2026 (1) TMI 746

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....ting the penalty order dated 30.06.2023 passed u/s 271(1)(c) of the Income-tax Act, 1961 (for short 'the Act'). 2. Since the issues are common and the appeals are connected, hence the same are heard together and are being disposed off by this common order. First we take up the Revenue's appeal in quantum addition. 3. Brief facts of the case are, in this case a search u/s 132 of the Act was conducted in the case of Rakesh Jain Group on 02.11.2017 which included the premises of Prahlad Kumar Aggarwal. During the course of assessment proceedings u/s 153A in the case of Prahlad Kumar Aggarwal and on perusal of seized data/documents in the case of Rakesh Jain Group of cases, certain documents were found pertaining to M/s Somani Worsted Lim....

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....e facts and circumstances, A.Y. 2011-12 being unabated year, hence in the absence of any incriminating material found/seized during the course of search of a third party, the addition of Rs. 1,03,45,883 u/s 60 for bank credits and Rs. 17,648/- is outside the scope of proceedings u/s.153C. 5. Before the ld. CIT(A), assessee filed detailed submissions on the legal issue raised in the additional grounds and relied on the decision of Hon'ble Supreme Court in the case of CIT vs. Jasjit Singh (2023) 155 taxmann.com 155 and Hon'ble Delhi High Court in the case of PCIT vs. Ojjus Medicare (P.) Ltd. (2024) 161 taxmann.com 160 (Delhi). Ld. CIT(A), after going through the detailed submissions of the assessee and relying on the aforesaid decisions, h....

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....e assessment year 2011-12 under consideration clearly falls outside the scope of application of section 153C of the Act, for the reason that the date of search for the unsearched parties are the date on which the documents were handed over to the Assessing Officer of such other person or from the date on which the satisfaction was recorded. Therefore, the contention of the assessee is found to be correct on this count. Further we observe that the impugned assessment order is beyond the limitation prescribed under section 153C of the Act, and therefore, the jurisdiction assumed by the Assessing Officer is not tenable in the light of aforesaid legal positions in view of the decision of Hon'ble Supreme Court in the case of CIT vs. Jasjit Singh....