LIFEWOOD HORTICULTURE PRIVATE LIMITED,KOLKATA vs. DCIT, CENTRAL CIRCLE 3(2),, KOLKATA

आदेश / O R D E R Per George Mathan, JM: This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2014-15/10111319 dated 30.09.2025. 2. Shri Sunil Surana, AR represented on behalf of the assessee and Shri Manas Mondal, Sr. DR represented on behalf of the revenue.

2 ITANo.2620/Kol/2025 vide letter dated 11.12.2018. It was the submission that the incriminating material against the assessee has been found on the date of search on Banka Group on 21.05.2018 and the proceedings are required to be done under the provisions of section 153C of the Act. It was the submission that however, the proceedings have been done against the assessee by invoking the provisions of section 148 on 30.03.2021. It was the submission that wrong proceedings have been initiated u/s 148 and the notice issued u/s 148 and consequential assessment are liable to be quashed. 4. In reply, the ld. Sr. DR submitted that credible information have been received against the assessee and on the basis of this information, the reopening has been done. He vehemently supported the orders of the Assessing Officer and ld. CIT(A). 5. I have considered the rival submissions. A perusal of the facts of the present case clearly shows that there was search on Banka Group on 21.05.2018. Incriminating materials have been found against the assessee which have been brought to the attention of the Assessing Officer by the Deputy Director of Investigation, Unit-1(3), Kolkata as early as on 06.03.2019 vide a letter dated 11.12.2018. Time was still available for initiating proceedings u/s 153C of the Act. However, it is notice that the proceedings u/s 148 was initiated on 30.03.2021, this is after the time for the proceedings u/s 153C of the Act have expired.

3 ITANo.2620/Kol/2025 Incriminating material has been found against the assessee on the course of search on a third party, obviously satisfaction is to be recorded and information is to be passed on to the Assessing Officer having jurisdiction over the assessee against whom such material has been found and the Assessing Officer of such person is to record satisfaction if the Assessing Authority is different and proceed with the assessment as per provisions of section 153C of the Act. Proceedings u/s 148 is not the proceedings to be taken when the incriminating material is found in the course of search on third party and such information has been provided well within the time for initiating proceeding u/s 153C of the Act. As it is noticed that the proceedings have been initiated u/s 148 instead of 153C, obviously the proceedings u/s 148 is liable to be treated as invalid and consequently quashed. The notice isused u/s 148 is quashed and consequently the assessment also stands quashed. This view of mine also finds support by the decision of the Coordinate Bench of the Tribunal in the case of NM Estates Private Limited in ITA Nos.1510-1512/Kol/2025 wherein in para 5 the Coordinate Bench of the Tribunal has held as under: “5. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the Assessing Officer in the reasons recorded has categorically referred to materials seized in the course of search from Sri Mukesh Banka which related to the assessee’s company and on which analysis, the Assessing Officer has done the reopening u/s 148. A perusal of the show-cause notice on 22.03.2022 which has been extracted above also refers to seized materials and clearly shows the incriminating materials related to the assessee has been found in the course of search on Banka Group. A perusal of the

4 ITANo.2620/Kol/2025 provisions of section 153C specifically shows that if incriminating materials have been found in the course of search on a third party, then such incriminating materials shall be handed over to the Assessing Officer and the provisions of section 153C shall apply. We are of the view that admittedly incriminating materials related to the assessee have been found in the course of search on Banka Group and the provisions of section 153C is to be applied and not the provisions of section 148. This being so, as it is noticed that the Assessing Officer has not done the assessment u/s 153C but has reopened the assessment u/s 148, the reopening of the assessment is found to be invalid and the same stands quashed. Consequently, assessments as a consequence of the notice issued u/s 148 also stands quashed. The appeal of the assessee stands allowed in Ground no.1 of additional ground filed by the assessee and other grounds have not been argued by the assessee and those grounds are not being adjudicated.” 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 05/05/2026.

Sd/- (GEORGE MATHAN) न्यधनयक सदस्य / JUDICIAL MEMBER Dated 05/05/2026 RS आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- प्रत्यर्थी / The Respondent- 2. 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file.

सत्यापपत प्रतत //True Copy// आदेशधिुसधर/ BY ORDER,

(Assistant Registrar) Income Tax Appellate Tribunal, Kolkata