TaxTMI 
TaxTMI 
2026 (3) TMI 1738
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..../2025 for assessment year 2021-22 is a separate appeal raising grounds on merit of the addition. 3. During the course of hearing, Ld. AR raised certain additional grounds of appeal along with prayer under Rule 11 of the Income Tax Appellate Tribunal Rules, 1963. The additional ground of appeal taken reads as under :- 'The assessing officer erred in completing the assessment u/s. 153C. I. In as much as the appellant's records were notified to the appellant's Assessing Officer only on 24/02/2023, the date of initiation of search on the appellant is 24/02/2023 only; this being a date beyond 01/04/2021 it is submitted that provisions of section 153C would not apply and thus impugned notice u/s 153C is to be quashed. The appellant relies on the decisions of the jurisdictional court / tribunal in the following cases: (A) HARIGOVIND v. ACIT [2025] 180 Taxmann.Com 197 (Madras)/[2026] 308 Taxman 188 (Madras) [28-10-2025] (B) Shanmugasundaram Manoharan V. DCIT ITA in 1607,1608,1609/CHNY/2025 dt. 09.12.2025 (reliance placed by Hon'ble ITAT on Madras High Court decision stated above) (C) Sitaram Jewellers v. DCIT - [ITA 9....
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....oner of Income-tax, Salem v. S. Khader Khan Son [2012] 25 taxmann.com 413 (SC) affirming the Order in the case of CIT v. S. Khadar Khan Son [2008] 300 ITR 157(Mad. HC) wherein it was held "Whether Section 133A does not empower any ITO to examine any person on oath, so statement recorded under section 133A has no evidentiary value and any admission made during such statement cannot be made basis of addition". (c) The appellant also relies on the circular of the Central Board of Direct Taxes dated March 10, 2003, with regard to the confession of additional income during the course of search and seizure and survey operations. The said circular dated March 10, 2003, reads as follows: "Instances have come to the notice of the Beard where assessee have claimed that they have been forced to confess the undisclosed income during the course of the search and seizure and survey operations. Such confessions, if not based upon credible evidence, are later retracted by the concerned assessee while filing returns of income. In these circumstances, on confessions during the course of search and seizure and survey operations do not serve any useful purpose. It is, theref....
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....that proceedings u/s 153C of the Act were initiated in the case of the assessee on the basis of the documents found and seized during the course of search on third person. Ld. AR further submits that based on the search on 10.11.2020 in the case of M/s Mohanlal Jewellers Chennai (P) Ltd, Shri Suresh Kumar Khatri and others certain incriminating material were found, which have bearing on the determination of the total income of the assessee. Accordingly, proceedings u/s 153C were initiated in the case of the assessee and additions were made. Ld.AR submits that from 01.04.2021, law has been amended and as per the order of Hon'ble Jurisdictional High Court in the case of PCIT Vs. Ojjus Medicare Pvt. Ltd. reported in (2024) 465 ITR 101(Delhi), the date of search should be the date when the AO of the assessee has recorded his satisfaction which in the present case is 07.03.2023. However, since the law has been amended w.e.f. 01.04.2021, according to which no proceedings could be initiated u/s 153C of the Act for the searches conducted on or after 01.04.2021 and thus provisions of section 153C of the Act could not be applied and the AO should have initiated the proceedings u/s 148 of....
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....ous year in which search is conducted or requisition is made and] for the relevant assessment year or years referred to in subsection (1) of section 153A Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to sub-section (1) of section153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person: Provided further that the Central Government may by rules made by it and published in the Official Gazette, specify the class or classes of cases in respect of such other person, in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years as referred to in sub-section (1) of section 153A except in cases where any assessment or reassessment has abated. (2) Where book....
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....ntly recognized to also embody commencement point for reckoning six or ten assessment years', shifts relevant date from date of initiation 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 Whether furthermore where date of handing over of documents was not available, date of issuance of satisfaction Note by Assessing Officer under section 153C would be pertinent for purpose of First Proviso to section153C - Held, yes - Whether significant difference between computation of relevant assessment year for identification of six assessment years and to construct a block often assessment years is that while six assessment years' hinge upon phrase "immediately preceding" assessment year pertaining to search year, ten assessment years' are liable to be computed orreckoned from end of assessment year relevant to year of search - Held, yes - Whether thus, in instant case where satisfaction note were issued between 1-4-2021 and 31-3-2022, relevant assessment year would be 2022-23 and assessment years' 2010-11, 2011-12 and 2012-13 would clearly fall ....
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....ar or years, referred in sub Section (1) of Section 153C of the Act. 39. As far as the other person is concerned, the six years period would be calculated, the date on which the requisition was made and that would be the date, for the purpose of determination of assessment of income. On the other hand, as far as the searched person is concerned, this 6 years period would vary and the same would be calculated from the date of search made in the premises of searched person. Therefore, for the purpose of initiation and determination of income for 6 assessment years, two different dates have been fixed by the Statute, i.e., for the searched person, it was taken the date of search, whereas, for the other person, it was taken the date, on which the requisition is made to the JAO of the other person. 40. Thus, as far as the searched person is concerned, the date of initiation of search is the date, on which the search was conducted in his premises. The said date would be the date of initiation of search for searched person for all purposes. As far as the other person is concerned, the date of initiation of search would be the date, on which the materials, books of accoun....
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.... case of M/s Mohanlal Jewellers Pvt. Ltd. (MJPL), wherein certain data in "J-Pack" software was found indicating transactions with the assessee. During assessment proceedings, the Assessing Officer (AO) observed that jewellery purchases to the extent of 2340.210 grams were not fully supported by invoices. The assessee, while denying any unaccounted purchases, offered an additional income of Rs. 26,00,492/- to buy peace and avoid litigation. The AO accepted the said offer and completed the assessment u/s 143(3) by making addition of Rs. 26,00,492/-. The CIT(A) confirmed the addition on the ground that the assessee had voluntarily agreed to the same. 13.2 The issue before us is whether the addition of Rs. 26,00,492/- made solely on the basis of voluntary disclosure, is sustainable in law and on facts. 13.3 The learned Authorised Representative (AR) submitted that all transactions with MJPL were duly recorded in the books of accounts. Detailed reconciliation was furnished before the AO, which was not properly appreciated. The addition was made solely based on a conditional offer to avoid litigation and not on any incriminating evidence. Even assuming without admitting that there....