The Assessee contended that since the seized material “belonged/related” to the Assessee but was found during a search on another person, the correct route was Sec. 153C leading to Sec. 153A, and therefore the Sec. 148 notices and orders rejecting objections were invalid. The Revenue pursued reassessment under S. 148 notwithstanding that the trigger was seized material relatable to a person other than the person searched.

The Hon’ble Rajasthan High Court set aside/quashed the S. 148 notices and the orders rejecting objections, holding that S. 153A, 153D prevail and that S. 153C, not Sec. 148, must be used where material relates to an “other person”. The Hon’ble SC dismissed SLPs on the grounds of delay as well as on merits.  (AY. 2014-15)