2018 (11) TMI 1736

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....d u/s 143 (3)/147 of the Act. Secondly the assessee is aggrieved by the addition of Rs. 25 lacs made u/s 69 C of the Act on account of alleged unexplained expenditure. 4. Briefly stated the facts of the case are that as per the information available with the department the Assessing Officer came to know that the assessee has given donation/capitation fee of Rs. 40 lacs for the admission of his son Shiv Kumar Gaur for the course of MS ENT. The assessee was asked to furnish source of investment in capitation/ donation fees of Rs. 40 lacs and to furnish his assessment details. 5. The assessee filed a detailed reply explaining that he has paid only Rs. 15 lacs was paid in cash during the financial year 2010-11 out of cash savings of his f....

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...., Chhoti Holi, Near Ganga Mandir, Khurja, Bulandshahr PAN:- AGNPS2979Q Reason for initiating proceeding u/s 147 of IT Act 1961. A search operation u/s 132 was carried on 27.06.2013 in the premises of Santosh Group of institution and Dr. P. Mahalingam. Certain documents/ books of account were seized from the above premises which revealed that donation /capitation fee over and above the regular courses, During the course of recording statement u/s 132(4) of I. T. Act, 1965 relevent seized materials were confronted to Dr. P. Mahalingam, chairman of the Trust . He has categorically admitted of accepting donation / capitation fee in cash and offered unaccounted money so received for taxation. On perus....

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....as in the present case before me, reassessment was initiated on the basis of incriminating material found in search of third party and the validity of the same was challenged by the assessee before the Learned CIT(Appeals) and the Learned CIT(Appeals) vitiated the proceedings. The same was questioned by the Revenue before the ITAT and the ITAT after discussing the cases of the parties and the relevant provisions in details has come to the conclusion that in the above situation, provisions of sec. 153 C were applicable which excludes the application of sections 147 and 148 of the Act. The ITAT held the notice issued under sec. 148 and proceedings under sec. 147 as illegal and void ab initio. It was held that Assessing Officer having not foll....