TMI Blog2021 (6) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... The said notice was issued even before the time for completing the assessment expired on 31.12.2016 i.e, 21 month from the end of the assessment year 2013-14 under Section 153 (1) for the assessment year 2013-14. Having issued the aforesaid notice dated 04.12.2015 under Section 148 it was incumbent to have completed assessment within a period of nine months as per Section 153(2) of the Income Tax Act, 1961 from the date of issue of the said notice. Since the period of nine months expired on 03/04.09.2016 in terms of Section 153(2) which is three months before the last date for completing the assessment on 31.12.2016, the officer therefore could not have proceeded further after the expiry of the nine months on the strength of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Petitioner (in both W.Ps) : Mr.Niranjan Rajagopalan for Mr.G.R.Associates For the Respondents (in both W.Ps) : Mr.A.P.Srinivas, Senior Standing Counsel COMMON ORDER By this common order, both these writ petitions are being disposed. W.P.No.16311 of 2013 has been filed for a declaration to declare the survey conducted by the 1strespondent on 03.09.2012 as illegal and ultra-vires in the provisions of the Income Tax Act, 1961 and consequently forbear the respondents from relying upon the details of the survey during the assessment or any other proceedings. 2.W.P.No.18671 of 2017 has filed to call for the records relating to the proceedings of the 2nd respondent under Section 147 of the Income Tax Act in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of Section 147. Therefore, the case has been reopened under Section 147 of the Income Tax Act, 1961. 7. Since the period of nine months for completing the assessment pursuant to notice issued on 04.12.2015 under Section 148 of the Income Tax Act, 1961 had expired on3.9.2015 in terms of Section 153(2) of the said Act, the respondentdropped the proceeding initiated vide notice dated 04.12.2015 by a communication dated 26.12.2016 which reads as under: To Shri C.B.Srinivasan, 288, Karuppa Gounder Street, Coimbtaore 1. Sub:Assessment proceedings A.Y.2013 -14-your own-reg. Ref:Pending Scrutiny assessment proceedings in your case. Please refer to the above.In this regard, it is hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property. Hence, the total unaccounted income found as a result of survey u/s 133A is tabulated as under: Unaccounted investment in Gold -₹ 2,88,94,264/- Unaccounted investment in Silver -₹ 4,09,436/- Unaccounted Cash -₹ 4,81,000/- Cash deficit -₹ 17,60,000/- Total -₹ 3,15,44,700/- The assessee had admitted the same as unaccounted that needs to be brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the present writ petition was liable to be dismissed. He further submits that though at the time of survey undisclosed income and the ornaments were found they could not be seized on account of under Section 133A of the Income Tax Act. 12.The learned counsel for the petitioner by way of re-joinder submits that the proceedings are contrary to Section 153 sub-clause 2 of the Income Tax Act, 1961. 13.I have considered the arguments advanced by the learned counsel for the petitioner and the learned counsel for the Income Tax Department. Facts are not in dispute. A survey under Section 133A of the Income Tax Act, 1961 was conducted on 03.09.2012 at the business premises of the petitioner which shared a common passage with the reside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ths on the strength of the said proceeding initiated on 04.12.2015 after the first week of the September, 2006. 18.Thus, there was a deemed assessment. Thus, there is no infirmity in the impugned proceeding after the earlier proceeding initiated vide notice dated 4.12.2015 was withdrawn was withdrawn vide communication dated 26.12.2016. 19.The respondent can issue a fresh notice under Section 148 of the Income Tax Act, 1961 which is what the respondent has done. It is to be emphasized that after 31.12.2016, the respondent had 4 years to invoke section 148 of the Income Tax Act 1961. 20.Communication dated 26.12.2016 merely states that the proceedings initiated under Section 148 of the Income Tax Act, 1961 on 04.12.1996 was be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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