INCOME TAX ACT, 1961

Section 147 Section 153C

Reassessment - Validity - Reopening on strength of information received from Investigation Wing - Assessee pleading applicability of section 153C

Search was conducted at Ahmedabad and New Delhi in which certain documents were found and seized by the search party. From the documents found, unaccounted money lending business of Asharam Bapu and his associates came into light. It also came to the knoweldge of revenue that there were several beneficaries and assessee was one of them. AO on the strength of information received from investigation wing assumed jurisdiction under section 148 and accordingly, statutory notices were issued and served upon assessee. Assessee challenged validity of assessment framed under section 143(3) read with section 147 alleging that appropriate section was section 153C. Held: Since documents were found at premises of searched person, same did not belong to assessee and transactions recorded in seized documents were in the books of searched person and, therefore, information received from Investigation Wing was a tangible material evidence which prompted AO to initiate proceedings under section 148. Section 153C did not apply to facts of the case and, therefore, jurisdictional issue challenged by assessee did not hold any water.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 68

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