TaxTMI 
TaxTMI 
The amendment brought to Section 153C of the Act, 1961 vide Finance Act 2015 shall be applicable to searches conducted under Section 132 of the Act before 01.06.2015[Sec 132- ITA'61 - Sec 247- ITA'25]
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....he amendment brought to Section 153C of the Act, 1961 vide Finance Act 2015 shall be applicable to searches conducted under Section 132 of the Act before 01.06.2015[Sec 132- ITA'61 - Sec 247- ITA'25]<br>By: - Vivek Jalan<br>Income Tax<br>Dated:- 7-8-2026<br>The purpose of The Income Tax Act is to tax the income generated in India by selfassessment made by the assesses or by bringing the evaders to....
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.... tax by proceedings under the Act. The amendments to the Act would have to be interpreted inconsonance with this basis principle. This is laid down by recent judgement of The Hon'ble Apex Court in the case of Income Tax Officer Versus Vikram Sujitkumar Bhatia - 2023 (4) TMI 296 - Supreme Court and this judgement can be a precedent to many judgements which may be pronounced in Income Tax A....
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....ssessment cases in the years to come, especially those under Section148. Section 153C allows the revenue department to proceed against a party other than the person who is being searched, if incriminating articles against the "other person" is found during the search. Section 153C initially used the word "belong/belongs to". So, if any books of accounts or documents which "belong/belongs to" a ....
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....person other than the person who is being searched is discovered during the search proceedings, Section 153C enabled the department to proceed against the "other person" if the materials indicated undisclosed income or assets. The contention of the revenue that Section 153C is a machinery provision and hence its manifest purpose should be given effect to was sometimes accepted by the Court. Howeve....
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....r thereafter the words were substituted by "pertains or pertain to". In the present case, even though the search under Section 132 was initiated prior to the amendment to Section 153C w.e.f. 01.06.2015, the books of account or documents or assets were seized by the AO of the non-searched person only on 25.04.2017, which is subsequent to the amendment, therefore, when the notice under Section 15....
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....3C was issued on 04.05.2018, the provision of the law existing as on that date, i.e., the amended Section 153C shall be applicable, was held. It was held that the object and purpose of Section 153C is to address the persons other than the searched person. If the submission on behalf of the assessees that despite the fact that the incriminating materials have been found in the form of books of a....
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....ccount or documents or assets relating to them from the premises of the searched person, still they may not be subjected to the proceedings under Section 153C solely on the ground that the search was conducted prior to the amendment is accepted, in that case, the very object and purpose of the amendment to Section 153C, which is by way of substitution of the words "belongs or belong to" to the wor....
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....ds "pertains or pertain to" shall be frustrated. Any interpretation, which may frustrate the very object and purpose of the Act / Statute shall be avoided by the Court and hence this decision. It seems that now Counsels and tax-practitioners should thus note of this judgement and even look into the merits of the cases when arguing on purely technical grounds. =============<br> Scholarly arti....
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