INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Validity - Premises of the assessee have been searched by the department under warrant issued in the name of his brother---Unaccounted cash and jewellery were found and seized which was claimed to be belonged to assessee

Search was conducted at residential premises of assessee. On the basis of warrant issued in case of one 'G' being brother of assessee. In this residential premise assessee stayed along with several other family members, as it is a common residence for 19 members of family of one 'P'. During the course of search cash of Rs. 14,80,000 was seized apart from jewellery weighing about 1,970 grams. Apart from these valuables, there were no other documents or books of accounts that were seized during the course of search. After completion of the search. AO issued notice under section 153C. Assessee raised objection to issuance of notice under section 153C on the ground that section 153C was applicable only when there was a search in case of third person and in the course of search, certain papers/documents were found and AO of such other persons was satisfied with that such papers etc. were incriminating further that papers etc. were belonging to person other than searched person.Held: Section 153C get attracted as premises of the assesse had been searched by the department under warrant issued in the name of his brother. Further, unaccounted cash and jewellery were found and seized which was claimed to be belonged to assessee and once some material was found belonging to assessee having bearing on assessment of income AO had no choice but duty bound to issue notice under section 153C.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2013-14 to 2015-16

INCOME TAX ACT, 1961

Section 153C

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