Khandge i.e. assessee before us, father of Shri Ganesh Khandge, along with his brother Shri Dattatreya Laxman Khandge had sold land situated at Talegaon to Namrata Developers. The transaction related to assessment year 2006-07. The Assessing Officer while recording reasons for reopening the assessment mentioned that the assessee had declared income from long term capital gains on the sale of said land in the return of income. Secondly, from the evidences seized / impounded, it was observed that the assessee and his brother had entered into Joint Venture Agreement with Namrata Developers to evade tax on sale of land, since on the said land Namrata Developers developed 80IB(10) project and claimed deduction on the entire project. Thereafter, the Assessing Officer has raised various issues in respect of suppression and short computation of long term capital gains by increasing cost of acquisition and / or suppression the sale consideration. Reference is also made to the statement of Shri Ganesh Khandge, the person searched, which was recorded under section 131 of the Act on 12.02.2013. The Assessing Officer thus, held that there was reason to belie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 153C of the Act are attracted in given set of facts and the documents impounded during the course of search, then the proceedings have to be initiated under section 153C of the Act as per prescribed procedure and no proceedings can be initiated under section 147 / 148 of the Act. The said proposition has been held by the Pune Bench of Tribunal in the case of Joshi Wadewale Hadapsar Vs. DCIT in ITA Nos.105 106/PUN/2016, relating to assessment years 2009-10 2010-11 with lead order in the case of Mrs. Vasundhara Shailesh Joshi Vs. DCIT in ITA Nos.95 96/PUN/2016, relating to assessment years 2009-10 2010-11, vide consolidated order dated 27.03.2018. The relevant findings of the Tribunal are as under:- 28. The first issue which arises is whether the assessment in such circumstances was to be made under section 153C or 148 of the Act and connected issue is whether such an issue of assessment being completed under a particular section was valid or not, can be raised while deciding the issue of levy of penalty under section 271(1)(c) of the Act against the income assessed in the hands of assessee. In this regard, the learned Authorized Representative for the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een made, before 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, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. 29. Section 153C of the Act very clearly lays down that notwithstanding anything contained in sections 139, 147, 148, 149, 151 and 153 of the Act, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing seized or requisitioned, belongs to; or any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, such 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 the Assessing Officer shall proceed against such other person and issue notice and assess or reassess the income of other person in accordance with provisions of section 153A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Vs. DCIT (supra) and following the same parity of reasoning, we hold that re-assessment proceedings initiated against the assessee under section 147 / 148 of the Act are not warranted. The Assessing Officer after receipt of information belonging to the assessee should have invoked provisions of section 153C of the Act and not section 147 / 148 of the Act. Accordingly, we hold so. Consequently, re-assessment order passed under section 148 of the Act does not stand. The Assessing Officer is thus, directed to cancel the same. Consequently, the additional ground of appeal raised by the assessee is allowed and we hold that assessment framed by the Assessing Officer is null and void. Consequently, the issue raised on merits by the assessee and the Revenue becomes academic in nature and the same are dismissed. 10. The facts and issues in ITA Nos.1972/PUN/2014 2056/PUN/2014 are identical to the facts and issues in ITA Nos.1971/PUN/2014 2057/PUN/2014 and our decision in ITA Nos.1971/PUN/2014 2057/PUN/2014 shall apply mutatis mutandis to ITA Nos.1972/PUN/2014 2056/PUN/2014. 11. In the result, appeals of assessee are allowed and appeals of Revenue are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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