HARSHARANKOUR GURMEETSINGH THETI,NAGPUR vs. INCOME TAX OFFICER, WARD-4(3), NAGPUR

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ITA 417/NAG/2022Status: DisposedITAT Nagpur09 May 2024AY 2012-13Bench: SHRI SATBEER SINGH GODARA (Judicial Member)2 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that reassessment proceedings under Section 147 were invalid as Section 153C provides a specific mechanism for assessing income based on material found during a search belonging to a third party. Therefore, the reassessment proceedings were quashed.

What were the facts?

The assessee's appeal for AY 2012-13 arose from reassessment proceedings initiated under Section 147. The reassessment was based on a sale purchase agreement found during a search at the premises of a third party.

What were the issues?

The primary issue was the validity of reassessment proceedings initiated under Section 147 when Section 153C was the appropriate provision for assessing income based on material seized from a third party.

Which sections of the Income-tax Act were involved?

Section 147,Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :NAGPUR [VIRTUAL HEARING]

Before: SHRI SATBEER SINGH GODARA

Hearing: 21.03.2024Pronounced: 09.05.2024

Date of Hearing : 21.03.2024 Date of Pronouncement : 09.05.2024 ORDER

This assessee’s appeal for assessment year 2012-13, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/ 2022-23/1046434839(1), dated 21.10.2022, involving proceedings u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2.

It emerges during the course of hearing that the first and foremost issue herein is that of validity of the impugned sec.147 proceedings itself since initiated on the basis of incriminating material/sale purchase agreement found/seized from the residential premises of the searched

2 ITA.No.417/NAG./2022 assessee late Shri Vijay Govindrao Kashikar on 21.07.2011. It is made clear that the legislature has already provided assessment of such third parties going by the relevant seized material; in sec.153C of the Act which is a special provision and complete Code in itself in light of the tribunal’s Third Member’s decision in Tarun Devon (P)

Ltd. Vs. DCIT, Jabalpur dated 09.10.2023.

3.

Learned DR could hardly rebut of these clinching facts as well as intervening legal developments. Faced with this situation, I hereby quash the impugned sec.148/147 proceedings in very terms. Ordered accordingly.

All other pleadings on merits stand rendered academic.

4.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open Court on 09.05.2024.

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