2026 (2) TMI 1476

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....n behalf of the assessee assailing validity of the notice issued u/s.153C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 27.05.2022 and the consequent assessment order dated 05.03.2024 passed u/a.153C of the Act submits that, in light of the amendment by way of insertion of sub-section (3) to section 153C of the Act, the assessment in the case of the assessee could not have been made under the provisions of section 153C of the Act after 01.04.2021. Narrating facts of the case, he submits that a search and seizure action u/s.132 of the Act was carried out in the case of Alankit Group on 18.10.2019. After receipt of the seized and alleged incriminating material, the Assessing Officer (AO) of the assessee recorded sat....

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.... of search and seizure action in the case of Alankit Group. From the search material, it was evident that the assessee had made cash payment of Rs.4,91,830/- for which no cogent explanation was furnished. Accordingly, the AO made an addition of Rs.4,91,000/- under section 69A of the Act. 4. Both sides heard, orders of the authorities below examined. The short issue for consideration in the present appeal is whether the notice issued u/s.153C of the Act and the consequent assessment made thereunder are valid in the facts and circumstances of the case. The relevant dates, i.e., the date of search in the case of Alankit Group (18.10.2019); the date ofsatisfaction note (10.05.2022); and the date of notice u/s. 153C of the Act (27.05.2022), a....

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....ndered in the case of CIT vs. Jagdish Singh, 155 taxmann.com 155 (SC) held as under: "41. The provisions of Sub-Section (3) of Section 153C states that "153C(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 requisition under Section 132A on or after the 1st day of April, 2021" which means, if the search is initiated subsequent to 01.04.2021, the provision of Section 153C will not apply and accordingly, no proceedings can be initiated against the other person. 42. According to the petitioner, the date of handing over of the seized materials, i.e., 25.11.2022, is the date of initiation of search. If the sa....