On writ allowing the petition the Court held that writ petition was maintainable although the assessee had an alternate remedy because the question raised involved a consideration of violation of principles of natural justice. That as no opportunity was provided to the assessee as required under section 127 of the Act, the transfer of case was not valid. That the action taken by the Department against the assessee based on the material contained in the diaries and loose sheets were contrary to the law. In that view the notices issued under section 153C of the Act, based on the loose sheets and diaries were contrary to law, and set aside. (AY.2012-13 to 2018-19)
Sunil Kumar Sharma v. Dy. CIT (2022) 448 ITR 485 / 220 DTR 241 /(2023) 332 CTR 72 (Karn.)(HC) Kandaswamy Rajendran v. Dy. CIT (2022)448 ITR 485/ 220 DTR 241/ (2023) 332 CTR 72 (Karn.)(HC)
S. 153C : Assessment-Income of any other person-Search-Books of account-Loose sheets and diaries do not Constitute to books of account-Assessment based only on evidence available in loose sheets and diaries-Not valid-Transfer of case-Assessee must be given opportunity to be heard–Existence of alternate remedy-Not an absolute bar on issue of Writ. [S. 132, Indian Evidence Act, 1872, S. 34, Art. 226]