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AVNEESH JHINGAN, BHUWAN GOYAL
Shyam Sunder Khandelwal – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
JUDGMENT :
These petitions involve common fact and question of law and are being decided by this order. For convenience, the facts are being taken from the lead case D.B. Civil Writ Petition No.4677/2022.
2. Writ petition is filed challenging the notice issued under Section 148 of the Income Tax Act, 1961 (hereafter 'the Act') and the order dated 05.03.2022 rejecting the objections filed to issuance of notice.
Facts:-
3. The brief facts are that for Assessment Year 2014- 15 the petitioner filed income tax return declaring income of Rs. 18, 76, 890/-. On 30.03.2021 notice was issued under Section 148 of the Act. The petitioner filed return on 07.01.2022 and sought the reasons for initiating the proceedings. On 18.02.2022 the reasons were supplied. The objections filed on 01.03.2022 were rejected on 05.03.2022.
Arguments Of Petitioners:-
4. Learned counsel for petitioner contented that basis of issuance of notice under Section 148 is the material seized during the search conducted on Ramesh Manihar Group (hereafter 'the Manihar Group'), the proceedings should have been initiated under Section 153C of the Act. Decisions of the Karnataka High Court in Sri. Dinakara Suvarna v. Deputy Commissi
The court ruled that proceedings under Section 148 of the Income Tax Act are improper when material seized relates to a person other than the one searched, necessitating the application of Section 15....
Reassessment under sections 147/148 invalid if based on material seized from third-party search prior to 01.04.2021; section 153C mandatory, overriding general provisions.
The court held that in cases of search under Section 132, the provisions of Section 153A apply mandatorily, overriding Section 147 and 148, unless incriminating material is found.
For invoking Section 153C, the petitioner must not be treated as a non-searched person; proper jurisdiction requires a satisfaction note linking seized documents to undisclosed income of another part....
A person may only be assessed under Section 153C of the Income Tax Act if they are not the 'searched person'; procedural safeguards must precede assessment actions.
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