Proceedings u/s 153A are analogous to proceedings under section 147, i.e., reassessment, to the extent that these proceedings are for the benefit of revenue and not that of the assessee
Where assessee had not claimed any depreciation in its original return on taxis owned by him and had also not shown income from business of running taxi on hire, thereafter he was precluded to make fresh claim of depreciation in return filed pursuant to search operation under section 153A, because proceedings under section 153A or 147 are designed to provide benefit to revenue and not to assessees.
Assessee had claimed depreciation in return filed in response to notice under section 153A, i.e., search operation. AO alleged that in the original return filed under section 139(1), assessee had neither shown income from hiring of taxi nor claimed depreciation on taxi, therefore, the depreciation claim could not be allowed because the same was claimed for first time pursuant to notice under section 153A.
It was held that Returns of income filed in response to notice under section 153A are as a consequence of search action taken under section 132 on the assessees.
These proceedings are analogous to proceedings under section 147, i.e., reassessment, to the extent that these proceedings are for the benefit of revenue and not that of the assessee. Therefore, assessee could not be permitted to convert such reassessment proceedings as his appeal or revision in disguise and seek relief in respect of depreciation earlier not claimed in original return of income.7