Question And Answer
Subject: Jurisdiction of sec 153C
Querist: B Sunil Kumar
Answered by:
Tags: ,
Date: November 1, 2021
Query asked by B Sunil Kumar

Panchanamma and other related documents like seizure, inventory in the name of the assessee. Is AO correct if he invokes 153C when separate oath statement has been taken at the time of search seeking all clarifications about records and documents found in the name of the assessee himself

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Answer given by

Issue of notice u/s 153C cannot be challenged . In CIT v. Vijaybhai N. Chandrani (2013) 357 ITR 713/217 Taxman 138/91 DTR 202/261 CTR 225 (SC) the Honourable Supreme Court held that Show-cause notices issued u/s. 153C the assessee should file appropriate reply to said notices and cannot file writ petition.
In CIT v. Sinhgad Technical Education Society (2017) 397 ITR 344/156 DTR 161/297 CTR 441/250 Taxman 225 (SC) the Court held that the seized documents must have co-relation, document wise, with assessment year and money bullion or jewellery or other valuable articles or things etc. requisitioned belong to other person. Assessment was held to be bad in law.
It may be desirable for the assessee to file the return under protest and if the assessee is able to demonstrate that no incriminating material was found against the assessee, the entire addition will be held to be bad in law .

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