TMI Blog2017 (4) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore, if in view of the department the information so received is considered as a material, the assessment in the present case should have been made u/s.153C and accordingly proceeded u/s.153A to 153C which should have been initiated in the present case but the proceedings u/s.147/148 of the Act has been initiated which itself is bad in law and the reliance is placed in the case of Rajat Subhra Chaterjee [ 2016 (7) TMI 258 - ITAT DELHI ] In the circumstances and facts of the case, the proceedings initiated u/s.148 of the Act are ab initio and are directed to be quashed - Decided in favour of assessee. - ITA No. 1853/Del/2017 - - - Dated:- 21-4-2017 - SHRI B.P. JAIN, ACCOUNTANT MEMBER For the Assessee : S/Shri V.K. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces u/s.148 of the Act. Accordingly, learned counsel for the assessee relied upon the decision of various courts of law in this regard. 4. Moreover, the learned counsel also argued on merit that the same parties have been providing the materials for the assessment year 2006-07 in the preceding year as well as in the following year and their copy of account and the copy of assessment are on record, and therefore, rule of consistency should be applicable in view of the decision of Hon ble Jurisdictional High Court in the case of CIT vs. Neo Poly Pack (P) Ltd., dated 19th April, 2000, reported in (2000) 112 taxman 363 (Delhi). 5. Learned DR relied upon the orders of the authorities below. 6. I have heard the rival contentions and peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s given statement on oath u/s 131 that he has given accommodation entries through thirty seven paper entities. The list of firms giving accommodation entries and the list of accommodation entry recipients have been provided. Shri Vaibhav Jain and Shri Navneet Jain had admitted to be engaged in the business of providing paper/accommodation entry without any delivery of goods. It is also submitted on oath that the sale bills (accommodation/paper bills) were destroyed, no sooner the transaction related to the respective bills were over. No books of accounts were maintained for the accommodation transaction. It is also admitted by him that the respective transaction of receipt of consideration in lieu of accommodation bills i.e. cheque by the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns laid down under sec. 147 of the Act. He submitted that it is an admitted position of the fact as it is also evident from the assessment order that the Assessing Officer has initiated reassessment proceedings in the present case on the basis of information received based on the material found during the course of search from the premises of RLH. The Learned AR contended that provisions of sec. 153C provides that persons relating to whom some material is found in search of some other person should be assessed under sec. 153C of the Act. The provisions of section 153C are non obstantive provisions and specially excludes the operation of sec. 147 of the Act, therefore, the Assessing Officer in the present case has erred in invoking the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the ITAT after discussing the cases of the parties and the relevant provisions in details has come to the conclusion that in the above situation, provisions of sec. 153C were applicable which excludes the application of sections 147 and 148.of the Act. The ITAT held the notice issued under sec. 148 and proceedings under sec. 147 as illegal and void ab initio. It was held that Assessing Officer having not followed procedure 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 recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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