2026 (4) TMI 551

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....Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 27-03-2023 by the Assessing Officer, DCIT, Central Circle-5, New Delhi (hereinafter referred to as 'ld. AO'). 2. One of the ground raised by the Assessee is challenging the assumption of jurisdiction under section 153C of the Act for the year under consideration to be flawed as the same would be barred by limitation. This goes to the root of the matter and hence we deem it fit to take up the same first for adjudication. 3. We have heard the rival submissions and perused the materials available on record. Shri Kshitij Lal was searched under Section 132 of the Act on 12-3-2019, which falls in assessment year 2019-20. During the course of his search, some documents relatin....

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....e Assessee. In order to extend the initiation of proceedings under Section 153C of the Act beyond the block period of six years, the legislature had indeed provided fourth proviso to Section 153A(1) of the Act which covers relevant assessment years and which reads as under:- Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for relevant assessment year or years unless- (a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the re....

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....tly placed by the learned AR on the decision of Hon'ble Jurisdictional Delhi High Court in the case of Smart Chip Private Limited vs ACIT reported in 476 ITR 389 (Del) wherein it was held that where search was conducted in case of assessee in financial year 2022-23, relevant block of six assessment years would be six assessment years preceding assessment year 2023-24 and thus assessment year 2016-17 would fall beyond block of six years and accordingly notice issued under Section 148 on 21-3-2024 was barred by limitation. The aforesaid principle was also laid down by the Hon'ble Jurisdictional Delhi High Court in the case of PCIT vs Ojjus Medicare Private Limited reported in 161 taxmann.com 160 (Del HC). 6. Hence, in view of the aforesaid....