2025 (2) TMI 291

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....e assessee thereby setting aside the assessment order dated 08.12.2018, relating to the assessment year 2011-12, and passed u/s 147 r.w.s. 143(3) of the Act. Assessment Order 2. Vide assessment order dated 08.12.2018, the Assessing Officer made two additions i.e. one to the tune of Rs. 3,61,00,000/-, and other to the tune of Rs. 17,93,000/-. 3. In brief, it may be mentioned here that case of the assessee was reopened and notice u/s 148 of the Act was issued on 30.03.2018 whereupon the assessee filed return of income, declaring total income of Rs. 17,08,170/-, the one even earlier declared by him, while filing original return of income dated 29.09.2011. As per case of the department, information was received from DCIT, Central Ci....

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....d documents including Pen Drives seized during the search carried out of the Manihar Group and the statements recorded during proceedings. From the information received the AO noticed that the loan advanced and interest earned thereon were unaccounted. In other words the basis for initiation of Section 148 proceedings is the material seized relating to or belonging to the petitioner, during the search conducted of Manihar Group. 24. In the case where search or requisition is made, the AO under Section 153A mandatorily is required to issue notices to the assessee for filing of income tax return for the relevant preceding years. The AO assumes jurisdiction to assess/reassess 'total income' by passing separate order for each a....

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....to new Section 148 is akin to Section 153A and Section 153C. Corollary being that after seizing of operational period of Section 153A to 153D, the cases being dealt thereunder were circumscribed in the scope of newly substituted Section 148. 29. The Department has not set up a case that for initiating proceedings under Section 148 it had material other than the material seized during the search of Manihar Group. The contention was that though the material with regard to unaccounted loan advanced by the petitioner was received, the earning of interest on unaccounted loan was derivation of the AO from the material received. The submission is that the derived conclusion cannot be acted upon under Section 153C. The submission lacks mer....

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....r dealing with income of Rs. 100+Rs.200+Rs.150, the total income being Rs. 450/-. In cases where there is no unearthing of undisclosed income of Rs. 200/-, the department can resort to proceeding under Section 147/148. 32. The argument that Section 153C can be invoked in case there is incriminating material for all the relevant preceding years and otherwise Section 148 is to be resorted to, is misplaced. On satisfaction of the twin condition for proceedings under Section 153C, the AO has to proceed in accordance with Section 153A. Notice is to be issued for filing of the retums for relevant preceding years and thereupon proceed to assessee or reassesses the 'total income'. It is not obligatory on the AO to make assessment f....