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TMI Blog2017 (4) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... rial amounting to Rs. 39,74,698/- and payment of commission amounting to Rs. 19,873/-. 3. Learned counsel for the assessee, at the outset, argued that the search in the case of Shri Vaibhav Jain and Navneet Jain were made u/s.132 of the Act who have been indulging in profiting accommodation entries through their thirty seven paper entries and charging commission from the beneficiary on the accommodation entries provided. He argued that provisions of Section 153C provides that person relating to whom some material is found in search of some other person is also be assessed u/s.153C of the Act and in the present case as alleged by the AO and the learned CIT(A) that a search u/s.132 was conducted on Shri Vaibhav Jain and Shri Navneet Jain the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iciary as per the information received, notice u/s 148 was issued on 20.03.2014, with the prior approval of the erstwhile Joint Commissioner Income Tax, Range-20 (Now Range 36), New Delhi. The A.R., of the assessee vide letter dated NIL filed at dak counter on 09.06.2014 stated that the return of income filed 31.10.2007 declaring taxable income of R5.2,72,996/- may be treated as return filed response to notice u/s 148. The A.R., of the assessee vide letter filed on 09.072014 raised objections against the issue of notice u/s 148 which were disposed off vide letter No.ITO/Ward 20(4)/2014-15/207 dated 28.07.2014. Notice u/s 143(2) and 142(1) was issued on 28.07.2014. In compliance to the notices issued Shri A.K. Aggarwal, appeared and furnishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings in the case of Vaibhav Jain and Navneet Jain have been initiated u/s.153C of the Act, 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, reported in (2016) 47 CCH 0135 (Del Tri) and the relevant findings at pages 3 and 4 of the order are reproduced hereinbelow: "5. The Learned AR submitted further that the reasons recorded are neither signed nor is there any date on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand tried to justify the action of the Assessing Officer in initiating reopening proceedings. He submitted that the Assessing Officer was in possession of specific information that sweat equity shares in the hands of the assessee was taxable under section 28(iv) of the Act. The Assessing Officer had recorded his reasons to belief on perusal of letter of DDIT and records of the assessee that income to the extent of Rs.z lacs has escaped assessment. 7. On having gone through the decisions cited above especially the decision of Amritsar Bench in the case of ITO vs. Arun Kumar Kapoor (supra), we find that in that case as in the present case before us, reassessment was initiated on the basis of incriminating material found in search of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment, if any, which excludes the application of sec. 147 of the Act, hence, notice issued under sec. 148 of the Act and assessment framed in furtherance thereto under sec. 147 read with section 143(3) of the Act are void ab initio. The reassessment in question is accordingly quashed. The ground No.1 is accordingly allowed. 8. Ground No.2 to 5: In these grounds, the validity of addition of Rs. 21acs sustained by the Learned CIT(Appeals) made under the provisions of section 28(iv) has been questioned. These grounds do not need any adjudication as the same have become infructuous and academic in view of the above finding that reassessment was void ab initio. These grounds are accordingly disposed off." 7.1 And also the decision of SMC Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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