2024 (7) TMI 1698

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....Ms. Nupur Sharma, Mr. Manav Goyal, Mr. Gaurav Singh, Ms. Divya Verma, Mr. Atul Sharma & Mr. Bhanukaran Singh Jodha, Advs. ORDER PER 1. These writ petitions have been preferred against the impugned notices dated 20 February 2024 issued under Section 153C of the Income Tax Act, 1961 ["Act"] for Assessment Year ["AY"] 2019-20 [W.P. (C) 3955/2024], 2017-18 [W.P. (C) 3957/2024], 2016-17 [W.P. (C) 3965/2024], 2018-19 [W.P. (C) 3966/2024] and 2020-21 [W.P. (C) 3967/2024] and all consequential proceedings. 2. Bearing in mind the undisputed fact that the Satisfaction Notes dated 19 February 2024 issued by the Assessing Officer ["AO"] of the petitioner relates to incriminating material for AYs 2010-11, 2011-12, 2014-15 and 2015-16, it is ex ....

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....in light of the discernibly distinguishable statutory regime underlying Sections 153A and 153C as explained above. While in the case of the former, a notice would inevitably be issued the moment a search is undertaken or documents requisitioned, whereas in the case of the latter, the proceedings would be liable to be commenced only upon the AO having formed the opinion that the material gathered is likely to inculpate the assessee. While in the case of a Section 153A assessment, the issue of whether additions are liable to be made based upon the material recovered is an aspect which would merit consideration in the course of the assessment proceedings, under Section 153C, the AO would have to be prima facie satisfied that the documents, dat....

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.... aforesaid, we come to the firm conclusion that the "incriminating material" which is spoken of would have to be identified with respect to the AY to which it relates or may be likely to impact before the initiation of proceedings under Section 153C of the Act. A material, document or asset recovered in the course of a search or on the basis of a requisition made would justify abatement of only those pending assessments or reopening of such concluded assessments to which alone it relates or is likely to have a bearing on the estimation of income. The mere existence of a power to assess or reassess the six AYs' immediately preceding the AY corresponding to the year of search or the "relevant assessment year" would not justify a sweeping ....