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TMI Blog2019 (6) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 failed to frame the impugned assessment order u/s 143 r.w.s. 153C r.w.s.143[3] of the I.T. Act 1961, the impugned assessment order framed by the learned Assessing Officer u/s 143[3] r.w.s.147 of the I.T. Act 1961 is bad in law, without jurisdiction and patently illegal and hence the same may please be annulled. Proposed Additional Ground of appeal No.2 sought to be raised In the facts and circumstances of the case and in law the learned C.I.T. [A] has erred in confirming the addition of Rs. 15,00,000.00 made by the learned Assessing Officer u/s 69A of the I.T. Act 1961, on the ground of unexplained money. The impugned addition being made on surmises, conjunctures and presumptions and without any cogent evidence, the same is bad in law, arbitrary, perverse and devoid of merits and in any case the same cannot be sustained u/s 69A of the I.T. Act 1961 and hence the same may please be deleted." 4. Considering the legal nature of the additional grounds raised by the assessee, we find it appropriate to admit the same for adjudication. 5. Briefly stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d section 153C of the Act. Therefore, the Assessing Officer erroneously assumed jurisdiction u/s 147 of the Act with reference to the provisions of section 153C of the Act. Consequently, the order made by the Assessing Officer u/s 147 r.w.s. 143(3) of the Act is unsustainable in law. For this proposition, ld. Counsel relied on the various decisions including the decision of the Pune Bench of the Tribunal in the case of Shri V. L. Khandge vs. ITO in ITA No.1971/PUN/2014 for the assessment year 2006-07 dated 24.04.2018 and submitted that this appeal also pertains to the period post-assessment year 2004-05 and the provisions of section 153C of the Act are applicable to the said case. On these facts, the Tribunal did not approve the Assessing Officer action in resorting to section 147 of the Act in reference to the provisions of section 153C of the Act. He also mentioned that the contents of para 7 to 11 of the said order of the Tribunal (supra) are relevant in this regard. 8. The ld. DR for the Revenue, on the other hand, relied heavily on the orders of the Assessing Officer and the CIT(A). 9. On hearing both the sides on this issue, I find the contents of para 7 to 11 of the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer thus, held that there was reason to believe that income chargeable to tax had escaped assessment and notice under section 148 of the Act was issued to the assessee. The assessee in reply, submitted that return of income earlier filed may be treated as filed under section 148 of the Act and raised objections to the notice issued under section 148 of the Act. 8. The issue which arises before us is whether in such facts and circumstances of the case, where the basis of making investigation and assessment thereafter in the hands of assessee is on the basis of information unearthed during the course of search action on the premises of Shri Ganesh Khandge on 12.02.2013, then whether proceedings are to be initiated under section 148 or under section 153C of the Act. The perusal of provisions of section 153C of the Act reflects that in case any document relating to any other person is found during the course of search on a person, then the said document is to be forwarded to the Assessing Officer in-charge of the person other than the person searched. The proceedings have to be initiated against such person on the basis of such document found and impounded. Section 153C of the Act v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative for the assessee has pointed out that the issue stands covered by the ratio laid down in ITO Vs. Shri Shailendra B. Agrawal (supra) and in bunch of appeals with lead order in ACIT Vs. Shamsundar Laxman Jagtap (supra). The relevant provisions of the Act to which reference is being made is section 153C of the Act which provides as under:- "153C. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, 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 each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A: Provided that in case of such other person, the reference to the date of initiation of the sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early lays down the procedure to be followed when during the course of search on a person any money, bullion, jewellery or valuable article or thing, or any books of account or documents or any information contained therein pertains to or relate / relates to other than the person searched; then first, all the said assets or information is to be handed over to the Assessing Officer, who is incharge of the person other than the person searched and then the Assessing Officer has to proceed and determine the income of the other person in accordance with provisions of section 153C of the Act. The said section very clearly also lays down that the provisions of section 153C of the Act are to be applied notwithstanding anything contained in sections 139, 147, 148, 151 and 153 of the Act. Applying the said provisions to the facts of the present case, wherein certain documents were found during the course of search at the residence of partners of assessee firm on the basis of which, additional income was to be assessed in the hands of partnership firm i.e. one of the assessees before us, then for making aforesaid addition, recourse which was open to the Assessing Officer was to initiate proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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