TaxTMI 
TaxTMI 
2026 (5) TMI 398
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....venue has raised the following grounds in appeal: 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in delivering internally inconsistent and contradictory findings, having accepted the Revenue's position that the block under sections 153A and 153C is to be computed from the date of search, but nevertheless allowing the assessee's claim by relying on judgement of Hon'ble Supreme Court's in the case of Jasjit Singh and order of Hon'ble Delhi High court in the case of PCIT Vs Ojjus Medicare Private Limited and thereby rendering the order unsustainable. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in failing to appreciate that even if the assessee's interpretation is adopted and the date of handover of seized documents (i.e., 13.05.2021) is taken as the commencement point, AY 2012-13 clearly falls within the ten-year block prescribed in the first proviso to section 153C; hence, the finding that the assessment is time- barred is factually incorrect and legally untenable. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in mechanically applying the decision of Hon'ble ....
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....ly inserted feeding pipe. The Assessing Officer completed the reassessment on protective basis at taxable income of Rs. 6,17,30,550/- by making an addition of Rs. 6,00,00,000 to the returned income in respect of amount received as refund of advance from Duggal Pvt. Ltd., a company belonging to Shri Gurvinder Singh Duggal assessed with same Assessing Officer and in whose hands this sum had been added on substantive basis. Subsequently, the Assessing Officer Central Circle 6 initiated proceedings under section 153C vide notice dated 15.05.2021 though the source of all deposits were duly explained and verified by AO before passing the Assessment Order u/s 147/148. In the meanwhile, before submitting any response the assessee expired on 30 May 2021 due to COVID. Mr. Manoj Malik, the son of assesses was registered as legal heir of assesses who submitted the response to the notice and later e-filed the return of assessee on 20.01.2022. All the details desired by the AO during the course of assessment proceedings were submitted from time to time. A show cause notice dated 17.12.2022 (Saturday Night) was issued to submit response by 20.12.2022 (Tuesday 11.00 A.M.) inter-alia including as t....
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....eipt of books, documents, or assets by the jurisdictional AO of the non- searched person. Accordingly, the appellant is of the view that since in the instant case the seized records were handed over to the AO of non-searched person in FY- 2021-22, i.e., AY-2022-23, the block period for proceeding under Section 153C. Consequently, it is argued by the appellant that the proceeding- initiated u/s 153C of the IT Act, 1961 for AY- 2012-13 is barred by limitation. 5.1.4 In this context, an examination of bare provisions of section 153C of the IT Act, 1961 read with Section 153A of the income tax Act, 1961 clearly demonstrates that the commencement point for the purpose of computation of the six- and ten-year block for assessment u/s 153C has to be reckoned from the "date of search" and not from "when documents are either handed over to a jurisdictional AO" or "when the Satisfaction Note in respect of a non-searched person is drawn". It has been the consistent and unaltered stand of the Revenue that computation of the block for proceeding u/s 153C should be reckoned from date of search, and, that the block of six-years for proceeding u/s 153A and u/s 153C are intended to be one a....
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....s issued by the Assessing Officer, and provisions of the said Act shall apply accordingly, 80.2 In view of the various representations received from stakeholders, section 197 of the Finance Act, 2016 has been amended so as to omit clause (c) of the said section, 80.3 Applicability: This amendment takes effect retrospectively from 1st June, 2016. 80.4 However, in order to protect the interest of the revenue in cases where tangible evidence(s) are found during a search or seizure operation (deluding section 132A cases) and the same is represented in the farm of undisclosed investment in any asset, section 153A of the Income-tax Act relating to search assessments has been amended to provide that notice under the said section can be issued for an assessment year or years beyond the sixth assessment year already provided up to the tenth assessment year if- (i) the Assessing Officer has in his possession books of accounts or other documents or evidence which reveal that the income which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in one year or in aggregate in the relevant four assessment years (falling beyond ....
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.... take cognizance of the binding judgement of jurisdictional High Court delivered in the cases of PCIT v. Ojjus Medicare Pvt Ltd & Ors (Delhi)(HC). Commissioner of Income Tax rendered after the contextual examination of amendments introduced vide Finance Act, 2017 wherein it's been held that the commencement point for initiation of proceeding- under Section 153C of the IT Act,1961 is to be taken from the date on which seized records are actually handed over to the AO of non-searched person. The relevant extract of Hon'ble Delhi High Court's latest judgement dated 03.04.2024 in the case of PCIT Vs Ojjus Medicare Private Limited is also reproduced below for ready reference: "C. Section 153C. on the other hand, pertains to the non-searched entity and in respect of whom any material, books of accounts or documents may have been seized and were found to belong to or pertain to a person other than the searched person. As in the case of Section 153A, Section 153C was also to apply to all searches that may have been undertaken between the period 01 June 2003 to 31 March 2021. In terms of that provision, the. AO stands similarly empowered to undertake and initiate an assessment in r....