TaxTMI 
TaxTMI 
2025 (12) TMI 27
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....und and quash the assessment and accordingly deleted the addition by passing a reasoned order which may be upheld. 3. On the other hand, ld. DR of the Revenue submitted that ld. CIT(A) was not justified in holding that block periods for assessment u/s 153C have to be calculated from the date of receipt of the books of accounts, documents or assets seized, by the jurisdictional AO of the non-searched person and not from the date of initiation of search by relying on First Proviso to Section 153C, even when this Proviso specifically deals only with the abatement of proceedings (as referred to second proviso of Section 153A) and does not deal with the calculation of block periods. He further submitted that the ld. CIT(A) was not justified in quashing the assessment order u/s 153C on the grounds that the amended provision w.e.f. 01.04.2017 are not relevant in this case when the satisfaction was recorded on 20.09.2018 and by the time the amendment to the section 153 C was already into effect (01.04.2017), which clarified that the relevant assessment years have to be calculated according to the date of search. Further he submitted that the Ld. CITCA) was not justified in holding that ....
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....u/s 132 of the I T Act, was carried out on Ashish Begwani Group on 22.10.2016. During the course of search various documents related to 'accommodation entry' were seized. From the assessment order, it was observed that the satisfaction in terms of section 153C was recorded on 20.09.2018 by the Assessing Officer of searched party and on 20.09.2018 by the Assessing Officer of appellant and notice u/s 153C was issued on 24.09.2018. However, the Assessing Officer observed "Further, consequent to search action u/s 132 in Ashish Begwani Group on 22.10.2016, as per provisions of section 153C of the Act, satisfaction by the AO of the searched person (Ashish Begwani) was recorded on 20.09.2018 and seized material was handed over to the AO of M/s Visionary Infraprojects Private Limited, the assessee. After perusing the information mail able on record and documents/ Information received from the AO of searched person, satisfaction was recorded on 20.09.2018 on part of the AO of M/s Visionary Infraprojects Private Limited (the assessee). Thereafter, notice under section 153C of the Act, was issued on 24.09,2018 and was duly served." 4.1.3 The Appellant submitted that the period of six....
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....ssess the income of such other person in the, manner contemplated by the provisions of Section 153A. Now a question may arise as to the applicability of the second proviso to Section 153A in the case of the other person, in order to examine the question of pending proceedings which have to abate. In the case of the searched person, the date with reference to which the proceedings for assessment or reassessment of any assessment year within the period of the six assessment years shall abate, is the date of initiation, of the search under Section 132 or the requisition under Section 132A. For instance, in the present case, with reference to the Puri Group of Companies, such date will he 5.1.2009. However, in the case of the other person, which in the present case is the petitioner herein, such date will be the date, of receiving the books of account or documents or assets seized or requisition by the Assessing Officer hewing jurisdiction over such other person. In the case of the other person, the question of pendency and abatement of the proceedings of assessment or reassessment to the six assessment years will be examined with reference to such date. " 9. It is evident on ....
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....ference to the date of search would have to be construed as the reference, to the date of recording of satisfaction. Il would follow that the six assessment years for which assessments/reassessments could be made under Section I53C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the AO of the Assessee. In this case, it would be the date of the recording of satisfaction under Section 153C of the Act, i.e., 8th September, 2010. In this view, the assessments made in respect of assessment years 2003-04 and 2004-03 would be beyond the period of six assessment years as reckoned with reference to the date of recording of satisfaction by the AO of the searched person. 11 is contended by the Revenue that the relevant six assessment years would be the assessment years prior to the assessment year relevant, to the previous year in which the search was conducted. If this interpretation as canvassed by the Revenue is accepted, it would mean that whereas in case of a person searched, assessments in relation to six previous years preceding the year in which the search takes place can be reopened hut in case of any other person, who is n....