TaxTMI 
TaxTMI 
2026 (10) TMI 44
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....272/Del/2026 2014-15 -Do- -Do- -Do- 3. ITA No. 3103/Del/2026 2015-16 31.12.2025 26.12.2016 143(3) of the Act 4. C.O.No.-273/Del/2026 2015-16 -Do- -Do- -Do- 2. Before us, both the parties have stated that the facts involved in all these appeals are common, therefore, they are taken together and decided by a common order. 3. Briefly stated the facts of the case are that the assessee is a company and filed its return of income on 29.10.2013, declaring total income of INR 107,11,01,660/- under normal provisions of Act and book profit of INR 1,95,95,10,306/- was declared u/s 115JB of the Act for the purpose of MAT. The case of the assessee was selected for scrutiny and assessment was completed u/s 143(3) of the Act vide order dated 04.01.2017 wherein total income of the assessee was assessed at INR 1,10,82,62,525/-. Thereafter, a search and seizure operation was conducted u/s 132 in the case of M/s. Perform Interiors Pvt. Ltd. on 09.02.2022. The AO observed that during the course of search conducted in the case of M/s. Perform Interiors Pvt. Ltd., one hard disk was found and seized, containing data in the shape of Excel work book tit....
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.... of the case, Ld. CIT(A), Delhi, has erred in quashing the order u/s 147 dated 31.03.2024 and notice u/s 148 dated 31.03.2023 for reassessment pertaining to AY 2013-14 treating the same as time barred by wrongly interpreting the first proviso to section 149(1)(b) of the Act which clearly states that if no notice could have been issued before the commencement of Finance Act, 2021 w.e.f. 01.04.2021 as per the then provisions of sec. 148 OR sec. 153A OR sec. 153C, then the notice for reopening cannot be issued at present 4. Whether on the facts and circumstances of the case, Ld. CIT(A), ignored this statutory position and considered the facts only partially as the AY 2013-14 falls squarely within the extended 10-year block under the old section 153A, meaning it is perfectly covered by the first proviso to the amended section 149 of the Act 5. The Order of the Hon'ble CIT(A), Delhi is erroneous and not tenable in law and on facts. 6. The appellant craves to add, alter OR amend any/all of the grounds of appeal before OR during the course of the hearing of the appeal." 6. The assessee also filed cross objection wherein the assessee has raised Cross-obj....
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....ssment year beginning on or before 1st day of April, 2021, if ^28[a notice under section 148 or section 153A or section 153C could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section or section 153A or section 153C, as the case may be], as they stood immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this sub-section shall not apply in a case, where a notice under section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: ^29[Provided also that for cases referred to in clauses (i), (iii) and (iv) of Explanation 2 to section 148, where,- (a) a search is initiated under section 132; or (b) a search under section 132 for which the last of authorisations is executed; or (c) requisition is made under section 132A, after the 15th day of March of any financial year and the period for issu....
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....As per ld. CIT DR, the case of the assessee is re-opened on the basis of documents found and seized from the possession of third party i.e. M/s. Perform Interiors Pvt. Ltd. and therefore, the pre-amended provisions of seciton153C of the Act are applicable and can be invoked in the instant case and thus, extended the parties of 10 years is applicable in the instant case. He thus, submits that the action of ld. CIT(A) in holding that if the case of the assessee could not be reopened u/s 148 under pre-amended provisions where the limit of 06 years from the end of the relevant year is provided and therefore the order of Ld.CIT(A) is correct to such extent however, the proceedings u/s 153C could be initiated for the extended period and thus the AO has rightly initiated the proceedings u/s 148 of the Act. Ld.CIT Dr submits that the assessee's case was re-opened in FY 2022-23 and therefore, period of 10 years would be available upto AY 2013-14 and accordingly, he prayed that the order of ld. CIT(A) on this score should be reversed. 10. On the other hand, ld.AR for the assessee vehemently supported the order of ld. CIT(A) and submits that in the instant case, ld. CIT(A) has followed the....
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....d and seized. According to those excel sheets, cash payments were made by the assessee on different dates in respect of different orders for furniture, interior etc. The AO as per the reasons recorded for re-opening, placed at pages 62 onwards of PB, treated the cash payments in three different orders for different items as a single event and total cash payment of made was taken the basis for re-opening the assessment by applying the provision of section 149(1)(b) r.w.s 149(1A) of the Act. Before going further, we first refer the provisions of section 149 of the Act [as existed for the relevant AY applicable for the search conducted on or after 01.04.2021], which reads as under:- 149. [(1A) "Notwithstanding anything contained in sub-section (1), where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event or occasion of the value referred to in clause (b) of sub-section (1), has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years within the period referred to in clause (b) of su....
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....ate. In the case of Dinesh Jindal (supra), the Hon'ble High Court under identical circumstances, wherein the case of the assessee was re-opened u/s 148 of the Act by issue notice dated 30.03.2023 had computed the period of 10 years which ends upto AY 2014-15 and held the AY 2013-14 has fallen beyond the block period of 10 years u/s 153C r.w.s. 153A of the Act. The relevant observations of the Hon'ble Court as contained in para 17 to 20 are as under:- 17. "Insofar as the two Provisos to Section 149 (1) are concerned, we had in Ojjus Medicare Private Limited observed as follows: "108. We also find ourselves unable to countenance the submissions based upon the two Proviso's placed in Section 149 for the following reasons. It must at the outset be noted that Section 149 regulates the time within which a notice under Section 148 may be issued. It thus neither ventures nor attempts to regulate the search assessment powers that are available to be invoked in terms of Sections 153A or 153C. Secondly, although the First Proviso (and to the extent that it included a reference to Sections 153A and 153C). came to be introduced by virtue of Finance Act. 2022 (Act 6 of 2022....
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....iv) to Section 148 of the Act, we note that the said issue along with a challenge to the vires of the said Explanation is being considered by us in WP(C) 1023/2024-Deeksha Holding Limited v. ACIT, Delhi & Anr. Thus, we refrain from answering this question in the instant writ petition. The same is consequently kept open to be urged by the assessee in an appropriate case and if circumstances so warrant." 15. Further, as observed above, even if the Revenue's contention is accepted that the case of the assessee could be re-opened as per provisions of section 149(1)(b) of the Act, the income escaped assessment is less than INR 50.00 Lakhs i.e. [INR 13.00 Lakhs only]. Therefore even though, the provision of section 149(1)(b) of the Act are not applicable in the instant case where case has been re-opened after the expiry of 03 years and before the end of 10 years from the end of the year in which search is taken place. Accordingly, though we are not in agreement with the reasons given by the ld. CIT(A) while holding the reassessment proceedings as barred by limitations however, as observed above, in the instant case, there are three different events and cumulative payment in cash of un....