2026 (2) TMI 380 - SCH - Income Tax

Reopening assessments under Sections 148 and 153C against seized material; SLP dismissed for delay and on merits.

Applicability of reopening under Section 148 versus assessment under Section 153C turns on whether incriminating material used to assess an assessee was ... Reopening of assessment v/s assessment u/s 153C - Applicability of Sections 153C and 148 in case of seizure of material in search or requisition of books-documents relating to assessee other than on whom the search was conducted or requisitioned made - delay of 560 days in filing the Special Leave Petition HC decided [2024 (4) TMI 196 - RAJASTHAN HIGH COURT] language of explanation 2 to new Section 148 is akin to Section 153A and Section 153C. Corollary being that after seizing of operational period of Section 153A to 153D, the cases being dealt thereunder were circumscribed in the scope of newly substituted Section 148. Department has not set up a case that for initiating proceedings under Section 148 it had material other than the material seized during the search of Manihar Group. The contention was that though the material with regard to unaccounted loan advanced by the petitioner was received, the earning of interest on unaccounted loan was derivation of the AO from the material received. The submission is that the derived conclusion cannot be acted upon under Section 153C. The submission lacks merit and shall defeat the concept of single assessment order for each of relevant preceding years for assessing ‘total income’ in case of incriminating material found during search or requisition. HELD THAT:- Delay which has not been satisfactorily explained by the petitioners. Even otherwise, we find no good reason to interfere with the impugned order passed by the High Court. Special Leave Petition is, therefore, dismissed on the ground of delay as well as merits. Outcome: Special Leave Petition dismissed on the ground of delay as well as merits.