2026 (3) TMI 322

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....f hearing, ld. AR of the assessee submitted that a search was conducted in the Alankit Group of cases on 18.10.2019 and he brought to our notice page 101 of the paper book wherein AO of the assessee recorded the satisfaction on 10.05.2022 by relying on the decision in the case of Shri Harigovind vs. ACIT in W.P. Nos.23019/2023 order dated 28.10.2025 Hon'ble Madras High Court followed the decision of Jasjit Singh and held that additions beyond 6 years and before the end of the 10th year the undisclosed income in the form of assets should be more than Rs. 50 lakhs, then assessment under section 153C of the Income-tax Act, 1961 (for short 'the Act') can be initiated. In this case, ld. AR of the assessee submitted a chart indicating that the sa....

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....he assessment u/s 153A in the given case is beyond the jurisdiction. In this regard, he relied on the decision of Hon'ble Delhi High Court in Akshat Mittal vs. ITO in WP (C) 2329 (2024) order dated 28.05.2024 and the relevant decision is kept on record at page 34 of the case law paper book. 4. On the other hand, ld. DR of the Revenue relied on the findings of the lower authorities. 5. Considered the rival submissions and material placed on record. We observed that the AO of the assessee recorded the satisfaction based on the satisfaction recorded by the searched person only on 10.05.2022. Based on the above facts on record, the searched assessment year for the assessee is AY 2023-24. As per the Fourth Proviso to section 153A, AO can p....

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....tal income which may have escaped assessment. Since the computation and assessment of income that is likely to have escaped assessment would at this stage be provisional, it would be incorrect to strike down initiation of action on a mere ex facie examination of the Satisfaction Note. We also in this regard bear in mind the Fourth Proviso using the expression "amounts to or is likely to amount". The usage of the phrase "likely to" is indicative of the Legislature being conscious of the provisional character of the opinion that the AO may have formed at that stage. H. However, and at the same time, even if the identified asset at that stage be quantified as less than INR 50 lakhs, the AO must for reasons to be duly recorded, be of t....