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Facts
A search and seizure action led to an assessment order. The CIT(A) set aside this order, relying on a High Court decision that special procedures under Section 153A to 153D prevail over general provisions. The department appealed this.
Held
The Tribunal held that since the department itself had acted upon the High Court decision by issuing a notice under Section 153C prior to filing the appeal, the department's appeal was not maintainable.
Key Issues
Whether the appeal filed by the department is maintainable when it has already acted on the very ground that led to the assessee's appeal being allowed by the CIT(A)?
Sections Cited
148, 143(3), 147, 132, 153A, 153D, 153C, 253(4)
AI-generated summary — verify with the full judgment below
PER: NARINDER KUMAR, JUDICIAL MEMBER Department-appellant is before this Appellate Tribunal, while challenging order dated 05.04.2025, passed by Learned CIT(A), relating to the assessment year 2012-13, whereby the appeal filed by the assessee has been allowed and the assessment order dated 03.12.2019 has been set-aside. 2. On the other hand, the assessee has filed Cross-objections to the appeal filed by the Revenue, opposing the same.
Arguments heard. File perused.
As is available from the impugned order, Learned CIT(A) relied on decision by our own Hon’ble High Court in DB Civil Writ Petition No.18363/2019 and other connected petitions, whereby notices issued under section 148 of the Act and the resultant assessment orders were quashed on the technical ground that notice under section 148 of the Act was not sustainable. 5. In this matter, consequent upon a search and seizure action under section 132 of the Act carried out in the case of Ramesh Manihar Group on 07.01.2016, on receipt of information that the assessee was associated with the said group and had paid cash loans from undisclosed income, and received interest income on said loans. Consequently, notice under section 148 of the Act was issued to the assessee on 27.3.2019, after approval from competent authority, and the assessment order was passed on 03.12.2019 under section 143(3) read with section 147 of the Act. 6. In Suresh Bansal’s case (supra), Hon’ble High Court quashed notice under section 148 of the Act and the impugned assessment orders, on the ground that in cases of search and requisition, special procedure is prescribed under sections 153A to 153D, which prevails over the general provision like sections 143, 147 and 148 of the Act.
Following said decision, Learned CIT(A) set aside the assessment order passed in this case, which arose from the search action on the abovesaid Group, but, special procedure under section 153 C was not followed.
Today, Learned DR for the appellant and Learned AR for the assessee have brought to the notice of the Bench that acting upon the decision in Suresh Bansal’s case, the department has already issued notice under section 153C to the assessee. Once the department has itself acted upon the said decision and issued notice under section 153C of the Act even prior to the filing of present appeal, it can safely be said that the appeal filed by the department on 25.6.2025 challenging the impugned order passed by Learned CIT(A) is not maintainable. Result 8. As a result, the appeal filed by the department is hereby dismissed being not maintainable. Cross-Objections 9. Said cross- objections have been presented by the assessee under section 253(4) of the Act, on having learnt about filing of appeal by the department against the order passed by Learned CIT(A).