No assessment u/s 147 (of Income Tax Act, 1961) can be made in search cases except u/s 153A (of Income Tax Act, 1961) and/or 153C.

Facts in Brief:

1. Search was conducted at assessee’s premises.

2. Notice under section 153C (of Income Tax Act, 1961) was initiated for six preceding previous years.

3. Notice under section 142(1) (of Income Tax Act, 1961) & 142(1) was issued for respective assessment years only, not under section 153C (of Income Tax Act, 1961).

4. AO proceeded to make the assessment under section 148 (of Income Tax Act, 1961), when the assessee raised objection on legal issue that notice under section 148 (of Income Tax Act, 1961) is bad in law.

5. On appeal CIT(A) rejected it.

On appeal ITAT held,

6. The issue in the present case is covered by the decision of the ITAT, Ahmedabad Bench in the case of Meghmani Organics Ltd. Vs. DCIT and no notice under section148 (of Income Tax Act, 1961) and no assessment under section 147 (of Income Tax Act, 1961) can be made in the search cases except under section 153A (of Income Tax Act, 1961) and/or 153C of the Act .

7. The issue is also covered by the decision of the Special Bench of the Tribunal in the case of Al-Cargo Global Logistics Ltd.. Also the assessment is time barred as argued by the ld.counsel for the assessment, and the assessment should have been completed by 31.12.2011, whereas in the present case, it has been completed on 25.3.2013.

8. Accordingly, on both the counts, the assessment is liable to be quashed, and it is ordered accordingly.

9. Thus, the order of the ld.CIT(A) is reversed and all the grounds of the appeal are allowed.

10. In the result, appeal of the assessee is allowed.

News Reference: Income Tax Appellate Tribunal - Ahmedabad Texworld Fashions Pvt. Ltd., ... vs Assessee