Sejal Jewellary & Anr. Vs Union of India & Ors. (Bombay High Court)
Bombay High Court held that once search action u/s. 132 of the Income Tax Act is the foundation of the case, assessment could be initiated only under section 153A/ 153C. Thus, initiation of reassessment proceedings u/s. 147 is liable to be quashed.
Facts- The question which falls for consideration is whether in the facts and circumstances of the case, respondent 3 was correct in law in issuing a notice to the petitioner under Section 148 of the Income-tax Act, 1961 on the basis of a search action under section 132 of the I.T. Act, which is relevant to the entire group of these petitioners. The assessment years in question in all these cases are A.Y. 2012-13.
Conclusion- Held that the foundation of the present case was certainly a search action which was undertaken by the Revenue against one Shilpi Jewellers Ltd. and in such search and seizure action, materials were seized and such materials were further explored and enquired. Such enquiry revealed significant information in regard to M/s. Green Valley Gems Pvt. Ltd., which according to the Revenue had provided accommodation entries to the petitioner, in which it was also revealed that Green Valley Gems Pvt. Ltd. was a shell company. We do not find that the record would indicate something which is not on the basis of such new materials gathered under the search and seizure action under Section 132. If this be the case, then certainly the provisions of Section 153C read with Section 153A would be applicable.
