TaxTMI 
TaxTMI 
2024 (10) TMI 1812
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....d necessary returns for the Assessment Year 2012-13. Thereafter, upon a search conducted by the authorities concerned on the premises of a third party, certain records were seized. Based on the said records, the assessment filed by the petitioner was sought to be reopened. It is contended that, when reopening of the assessment is done solely based on any materials seized from the premises of a third party, proceedings have to be initiated under Section 153C of the Act and not under Section 147 of the Act. 3. Per contra, the learned counsel for respondents submits that in the instant case, the assessing Officer had reason to believe that the income of the petitioner has escaped assessment and the said, 'reason to believe', is based upon the information received from another officer from the Income Tax Department and thus, it satisfies the criteria required under Section 147 of the Act. It is also contended that even presuming that the reopening is done only based upon the materials seized from the premises of a third party, even then the revenue has a discretion to proceed against the petitioner either under Section 153C or under Section 147 of the Income Tax Act. It is f....
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....s a result income chargeable to tax amounting to Rs.1,21,65,109/- has escaped assessment within the meaning of provisions of section 147 of the IT Act"". 7. The aforesaid material goes to establish that in the instant case, re-assessment has been ordered as against the petitioner solely based upon the materials seized from the premises of a third party. 8. With regard to question No.2, the relevant provision of Section 147 of the Act as it was before amendment, which is applicable to the present case and Sections 153C & 153A of the Act read as under: "Income escaping assessment. 147. If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for such assessment year (hereinafter in this section and in sections 148 to 153 referred to as the relevant assessment year)" Section 153C of the Act, reads as follows: Assessment of income of any other person. 153C. (1) Not withstanding anything conta....
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....ed to in subsection (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under subsection (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. (3) Nothing contained in this section shall apply ....
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....or assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made [and for the relevant assessment year or years] Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless- (a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakhs rupees or more in the relevant assessment year or in aggregate in the relevant assessment years; (b) the income referred to in clause (a) or part thereof has escaped assessment for such year or years; and (c) the search under section 132 is initiated or requisition under section 132A is made on or after the 1st day of April, 2017. Explanation 1.- For the purposes of this subsection, the expression "relevant assessment year" shall mean an assessment year preceding the assessment year relevant to the pervious year in whi....
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.... of Rajasthan while examining the similar matter in the case of Shyam Sundar Khandelwal vs. Assistant Commissioner of Income-tax reported in [2024] 161 taxmann.com 255 (Rajasthan) in paragraph Nos.26, 27, 28, 38 and 40 has held as under: "26. Special procedure is prescribed under section 153A to 153D for assessment in cases of search and requisition. There cannot be a quibble with the proposition that the special provision shall prevail over the general provision. To say it differently the provisions of section 153A to 153D have prevalence over the regular provisions for assessment or reassessment under section 143 & 147/148. 27. Section 153A and 153C starts with non-obstante clause. The procedure for assessment/reassessment in section 153A, 153C in cases of search or requisition has an overriding effect to the regular provisions for assessment or reassessment under sections 139, 147, 148, 149, 151 & 153. 28. The language of explanation 2 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 sub....