TaxTMI 
TaxTMI 
2026 (5) TMI 600
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....spectively. The impugned orders for the respective assessment years are of even date i.e. 12.03.2025. Since, the facts germane to the issues stem from the same search, these appeals are taken up together for adjudication and are decided by this common order. 2. For the sake of convenience, appeal of the assessee in ITA No. 3181/Del/2025 for A.Y. 2013-14, is taken up as lead case, hence the facts are narrated from the said appeal. ITA No. 3181/Del/2025; A.Y. 2013-14 3. The assessee in the appeal has raised following grounds of appeals: "1. That the Appellant denies his liability to be assessed at total income of Rs. 46,57,000/- as against the returned income of Rs. 1,68,000/- and accordingly denies his liability to pay tax,....
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....s and findings, without providing the opportunity of cross-examination, and without observing the principle of natural justice, thereby rendering the addition bad in law and liable to be deleted. 6. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest under sections 234A, 234B, 234C and 234D of Income Tax Act, 1961. 7. That the Appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 4. Facts of the case in brief as emanating from the records are: A search and seizure operation u/s 132 of the Inc....
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....rse of search at the place of searched person pertaining to the assessee. She submitted that the Hon'ble Supreme Court of India in the case of Abhisar Buildwell [2023] 454 ITR 212 (SC) has held that in the case of completed/unabated assessment, in the absence of any incriminating material, the Assessing Officer cannot make addition u/s 153C of the Act. The AO can assume jurisdiction u/s 153C of the Act in the year of unabated assessment only where any incriminating material is seized during search. She asserted that, it is evident from assessment order that addition made by the AO is not based on any incriminating material found during the course of search in the case of Navin Mahipal Group. The only documents that were seized pertaining to....
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.... below. We have also considered the decision on which ld. Counsel for the assessee has vehemently placed reliance to buttress her arguments. The assessee in appeal has assailed validity of the assessment order passed u/s 153C r.w.s. 143(3) of the Act. It is an undisputed fact that addition has been made in the hands of the assessee on protective basis consequent to search in the case of Navin Mahipal Group on 16.09.2019. The satisfaction note in case of the assessee was drawn by the AO on 28.09.2021. As per the first proviso to section 153C(1), the date of search in the case of person other than the searched person shall be the date on which books of account or documents or assets seized or requisitioned by the Assessing Officer having juri....
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....rom the records, the date of recording of satisfaction i.e., 28.09.2021 shall be considered as the date of receiving seized material by the AO of the assessee. 8. Section 153C was amended by the Finance Act, 2021 with effect from 01.04.2021 whereby sub-section(3) was inserted. The relevant subsection is reproduced hereinbelow: "(3) Nothing contained in this section shall apply in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A on or after the 1st day of April, 2021." By virtue of above amendment to section 153C, no assessment u/s 153C can be made in the case of other person under section 153C of the Act if the date of search falls beyond 01.0....