31 May 2014
There is search on Mr. A and nothing is found. Because search was initiated, notice u/s 153A of the Act was issued . At the same time, there were search on one of the group concerns - B, where A is the Managing Director.
In the case of B, some material belonging to Mr. A (details of donation paid)are found.
In our opinion they should have initiated proceedings u/s 153C also. However, assessment has been made only u/s 153A.
Kindly guide us whether the Assessing Officer's order u/s 153A without invoking proceedings u/s 153C is valid.
01 June 2014
Sec 153 A talks about assessment of a person for which search is initiated and
Sec 153C says assessment of a person of which any material belongings founds in the search of other person.
If we see wording of Sec. 153C -"where the Assessing Officer is satisfied that any valuable article or documents belongs to a person other than the person referred to in section 153A, then that article documents shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person and issue notice and assess or reassess income of such other person in accordance with the provisions of section 153A.
It means for those belongings which found with some other person assessment can be initiate u/s 153 A itself.
In present case Search was running simultaneously with A & B, so if Assessing officer of B found any material belongings related with A , he will hand over it to Assessing officer of A and now assessing officer of A, will assess his income.
AS here assessment u/s 153 A of A was already running ,assessing officer may consider material belongings which was handed over by B's Assessing officer and can make assessment for both at the same time and under the same order.
CAclubindia
