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TMI Blog2022 (6) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was received from ACIT-CC-2(4), Ahmadabad that during the course of search on 15.10.2013 at the premises of M/s. Dharmadev Infrastructure Ltd., a total of 36 benami accounts were identified out of which one case is that of M/s. Ravi Nirman Nigam Ltd., having account no. 10569 in the Social Cooperative Bank Ltd., This account was opened on 24.09.2009 and closed on 03.07.2012. The Assessing Officer observed that on a perusal of the bank account it is observed that assessee had deposits amount of Rs. 2,26,82,500/- which includes cash deposits amounting to Rs. 10,82,500/- during the year under consideration. Accordingly, the assessment was reopened by issue of notice u/s. 148 of the Act and the assessment was completed. Aggrieved assessee preferred an appeal before the Ld. CIT(A) and Ld. CIT(A) dismissed the appeal filed by the assessee. 4. Aggrieved assessee is in appeal before us raising following grounds in its appeal:- "1. That on the facts and circumstances of the case and in law, the Ld. AO erred in initiating proceedings u/s. 147 of the Act without appreciating the fact that information was received from the office of the ACIT, Central Circle - 2(4) in connection with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portion of the Reason to believe issued by the Ld. A.O. in AY 10-11 viz. DCIT-13(3)(1) which is reproduced as below: "Since account of M/s. Ravi Nirman Nigam Ltd. found at the premise of M/s. Dliarmadev Infrastructure Ltd. is Benami, I have reason to believe that the income of at least Rs. 2,26,82,500/-, chargeable to tax has escaped assessment for A.Y. 2010-11 by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, for that assessment year and it is fit case for issuing notice u/s. 148 of the Income tax Act, 1961." Relevant Para of Reasons for AY 11-12 is reproduced below: 3. As per the information, in the case M/s. Ravi Nirman Nigam Ltd., huge debit/credit transactions were made in its account in very short period of time pertaining to A.Y. 2011-12, which includes cash deposits and thereafter the account was closed by the entity. The details of the transactions is as under- Sr. No AY. Name of the bank and Account No Amount of total credited Cash deposits out of amount total credits 1 2011-12 Social Co-operative Bank Ltd. No. 10569 Rs. 11,12,84,800/- Rs. 11,40,000/ 4. In the backdrop of abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Versa) 2021 (1) TMI 322 - ITAT Mumbai "9. ..... * Smt. Samanthapudi Lavanya v, Assistant Commissioner of Income Tax, Central Circle, Vijayawada "10.3 ..... * ACIT vs. Ws K.S. Chawla & Sons ('HUF) (ITA No. 2724/DEL/2015) - Delhi ITAT "9........ * Shri V.L. Khandge, Shri D.L. Khandge vs. ITO Ward-8(2), Pune and Vice Versa [2018 (4) TMI 1607 - ITAT Pune] "29 ......" * Karti P. Chidambararn vs. Principal Director of Income Tax (Investigation) [2021 (7) TMI 393 - Madras High Court] "83. ..... It must be noted that similar view has been taken in the following cases: * M/s. Rayoman Carriers Pvt. Ltd., v. Asst. CIT CEN CIR 12, Mumbai - 11A No. 3275/Mum/2015 & 3276/Mum/2015 * G. Koteswara Rao vs. Deputy Commissioner of Income tax, Central Circle 1, Visakhapatnam [2015] 64 taxmann.com 159 * Rajat Saurabh Chatterji v. ACIT ITA No. 2430/Del/2015 - Delhi ITAT There is no reason to believe with the AO: Without prejudice, the reassessment proceedings are bad in law as there is material with the AO to form reason to believe that income has escaped assessment: * The bank account is duly disclosed in books of account. * The bank account is in the name of appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not permitted. Reliance can be placed on the following decisions: i) PCIT-5 vs. Manzil Dineshkumar Shah [ (2018) 95 taxmann.com 46 - Gujarat High Court] "7....... ii) Jalaram Enterprises (P.) Ltd. vs. ITO [ (2019) 104 taxmann.com 134 - Bombay High Court] In view of above submission, it is humbly requested that appeals be allowed and reassessment orders are quashed." 7. On the other hand, Ld. DR relied on the orders passed by the lower authorities and submitted that it is not clear whether the material found during search that this issue was emanating from the search materials. 8. Considered the rival submissions and material placed on record, we observe from the record that the assessment was reopened mainly on the basis of information received from ACIT, Ahmadabad that during search proceedings in the case of M/s. Dharmadev Infrastructure Ltd., they unearthed the information relating to bank account in the case of assessee which contain the details of deposits and cash deposits. Based on the above information the assessment was reopened. Now before us assessee has filed the additional ground of appeal, challenging the above proceedings that whether the information fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Apart from the Section containing a non- obstante clause, Section 153A and 153C also provides for a mechanism whereby all pending proceedings and assessments, as on date of receipt of materials seized by the Assessing Officer, shall stand abated. 83. Therefore, upon a conspectus of the relevant provisions, it is clear that the recourse under Section 153A and Section 153C is a special procedure that gets triggered upon receipt of incriminating material post any search or requisition. The normal course of assessment and reassessment is fundamentally altered when a search or requisition takes place under Section 132/132A and the moment, the seized materials are received by the Assessing Officers, the special procedure laid out under Section 153A or Section 153C shall come into effect. The use of the non-obstante clause coupled with the abatement mechanism contained in the provisions makes it clear that the legislative intent was for Assessing Officers to proceed only under Section 153A or Section 153C upon receipt of material seized or requisitioned. This special procedure is a derogation from the regular procedure for assessment or reassessment and only some immunity has been car ..... 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