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TMI Blog2023 (8) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... ntical issue held common judgment and order passed by the High Court is held to be unsustainable and the question, i.e., Whether the amendment brought to Section 153C vide Finance Act, 2015 would be applicable to searches conducted under Section 132 of the Act, 1961 before 01.06.2015, i.e., the date of amendment? , is answered in favour of the Revenue and against the assessees and is answered accordingly. Thus 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, 1961 before 01.06.2015, i.e., the date of the amendment. The appeal is required to be allowed and is accordingly allowed. The impugned order dated 23.11.2022 passed by the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in this appeal is not res integra in view of the decision of the Hon ble Supreme Court in case of Income Tax Officer vs. Vikram Sujitkumar Bhatia reported in [2023] 149 Tax.Com 123 SC. 4. Brief facts of the case are as under: The assessee is engaged in construction organization/development work. A search was conducted at the premises of the members of Soham Group on 13.06.2013 during which certain incriminating loose papers were found and seized. Search was also carried out of Sakar Group on 12.07.2013 and simultaneous survey action under section 133A of the Act was also carried out at the business premises of the said group. 5. During the course of search, evidences were collected showing cash transactions between va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act. 9. Being aggrieved, the assessee preferred appeal before the CIT (Appeals) contesting validity of the notice issued under section 153C of the Act on the ground that Assessing Officer could not have assumed jurisdiction to assess income under the said section as the documents must belong to the assessee and merely because the documents by even remotely pertains to the assessee, the same could not have been made basis for assuming the jurisdiction by relying upon the amendment in section 153C retrospectively. 10. The CIT(A) after considering the facts of the case and the provision of section 153C prevalent on the date of the search allowed the appeal of the assess on the ground that the Assessing Officer could not have a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umar Bhatia (supra) dealing with identical issue as to whether the Assessing Officer could have assumed the jurisdiction on the basis of the materials pertaining to the assessee seized during the course of search, prior to the amendment in section 153C of the Act, notice issued under section 153C was held to be valid as under: 10.8 Insofar as the submission on behalf of the respective respondents assessees that by way of amendment to Section 153C by Finance Act, 2015, it brings into its fold, the assessees persons, who were not so far covered by it and, therefore, it affects the substantive rights of the assessees and, hence, it should not be made applicable retrospectively, is concerned, the submission seems to be attractive but d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 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 words pertains or pertain to shall be frustrated. As observed hereinabove, any interpretation, which may frustrate the very object and purpose of the Act / Statute shall be avoided by the Court. If the interpretation as canvassed on behalf of the respective respondents is accepted, in that case, even the object and purpose of Section 153C namely, for assessment of income of any other person (other than the searched person) shall be frustrated. 11. In view of the above and for the reasons stated above, the impugned common judgment an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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