TaxTMI 
TaxTMI 
2015 (8) TMI 462
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....003-04 is barred by limitation and invalid and therefore, the consequent assessment is bad in law." 2.1 Briefly stated, the facts of the case are that a search & seizure operation under section 132 of the Income tax Act, 1961 (in short 'the Act') was conducted at the residential and business premises of the assessee as well as in the case of M/s. Jai Chand Lal Singhi and others (hereinafter referred as Singhi Group) during the period 12.02.2009 to 8.4.2009. During the course of search & seizure operation, certain books of account and other documents were seized. The seized documents included certain documents relating to the assessee. At the time of search, the jurisdiction over the "Singhi Group" as well as the assessee lay with t....
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.... him, the said notice is barred by limitation as per the proviso to section 153C of the Act. In the instant case, the seized documents allegedly belonging to the assessee were handed over to the Assessing Officer of such other person on 5.6.2009. Now, as per the proviso to section 153C of the Act, the date of search is to be substituted by the date of receiving books of account or documents or assets seized. Accordingly, the assessment can be reopened of the preceding six years than 5.6.2009. According to ld counsel for the assessee, in this case, the previous year in which the documents are handed over is 1.4.2009 to 31.3.2010. The assessment year would be assessment year 2010-2011. According to ld counsel for the assessee, the AO has the ....
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....he provisions of s.153 C and proviso thereof which reads as under: "153C. Assessment of income of any other person-(1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other p....
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....requisition is made. Accordingly, the AO can issue notice under S.153A of the Act for six preceding assessment years following prior to the previous year in which search is conducted. In the present case, search in the csse of Shri Subody Sanghvi was conducted on 20th De.2004, then, in this case, the AO is empowered to initiate the proceedings for assessment/reassessment for the assessment years 2004-05, 2003-04, 2002-03, 2001-02, 2000-2001 and 1999-2000. It is because the assessment year relevant to previous year in which search took place is assessment year 2005-06 (previous year 2004-05). But when we apply proviso to section 153C of the Act, then date of search is substituted by date of handing over of the documents by the AO of the pers....