{"id":63806,"date":"2026-08-04T18:49:03","date_gmt":"2026-08-04T13:19:03","guid":{"rendered":"https:\/\/itatonline.org\/digest\/subhash-chander-gupta-v-ito-2025-124-itr-247-chd-trib\/"},"modified":"2026-08-04T18:49:03","modified_gmt":"2026-08-04T13:19:03","slug":"subhash-chander-gupta-v-ito-2025-124-itr-247-chd-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/subhash-chander-gupta-v-ito-2025-124-itr-247-chd-trib\/","title":{"rendered":"Subhash Chander Gupta v. ITO (2025) 124 ITR 247 (Chd.)(Trib.)"},"content":{"rendered":"<p>During a search of a third party, loose papers allegedly relating to the assessee were seized. Instead of invoking section 153C, the Assessing Officer reopened the assessment under sections 147 and 148. The Tribunal held that section 153C, containing a non obstante clause, governed the assessment of third persons where seized material pertaining to them was found. Since the mandatory procedure under section 153C had not been followed, the reassessment was without jurisdiction and liable to be quashed. The addition was based solely on a loose paper found during the search of a third party and the statement of the searched person&#8217;s former accountant. The Tribunal held that the loose paper was neither in the handwriting nor in the possession of the assessee, the accountant&#8217;s statement recorded outside search proceedings carried no statutory presumption of truth, and the accountant was not produced for cross-examination. In the absence of corroborative evidence establishing cash payment to the assessee, the addition was deleted<strong>.<\/strong> The assessee requested that the original return be treated as the return filed in response to notice under section 148. The Tribunal held that once such request was accepted, issuance of notice under section 143(2) became mandatory before framing the reassessment. As no notice under section 143(2) had been issued, the reassessment was invalid<strong>\u00a0 (<\/strong>AY. 2011-12).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 153C: Assessment-Income of any other person-Search-Proceedings under section 153C mandatory-Reassessment under sections 147\/148 invalid-Loose paper found from third party-Statement of accountant not tested by cross-examination-Addition deleted-Return filed in response to notice under section 148-Notice under section 143(2) mandatory-Assessment invalid.[S. 132, 147, 148]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63806","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gB8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63806"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63806\/revisions"}],"predecessor-version":[{"id":63807,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63806\/revisions\/63807"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}