TaxTMI 
TaxTMI 
2026 (6) TMI 1047
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..... Prior to the rejection of the declaration filed by the petitioner availing the benefit under the scheme, it appears that the petitioner was subjected to the reassessment by the department by resorting to the provision of Section 153(C) of the Income Tax Act, 1961, (for short, "the Act") on the basis of the search proceedings conducted under Section 132 of the Act by the investigating wing on the Residential and Official premises of one Sadhani Brothers and also simultaneously a survey action under Section 133A of the Act was also carried out. It was alleged that the petitioner was beneficiary of the accommodation entries managed and maintained by the Sadhani Brothers and such allegations emanated from the incriminating material, i.e., the documents seized from the search and survey action against Sadhani Brothers. 3.2. It appears that thereafter, the petitioner objected to the proceedings under Section 153C of the Act and accordingly by the order dated 24.12.2019 passed by the respondent authority, the proceedings initiated under Section 153C of the Act were dropped. Subsequent thereto, it appears that for the AY in consideration, the assessment was reopened by the department ....
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.... by resorting to the provision of Section 153C of the Act which has direct link with 'search' under the provision of Section 132 of the Act has been dropped and instead, the department has resorted to invoke the provision of Section 147 of the Act based upon 'survey' material under Section 133A of the Act and since the provision of Section 132 of the Act would not apply, the petitioner cannot be restricted from availing the benefit of the scheme. Thus, it is urged that the impugned action of the respondent in rejecting the Form No. 1 dated 31.12.2024 may be quashed and set aside. SUBMISSIONS ON BEHALF OF REVENUE 5. Opposing the present writ petition and the aforesaid submissions, learned Senior Standing Counsel Mr. K. G. Sanghani, while referring to the contents of the affidavit-in-reply has submitted that the petitioner was subjected to the reopening of the assessment by resorting to the provision of Section 153C of the Act on the basis of search and survey action undertaken under Section 132 and 133A of the Act at the residential and office premises of Sadhani Brothers on 08.06.2017, and during the course of search and survey and on the basis of the incriminating material f....
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....the statutory scheme of Section 153C of the Act, the proceedings of assessment emanate from the 'search' conducted under Section 132 of the Act whereas the Survey action finds place in Section 133A of the Act. After the proceedings under Section 153C of the Act were dropped which emanated from search action under Section 132 of the Act, the petitioner was called upon to face the proceedings while resorting to the provision of Section 147 of the Act. The reopening of the assessment was undertaken for the AY 2015-16 after dropping of the proceedings under Section 153C of the Act by the order dated 24.12.2019. The petitioner objected the reopening of the assessment under Section 147 of the Act by an order dated 24.12.2021. The request of the petitioner for reopening the assessment under Section 147 of the Act was rejected. A close scrutiny of the order dated 24.12.2021 would reveal that the respondent authorities at various places had categorically referred that the proceedings under Section 153C of the Act was dropped since the same were wrongly initiated under this provision on the basis of impounded materials found during the "survey action" whereas Section 153C of the Act provide ....
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....s of search initiated under section 132 or section 132A of the Income-tax Act;" 6.3. A bare perusal of the aforementioned provision of Section 96(a)(i) of the Scheme will clarify that the provisions of the Scheme do not apply in respect of the assessment which has been made under Subsection 3 of Section 143 or Section 144 or Section 147 or Section 153A or Section 153C of the Act, "on the basis of search initiated under Section 132 or Section 132A of the Act". Thus, a categorical emphasis has been supplied under the provision of Section 96(a)(i) of the Scheme denying the benefit of the Scheme in respect of the assessments framed under the Sections emanating from the 'search' initiated under Section 132 or Section 132A of the Act. 6.4. In the present case, it is true that on the basis of the material which were impounded during the "search" under Section 132 of the Act and "survey action" under Section 133A of the Act and the petitioner was roped into the reassessment proceedings initially by resorting to provision of Section 153C of the Act, however, the proceedings initiated under Section 153C of the Act were dropped by the order dated 24.12.2019 and instead, the proceedings ....