DCIT Vs Sh. Kailash Chand Hirawat (ITAT Jaipur)
In the case of DCIT vs. Kailash Chand Hirawat, ITAT Jaipur upheld that when incriminating material related to an assessee is found during a third-party search under Section 132, the department must proceed under Section 153C rather than Sections 147/148. The case involved a reassessment for AY 2011-12 based on seized documents from a search on the Ramesh Manihar Group, leading to additions of ₹3.61 crore and ₹17.93 lakh. The CIT(A) set aside the reassessment order, citing a Rajasthan High Court ruling in Shyam Sunder Khandelwal v. ACIT, which emphasized that proceedings under Section 148 cannot override the specific provisions of Section 153C for third-party cases. ITAT Jaipur dismissed the department’s appeal as infructuous since the department subsequently issued a Section 153C notice, thereby complying with the High Court’s decision.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
Department-appellant is in appeal against order dated 18.07.2024, passed by Learned CIT(A), u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).
Impugned Order
Vide impugned order, Learned CIT(A) has allowed the appeal filed by the assessee thereby setting aside the assessment order dated 08.12.2018, relating to the assessment year 2011-12, and passed u/s 147 r.w.s. 143(3) of the Act.
