TaxTMI 
TaxTMI 
2025 (3) TMI 1635
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.... Ld. 'FAA') in Appeal No : CIT(A)-IV/11778/DCIT-CC/Noida/2016-17/918 arising out of the order dated 18.03.2016 u/s 143(3)/153C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the DCIT,CC, Noida for AY: 2011-12. 2. On hearing both the sides we find that assessee has raised additional grounds by application dated 27.11.2025 and of the two assessee presses only additional ground no. 1, for convenience we reproduced the same: "Additional Ground No. 1 That the assessment order passed by learned assessing officer is without jurisdiction and void - ab - initio and is liable to be quashed, as proceedings initiated under section 153C of the Act are without satisfying the statutory pre - conditions envisaged u....
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....ion actually is to be made and otherwise the satisfaction note gives that complete background of the search and seizure operation and details of the disputed investment which were reflected in the incriminating material. 5. After taking into consideration the matter on record we find that allegations against the assessee are that the incriminating documents reflected information of on money paid for purchase of land. Now one thing which is coming up on bare perusal of the satisfaction note available at page 4 of the paper book that the AO records of need for 'deep scrutiny' and that the initiation of proceedings u/s 153C of the Act is 'for provide deep investigation and to plug the leaked revenue'. 6. Nowhere in a satisfaction note th....
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....r to have proceeded on the premise that the moment incriminating material is unearthed in respect of a particular AY, they would have the jurisdiction and authority to invoke Section 153C in respect of all the assessment years which could otherwise form part of the "relevant assessment year" as defined in Section 153A. In our considered opinion, the aforesaid understanding of Section 153C is clearly erroneous and unsustainable. As explained hereinabove, the discovery of material likely to implicate the assessee and impact the assessment of total income for a particular AY is not intended to set off a chain reaction or have a waterfall effect on all AYs' which could form part of the "relevant assessment year". This, more so since none of....
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....uments 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, data or asset recovered is likely to "have a bearing on the determination of the total income". It is only once an opinion in that regard is formed that the AO would be legally justified in issuing a notice under that provision....
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.... 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 or indiscriminate invocation of Section 153C. 68. The jurisdictional AO would have to firstly be satisfied that the material received is likely to have a bearing on or impact the total income of years or years which may f....