TaxTMI 
TaxTMI 
2017 (8) TMI 482
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....order for the sake of convenience, by dealing with ITA No. 1500/Del/2017 (AY 2007-08). 2. The grounds raised in the Assessee's appeal (ITA NO. 1500/DEL/2017) (AY 2007-08) read as under:- 1. That the Ld. CIT (A) has erred in not appreciating that the proceedings initiated u/s. 147/ 148 are invalid and illegal as the reasons recorded do not reflect any tangible material on the basis of which the Assessing Officer could have reasons to believe that any income has escaped assessment. 2. That the Ld. CIT (A) has erred in not appreciating that the proceedings initiated u/ s 147/148 are invalid and illegal as the reasons recorded do not reflect any satisfaction of the Assessing Officer regarding escapement of income but are ba....
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....llant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the Appeal. 3. The grounds raised in the Assessee's appeal (ITA NO. 1501/DEL/2017) (AY 2007-08) read as under:- 1. That the Ld. CIT (A) has erred in not appreciating that the proceedings initiated u/s. 147/ 148 are invalid and illegal as the reasons recorded do not reflect any tangible material on the basis of which the Assessing Officer could have reasons to believe that any income has escaped assessment. 2. That the Ld. CIT (A) has erred in not appreciating that the proceedings initiated u/ s 147/148 are invalid and illegal as the reasons recorded do not reflect any satisfaction of the Assessing Officer regarding escapement o....
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.... 10. That the Appellant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the Appeal. 4. The brief facts of the case are that in this case proceedings u/s. 148 of the Income Tax Act, 1961 (hereinafter referred as the Act) initiated by the AO based on the information that assessee has invested a sum of Rs. 25,50,000/- towards admission to MS ENT course during the assessment year 2007-08. The assessee has furnished return of income in response to notice u/s. 148 of the Act declaring NIL income. The assessee was required to furnish the source of payment made to Maharaja Education Trust for the above mentioned course. After considering the reply of the assesee, the AO made an addition of Rs. 25,50,000/-....
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....rovides that persons relating to whom some material is found in search of some other person should be assessed under sec. 153C of the Act. The provisions of section 153~C are non-obstantive provisions and specially excludes the operation of sec. 147 of the Act, therefore, the Assessing Officer in the present case has erred in invoking the provisions of sec. 147, instead of 153C of the Act. If action under sec. 147 is permitted on the basis of material found in the course of search, then the provisions of sec. 153 would be redundant. In this regard, he placed reliance on the following decisions to support his above contentions that no action under sec. 147 is permissible on the basis of material found in search: i) ACIT vs. Arun Kap....
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....also draw my support from the ITAT, New Delhi decision in the case of Rajat Shubra Chatterji vs. ACIT, New Delhi ITA No. 2430/Del/2015 dated 20.5.2016, wherein the reassessment was quashed on the similar facts and circumstances by following the ITAT, Amritsar decision in the case of ITO vs. Arun Kumar Kapoor (supra). In the present case before me, it is an admitted fact, as also evident from the reasons recorded and the assessment order that the initiation of reopening proceedings was made by the Assessing Officer on the basis of information available with the AO. I thus respectfully following the decision of Co-ordinate Bench of the ITAT, Amritsar in the case of ACIT vs. Arun Kapur - 140 TTJ 249 vs. (Amritsar) and the ITAT, Delhi decision ....