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TMI Blog2019 (10) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... 132 of the Act was conducted in the case of Chhoriya group on 22.08.2008. The said search action resulted the seizure of incriminating material by way of a diary containing various entries. Such entries relate to both the two assessees. Otherwise, there is no dispute on the fact that the diary belongs to the Chhoriya group where the provisions of section 153A of the Act were invoked. The common issue arises in these two appeals for the same assessment year 2003-04 relates to whether the provisions of section 153C of the Act or the provisions of section 147/148 of the Act are relevant for making the assessments and also for making the additions based on the related seizure entries from the seized materials in Chhoriya group of cases. In the light of the above specific facts, ld. Counsel for the assessee brought our attention to the assessment orders in these two cases and submitted that the reassessments were erroneously made u/s 144 r.w.s. 148 of the Act and not u/s 153C of the Act. In this regard, ld. Counsel raised the legal ground by way of additional grounds/concise grounds in these two appeals. The additional grounds as well as the concise grounds raised by assessee in both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iya Group of cases during search and seizure action, having complete disregard to the assessments framed in Chhoriya Group of cases and the treatment given to the contents of the seized papers in the assessments of the said group. The impugned order passed by the learned C.I.T.[A] being patently illegal, bad in law, arbitrary, perverse and devoid of merits the same may please be annulled. 5. The appellant denies his liability to pay any interest u/s 234 B of the I. T. Act 1961 and hence the impugned interest levied may please be deleted. 6. 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. The appellant submits his sincere apologies for inconvenience caused to the Hon. Members and the Respondent revenue in the matter." 3. Referring to the above extracted additional grounds as well as concise grounds in both the appeals on the common legal issue, ld. Counsel for the assessee submitted that this issue is now settled by the Pune Bench of the Tribunal in the case of Jayant Hemraj Choudhari vs. ITO vide ITA No.672/PUN/2018 for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of the amended 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 par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer 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 incharge 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 153 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorized Representative 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 initiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thus, very clearly 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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