TaxTMI 
TaxTMI 
2026 (6) TMI 1395
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.... 1. "That on the facts and circumstances of the case and in law, the notice u/s 153C dated 14.10.2022 issued by Asst. Commissioner of Income Tax, Circle -22 (2) under Section 153C (1) of the Income-tax Act, 1961 ("the Act") is void ab initio and without jurisdiction. as per the first proviso to Section 153C (1), the date of initiation of search is to be reckoned as 11.10.2022, being the date of recording of the satisfaction note. Accordingly, the impugned notice is invalid in law in view of the ratio laid down in PCIT vs. Ojjus Medicare (P.) Ltd. 2. "That on the facts and circumstances of the case and in law, the issuance of the impugned notice dated 14.10.2022 is in gross violation of Section 153C (3) of the Act. The said provision is rendered inapplicable to searches initiated on or after 01.04.2021, when read in conjunction with the first proviso to Section 153C (1) of the Act. Reliance is placed on Harigovind v. ACIT and Shanmugasundaram Manoharan v. DCIT. 3. "That on the facts and circumstances of the case and in law, Section 153C of the Act, being a machinery provision, must be interpreted in a manner that effectuates the object and purpose of the statu....
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.... Section 153C of the Income-tax Act, 1961. It is a settled legal position that where the date of handing over of seized material to the Assessing Officer (AO) of such other person is either not specified or not ascertainable from the record, the date of recording of satisfaction assumes determinative significance for the purpose of assumption of jurisdiction. This position stands affirmed by the judgment in PCIT v. Ojjus Medicare Pvt. Ltd.(465 ITR 101, Delhi), wherein it has been categorically held that, in proceedings under Section 153C against an "other person," the relevant date for assumption of jurisdiction is the date of recording of the Satisfaction Note in the case of such other person, and not the date of search in the case of the searched person. Accordingly, in the facts of the present case, since the date of transfer of material to the AO of the assessee is neither available nor discernible from the record, the date of recording of satisfaction, i.e., 11.10.2022, is liable to be treated as the effective and relevant date for initiation of proceedings and is the legally relevant date for examining jurisdiction. However, by virtue of the Finance....
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....een undertaken in accordance with the amended reassessment provisions. Accordingly, applying the settled legal position, where the Satisfaction Note is recorded on or after 01.04.2021, the amended statutory regime would govern the field. In the present case, in the absence of compliance with the jurisdictional requirements prescribed under the amended provisions, the assumption of jurisdiction under Section 153C is void ab initio, and consequently, the entire proceedings and additions made thereunder are liable to be quashed. It is further submitted that this precise legal contention has already been examined and adjudicated upon by the Hon'ble Bench in another case namely, Shri Lekhraj. In that case as well, proceedings under Section 153C were initiated on the basis of a Satisfaction Note recorded after 01.04.2021. The Hon'ble Bench, after considering the legal position in detail, held that recourse to the unamended provisions was impermissible. While arriving at the said conclusion, the Hon'ble Bench placed reliance on its earlier decision in the case of Geetanjali Bahayana (supra), wherein it was categorically held that once the amended provisions have....
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....ion of search or a requisition made to date of receipt of books of account or documents and assets seized by jurisdictional Assessing Officer of non-searched person - Held, yes" 11. Respectfully following the aforesaid decisions, we are inclined to uphold that any addition or proceedings for AY 2015-16 and 2016-17 are beyond jurisdiction and accordingly all the impugned assessment orders are quashed. Hence, the additional grounds raised by the assessee are allowed. 12. In the result, the appeals for AYs 2015-16 and 2016-17 are allowed. 13. With regard to AY 2017-18, brief facts of the case are, a search and seizure operation u/s 132 of the Act was carried out in the case of Alankit Group, Shri Alok K Agarwal and his son, Ankit Agarwal and some of its close associates and key employees of Alok K Agarwal on 18.10.2019. During the course of search certain documents pertaining to the assessee were found and seized. Accordingly, assessment proceedings u/s 153C of the Act for A.Y. 2017-18were initiated in the case of the assessee. Notice u/s 153C dated 14.10.2022 was issued to the assessee. The AO vide assessment order dated 18.03.2024 passed u/s 153C of the Act made addition of....
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..... DR of the Revenue objected to the submissions of the assessee and relied on the orders of the authorities below. 19. Considered the rival submissions and material placed on record. 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 Alankit Group on 18.10.2019. The satisfaction note in case of the assessee was drawn by the AO on 11.10.2022. 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 jurisdiction over such other person are received by the AO of other person. Thus, in the case of a person other than the searched person, the relevant date would be the date on which relevant documents or seized material is received by the AO of the person other than the searched person. 20. We are of the considered view that in absence of specific date of handing over the seized material to AO of the assesse....