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Facts
The Department filed appeals against orders of the CIT(A) who had set aside assessment orders passed by the AO. The original assessment orders were based on a search and seizure action concerning the Manihar Group, from which incriminating material was found. The notices for reassessment were issued under Section 147/148 of the Income Tax Act.
Held
The Tribunal held that in cases where search or requisition is made, and incriminating material belongs to or relates to a person other than the one searched, the Assessing Officer (AO) must proceed under Section 153C of the Act. Since the notices under Section 148 were issued without following the procedure under Section 153C, they were quashed.
Key Issues
Whether notices for reassessment under Section 147/148 are valid when incriminating material was seized in a search related to another person, and Section 153C procedure was not followed.
Sections Cited
147, 143(3), 148, 153A, 153C, 139, 149, 151, 153, 153B, 153D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM
per section 153C of the Act instead of resorting to notices u/s 148 of the Act.
Result
As a result, finding no merit in these appeals filed by the department, we uphold the two impugned orders passed by Learned CIT(E).
Copy of common order be also placed in the connected appeal file. office.
Order is pronounced in the open court on the 03th Day of April, 2025.
Sd/- Sd/- (NARINDER KUMAR) (GAGAN GOYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Tk;iqj@Jaipur fnukad@Dated:- 03/04/2025 *Santosh आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant-.DCIT, Central Circle-3, Jaipur. 1. 2. izR;FkhZ@ The Respondent- Shweta Chordia, Jaipur. 3. vk;dj vk;qDr@ The ld CIT विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 4. xkMZ QkbZy@ Guard File & 285/JPR/2025) 5. vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत