2017 (8) TMI 482

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....aling 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 based upon borrowed satisfaction of the Investigation Wing....

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....e 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 of income but are based upon borrowed satisfaction of the Investigation Wing of the department. 3. That the Ld. CIT (A) has err....

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....edings 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/- being unexplained cash invested in payment of fee. The income of the assessee was assessed at Rs. 25,50,000/- vide order dated 11.03.2015 passed u/s. 147/143(3) of Income Tax Act, 1961.....

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....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 Kapur - 140 TTJ 249 (Amritsar); ii) Cargo Clearing Agency vs. JCIT - 307 ITR 1 (Guj.); iii) Rajat Shubra Chatterji vs. ACIT, New Delhi ITA No. 2430/Del/2015 dated 20.5.2016. 7. On the contrary, L....