INCOME TAX ACT, 1961

Section 153C Section 147

Reassessment - Validity - Reopening on the basis of assessee's regular books of acount found during search in case of third party - Assessee pleading non-invocation of section 153C by AO

Assessee challenged validity of assessment framed by AO under section 147 on the ground that reopening of assessment was based on assessee's books of account found during search in case of third party and in such situation AO should have proceeded under section 153C.Held: Merely because regular books, of other persons, i.e., assessee, were found with searched persons assumption of jurisdiction by AO over assessee might be justified but since these were generally regular books of account on the basis of which returns were prepared, there could not be any undisclosed income arising out of them and in view of expression, 'books of account/documents/assets seized have a bearing on the determination of total income' appearing in section 153C(1), proceedings under section 153C would not be valid. In view of this, AO did not have any jurisdiction to invoke the provisions of section 153C and therefore, AO had rightly invoked section 147.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 68

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