INCOME TAX ACT, 1961

Section 153A Section 153C

Search and seizure - Assessment under section 153A - Validity - Proceedings undertaken under section 153C by dropping initial notice issued under section 153A

During pendency of proceedings under section 153A, AO initiated proceeding under section 153C by dropping proceedings under section 153A.Though proceedings were taken further under notice issued under section 153C however, impugned assessments were ultimately framed under section 153A read with section 143(3) determining income at respective figures.Held: In assessee's case though proceedings were purported to be continued under section 153C however, assessments were completed under section 153A despite consciously dropping the notice under section 153A. Assessments under sections 153A and 153C are independent and mutually exclusive. An assessment cannot be framed in continuation of both notices and similarly cannot be concluded under section 153A if proceedings are undertaken under section 153C. In view of this, impugned assessments were untenable and bad in law.