| The Tax Publishers2020 TaxPub(DT) 3009 (Rkt-Trib) INCOME TAX ACT, 1961
Section 153C
In documents seized during search in case of third party there was no name, address, phone numbers, PAN, banking details or any other specific detail related to assessee was mentioned neither assessee nor persons closely connected with him were having any dealing of whatsoever with searched person. Accordingly, documents seized from the premises of search party did not belong to assessee and, therefore, poceedings under section 153C could not be initiated in assessee's case as per provisions of section 153C as applicable on the date of search, i.e., prior to 1-6-2015.
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Search and seizure - Assessment under section 153C - Documents seized not belonging to assessee -
During search on `16-10-2014 in case of M/s. A which was a third party, excel sheets containing various details such as survey numbers, size (vigha), amount paid and legal status, etc.. Out of various survey numbers mentioned in excel sheet, two survey numbers were representing lands purchased by the assessee. AO on verifciation of the sale deeds of the impugend survey numbers noticed that amount mentioned in the seized documents was greater than the amount mentioned in sale deeds. Accordingly, AO took the view that assessee had made investment in lands without recording the same in books of account and, therefore, AO initiated the proceedings under section 153C in assessee's case. Assessee objected to initiation of proceedings under section 153C contending that documents seized did not belong to assessee. Held: Provisions of section 153C as applicable on the date of search were to be applied to proceedings initiated therein. Accordingly, in the instant case it was to be considered as to whether document found from the premises of 3rd party belonged to assessee as provided under section 153C prior to the amendment therein effective from 1-6-2015. In the documents the word 'belong' used in section 153C requires that there has to be control and possession of assessee (person other than searched person) on such document even though assessee is not legal owner. In the documents seized there was no name, address, phone numbers, PAN, banking details or any other specific detail related to assessee was mentioned neither assessee nor persons closely connected with him were having any dealing of whatsoever with searched person. Accordingly documents seized from the premises of search party did not belong to assessee and, therefore, poceedings under section 153C could not be initiated.
Supported by:Pepsico India Holding (P.) Ltd. v. ACIT (2014) 370 ITR 295 (Del) : 2014 TaxPub(DT) 3925 (Del-HC) and Pr. CIT v. Himanshu Chandulal Patel (2019) 109 Taxmann.com 202 (Guj) : 2019 TaxPub(DT) 5203 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
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