TaxTMI 
TaxTMI 
2018 (10) TMI 1599
X X X X Extracts X X X X
X X X X Extracts X X X X
....matter before Ld.CIT(A), who vide order dt.21.07.2017 (in appeal No.PN/CIT(A)-5/ITO-2(1), Pune/539/2013-14) dismissed the appeal of assessee. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us and has raised the following grounds : "1. In the fact, circumstances and position of law, learned CIT(A), erred in not annulling the assessment framed u/s 143(3) r.w.s 148 of I.T. Act, 1961. 2. In the fact, circumstances and position of law, learned CIT(A), erred in confirming the addition of Rs. 6,65,000/- on account of alleged on money against purchase of flat." 3. Before me, Ld.A.R. submitted that a search and seizure action u/s 132 of the Act was carried out in the case of "Marvel Group". One of the partner of Marvel Group in the statement recorded u/s 132(4) of the Act had admitted that they have collected "on money" from various flat purchasers and that amount was offered to tax by them. On the basis of the details found during the course of action, it was noticed that assessee had paid "on money" of Rs. 6,65,000/-. The case was therefore re-opened u/s 148 of the Act and in the assessment proceedings pursuant to re-opening, amount of Rs. 6,65,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... also paid "on money" of Rs. 6,65,000/-. Thus, it is seen that the re-opening was on the basis of search carried out at Marvel Group, wherein the documents pertaining to the assessee was found. AO had initiated re-assessment proceedings and had framed the assessment u/s 143(3) r.w.s. 147 of the Act. It is assessee's contention that AO should have proceeded u/s 153C of the Act instead of Sec.147 / 148 of the Act. I find that identical issue arose in the case of V.L. Khandge and others in ITA No.1971 & 2057/PUN/2014 and others, wherein the Co-ordinate Bench of the Tribunal has held that AO after receipt of information belonging to assessee that was found during the course of search should have been initiated proceedings u/s 153C of the Act and not u/s 147/148 of the Act. It was further held that in such a situation, the re-assessment proceedings passed u/s 148 of the Act does not stand. The relevant observation of the Tribunal in the case of V.L. Khandge and others (supra) read as under : "8. The issue which arises before us is whether in such facts and circumstances of the case, where the basis of making investigation and assessment thereafter in the hands of assessee is on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Shailesh Joshi Vs. DCIT in ITA Nos.95 & 96/PUN/2016, relating to assessment years 2009-10 & 2010-11, vide consolidated order dated 27.03.2018. The relevant findings of the Tribunal are as under:- 28. The first issue which arises is whether the assessment in such circumstances was to be made under section 153C or 148 of the Act and connected issue is whether such an issue of assessment being completed under a particular section was valid or not, can be raised while deciding the issue of levy of penalty under section 271(1)(c) of the Act against the income assessed in the hands of assessee. In this regard, the learned Authorized Representative for the assessee has pointed out that the issue stands covered by the ratio laid down in ITO Vs. Shri Shailendra B. Agrawal (supra) and in bunch of appeals with lead order in ACIT Vs. Shamsundar Laxman Jagtap (supra). The relevant provisions of the Act to which reference is being made is section 153C of the Act which provides as under:- "153C. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sfied that any money, bullion, jewellery or other valuable article or thing seized or requisitioned, belongs to; or any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, such books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and the Assessing Officer shall proceed against such other person and issue notice and assess or reassess the income of other person in accordance with provisions of section 153A of the Act. Section thus, very clearly lays down the procedure to be followed when during the course of search on a person any money, bullion, jewellery or valuable article or thing, or any books of account or documents or any information contained therein pertains to or relate / relates to other than the person searched; then first, all the said assets or information is to be handed over to the Assessing Officer, who is incharge of the person other than the person searched and then the Assessing Officer has to proceed and determine the inc....