9911796707
TMI BlogInterplay between the provisions of Section 153C and Section 147: Limits on Automatic Reassessment in Search CasesX X X X Extracts X X X X X X X X Extracts X X X X ..... Introduction The core legal question presented in this case relates to the applicability and interpretation of Sections 153A and 153C of the Income Tax Act. These provisions deal with the assessment and reassessment of income in cases where a search is conducted u/s 132 or a requisition is made u/s 132A concerning another person (referred to as the "searched person"). The specific issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the AO does not assume jurisdiction u/s 153C. Court Discussions and Findings The Court analyzed the provisions of Sections 153A and 153C in detail, highlighting the distinctions between them. It noted that Section 153A mandates the issuance of a notice and assessment/reassessment for the searched person upon the occurrence of certain events. However, Section 153C requires the satisfaction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the other person must be satisfied that the incriminating material has a bearing on determining the total income for the specific assessment years before issuing a notice u/s 153C. The issuance of a notice cannot be automatic or mechanical. Further, the non-obstante clause in Section 153C does not preclude proceedings u/s 147 when the AO does not assume jurisdiction u/s 153C. If the AO does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y when the enabling provisions are used or the jurisdiction is assumed. It cannot be construed to mean that recourse to the enabling provision is necessary, rendering other provisions nugatory. * Sections 153A and 153C are part of a cohesive scheme for assessment/reassessment in search cases, but with distinct conditions and procedures. * The AO must apply their mind to the incriminating mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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