Constructive possession must be attributed of incriminating material seized from personal assistant of Assesses: High Court of Madras.

According to the facts of this case, M/S S.R. Trust is a public charitable trust and is enjoying exemption under the Income Tax Act, 1961. It is running a hospital in the name and style of “Meenakshi Mission Hospital and Research Centre” at Madurai. The trust and Dr. S. Gurushankar, according to the case, would be considered as the assessee coming within the jurisdiction of the Assistant Commissioner of Income Tax who is the respondent here. The AO conducted the search though which some incriminating material was collected. The Assessing founder was satisfied with the proceeding to be under Section 153C of the Act for the AY 2012-13 to AY 2016-17 against the petitioner.

After that, the impugned notices under Section 153A of the Act were issued to Dr. S. Gurushankar, while the impugned noticed under Section 153C of the Act were issued noticed under Section 153C of the Act were issued to M/S SR Trust. The petitioners then invoked the jurisdiction of 226 of Constitution instead of taking part in the assessment proceedings. The writ petition was admitted and interim stay was also granted and for vacating the same, the petitioner was also filed by the assessment authority.

On considering all the facts, the court held that the initiation of the impugned action cannot be said without any ground as it is based on a solid evidence. the court also took the contention of the petitioner into consideration where the submitted that if the jurisdictional fact itself is absent, it cannot be made open to the respondents to initiate proceedings under Section 153A and 153C of the Act. Though the petitioners have alternative remedies available under the statute, when the jurisdictional fact itself is absent, it is certainly open to the assessee to approach the court by filing the writ petitions.  

However, the court mentioned that Only after fully satisfying himself, the assessing officer chose to issue the impugned notices. If the petitioners have nothing to fear, they can as well place all the materials before the assessing authority for consideration. The Court is satisfied with the jurisdictional facts exist for assumption of jurisdiction under Section 153A as well as Section 153C of the Act. It does not find any illegality or infraction of procedure in the action initiated by the respondents. Therefore, the writ petitions lack merit.