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TMI Blog2024 (4) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... APPL. 20217/2023 (Stay), W.P.(C) 5182/2023 & CM APPL. 20219/2023 (Stay), W.P.(C) 5215/2023 & CM APPL. 20383/2023 (Stay), W.P.(C) 5216/2023& CM APPL. 20385/2023 (Stay), W.P.(C) 5217/2023 & CM APPL. 20387/2023 (Stay), W.P.(C) 5224/2023& CM APPL. 20409/2023 (Stay), W.P.(C) 5236/2023 & CM APPL. 20429/2023 (Stay), W.P.(C) 5240/2023 & CM APPL. 20469/2023 (Stay), W.P.(C) 5249/2023 & CM APPL. 20484/2023 (Stay), W.P.(C) 5252/2023 & CM APPL. 20552/2023 (Stay), W.P.(C) 5368/2023 & CM APPL. 20965/2023 (Stay), W.P.(C) 5370/2023 & CM APPL. 20969/2023 (Stay), W.P.(C) 5626/2023 & CM APPL. 22083/2023 (Stay), W.P.(C) 5976/2023 & CM APPL. 23470/2023 (Stay), W.P.(C) 5643/2023 & CM APPL. 22123/2023 (Stay), W.P.(C) 5662/2023 & CM APPL. 22160/2023 (Stay), W.P.(C) 5789/2023 & CM APPL. 22664/2023 (Stay), W.P.(C) 5790/2023 & CM APPL. 22666/2023 (Stay), W.P.(C) 5794/2023 & CM APPL. 22676/2023 (Stay), W.P.(C) 6160/2023 & CM APPL. 24242/2023 (Stay), W.P.(C) 6260/2023 & CM APPL. 24598/2023 (Stay), W.P.(C) 6284/2023 & CM APPL. 24651/2023 (Stay), W.P.(C) 6673/2023 & CM APPL. 26129/2023 (Stay), W.P.(C) 6962/2023 & CM APPL. 27125/2023 (Stay), W.P.(C) 7157/2023 & CM APPL. 27900/2023 (Stay), W.P.(C) 7272/2023& CM APP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2024 & CM APPL. 5030/2024 (Stay), W.P.(C) 1212/2024 & CM APPL. 5047/2024 (stay), W.P.(C) 1213/2024 & CM APPL. 5049/2024 (Stay), W.P.(C) 1214/2024 & CM APPL. 5051/2024 (Stay) The Pr. Commissioner of Income Tax-Central-1, Assistant Commissioner of Income Tax Central Circle 17, & Anr. Ashwani Kumar Gupta, Kapareva Development Private Limited, Alankit Insurance Brokers Limited, Alankit Finsec Limited, New Wave Realtors Private Limited, Shashi Garg, Vinod Kumar Garg, Alankit Insurance TPA Limited, Alka Agarwal, Vikas Surya Developers Private Limited, Alankit Forex India Limited, Tina Organics Pvt. Ltd., Pratishtha Images Private Limited, Tarun Kumar Sahay, Vikas Promoters Private Limited, Vinod Kumar Maheshwari, Shanti Kumar Agarwal HUF, Sakshi Agarwal, Vivek Garg, Anuj Sharma, Ankit Agarwal -Legal Heir of Late Shanti Kumar Aggarwal, Sunoj Engineers Pvt. Ltd., Saksham Investor Services Private Limited, Pack Plast -India- Private Limited, Saksham Commodities Limited, Susheel Jain, Vikas Wahi, Jagmohan Kejriwal, Mamta Agarwal, Ashutosh Agarwal, Indo Greenfuel Private Limited, Betsy Growth Finance Limited, Subodh Kant Sahay HUF, Naresh Mittal, Mahabir Parshad Gupta Versus Ojjus Medicare P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 - 118 K. SUMMARY OF CONCLUSIONS 119 L. DISPOSTIF 120 - 123 A. INTRODUCTION 1. This batch of writ petitions and an Income Tax Appeal filed under Section 260A of the Income Tax Act, 1961 [Act] (ITA 52/2024) assail the initiation of assessment proceedings pursuant to the provisions of Section 153C of the Act. The challenge is firstly raised with the petitioners questioning the identification and computation of the block of six Assessment Years [AYs] immediately preceding the AY relevant to the previous year in which the search was conducted or requisition made. The petitioners additionally impugn the manner in which the respondents have reckoned the years which would be included within the phrase "relevant assessment year" as defined by Explanation 1 to Section 153A(1) of the Act. 2. The petitioners would contend that insofar as the impugned notices pertaining to AYs' 2010-11, 2011-12, 2012-13 and 2013-14 are concerned, they would be liable to be quashed since they fall beyond the ambit of "relevant assessment year" as defined by Explanation 1 to Section 153A when computed from the date of handover of the requisite material to the Assessing Officer [AY] of the "other pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xure P 8) 28.12.2021 (Annexure P 2) New Wave Realtor Pvt. Ltd. 4944/2023 2010-11 14.02.2022 (Annexure P 16) 25.02.2022 (Annexure P 8) 25.02.2022 (Annexure P 4) Vineeta Gupta 4993/2023 2011-12 Undated (Annexure P 16) 17.03.2022 (Annexure P 2) 23.03.2022 (Annexure P 3) Shashi Garg 5128/2023 2010- 11 09.03.2022 (Annexure P 7) 15.03.2022 (Annexure P 11) 15.03.2022 (Annexure P 2) New Wave Realtor Pvt. Ltd. 5150/2023 2011-12 14.02.2022 (Annexure P 14) 25.02.2022 (Annexure P 6) 25.02.2022 (Annexure P 2) Alankit Insurance Brokers Ltd. 5181/2023 2011-12 Not Provided 24.12.2021 (Annexure P 5) 28.12.2021 (Annexure P 2) Alankit Insurance TPA Ltd. 5182/2023 2011-12 Not Provided 24.12.2021 (Annexure P 6) 28.12.2021 (Annexure P 2) Alka Agarwal 5216/2023 2010-11 Not Provided 24.12.2021 (Annexure P 7) 30.12.2021 (Annexure P 2) Vikas Surya Developers 5217/2023 2011-12 14.02.2022 (Annexure P 6) 17.02.2022 (Annexure P 6) 22.03.2022 (Annexure P 2) Alka Agarwal 5224/2023 2011-12 Not Provided 24.12.2021 (Annexure P 8) 30.12.2021 (Annexure P 2) Alankit Forex India Pvt. Ltd. 5236/2023 2010-11 Not Provided 24.12.2021 (Annexure P 7) 28.12.2021 (An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided 28.02.2022 (Annexure P 5) 02.05.2022 (Annexure P 2) Alankit Forex India Ltd. 7401/2023 2012-13 Not Provided 24.12.2021 (Annexure P 7) 28.12.2021 (Annexure P 2) Vivek Garg 7821/2023 2011-12 Not Provided 11.03.2022 (Annexure P 6) 05.05.2022 (Annexure P 2) Vivek Garg 7822/2023 2010-11 Not Provided 11.03.2022 (Annexure P 6) 05.05.2022 (Annexure P 2) New Wave Realtors Pvt. Ltd. 9124/2023 2012-13 14.02.2022 (Annexure P 15) 25.02.2021 (Annexure P 7) 25.02.2022 (Annexure P 2) 5. List II, which is reproduced hereinbelow, relates to - (i) those cases where the Satisfaction Note by the AO of the "other person" was recorded between 01 April 2022 to 31 March 2023 and (ii) where the Satisfaction Note by the AO of the non-searched entity was recorded between 01 April 2023 to 31 March 2024:- Petitioner Name WP(C) AY Date of Satisfaction note by Assessing Officer of the searched person Date of Satisfaction note by Assessing Officer of the non- searched person Date of Section 153C notice Ashwani Kumar Gupta 3714/2023 2010-11 16.03.2022 (Supplied with Counter Affidavit) 22.06.2022 (Annexure A- 5) 23.06.2022 (Annexure A-2) Shanti Kumar Aggarwal throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2022 (Annexure P-9) Not Provided 09.03.2023 (Annexure P-6) Mahavir Prasad Gupta 1206/2024 2011-12 24.06.2022 (Annexure P- 13) Not Provided 26.08.2022 (Annexure P-6) Mahavir Prasad Gupta 1207/2024 2012-13 24.06.2022 (Annexure P- 13) Not Provided 26.08.2022 (Annexure P-6) Mahavir Prasad Gupta 1208/2024 2010-11 24.06.2022 (Annexure P- 13) Not Provided 26.08.2022 (Annexure P-6) Mahavir Prasad Gupta 1209/2024 2013-14 24.06.2022 (Annexure P- 13) Not Provided 26.08.2022 (Annexure P-6) Tarun Kumar Sahay (HUF) 1212/2024 2013-14 01.06.2022 (Annexure P- 14) Not Provided 26.08.2022 (Annexure P-6) Tarun Kumar Sahay (HUF) 1213/2024 2010-11 01.06.2022 (Annexure P- 14) Not Provided 26.08.2022 (Annexure P-6) Tarun Kumar Sahay (HUF) 1214/2024 2011-12 01.06.2022 (Annexure P- 14) Not Provided 26.08.2022 (Annexure P-6) Vinod Kumar Garg 5130/2023 2010-11 24.12.2021 (as recorded in Annexure P-8) 16.02.2023 (Annexure P- 8) 19.02.2023 (Annexure P-2) Vinod Kumar Garg 5215/2023 2011-12 24.12.2021 (as recorded in Annexure P-8) 16.02.2023 (Annexure P-7) 19.02.2023 (Annexure P-2) Mohan Kumar Garg 5976/2023 2011-12 Not provided 15.03.2023 (Annexure P- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitions was founded on the Fourth Proviso to Section 153A of the Act and which prescribes certain pre-conditions which must be satisfied before assessment or reassessment action can be commenced in respect of the "relevant assessment year". One of the prerequisites for commencement of action as constructed in terms of clause (a) of the Fourth Proviso, and which constitutes a sine qua non for issuance of notice, is the revelation of income which may have escaped assessment represented in the form of an asset amounting to or likely to amount to INR 50 lakhs or more in the "relevant assessment year" or in aggregate over the relevant AYs'. The petitioners argued that in the following cases, the asset which came to be identified from the books of account, documents or other evidence gathered in the course of the search was less than INR 50 lakhs and consequently the impugned notices in these cases are liable to be quashed on this ground additionally. The following matters, which for the sake of convenience shall be referred to as List III, are stated to fall in this category: Petitioner Name WP(C) AY Date of Satisfaction note by Assessing Officer of the searched person Date of Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .10.2019. Analysis of the documents seized contain information pertaining to M/s Vikas Surya Developers Pvt. Ltd. have been found. The relevant details are as under: 2. Ledger of Vinod Garg has been obtained from laptop of Sh. Sunil Kumar Gupta found and seized from the residence of Sh. Sunil Kumar Gupta, at 3584/4, Narang Colony, Gali No. 4 Tri Nagar Delhi (Path: F:\SKGR A-32\SUNIL KUMAR GUPTA liP LAPTOP \ EXTRACTED DATA\Tally\[root].l\LocalDisk\ ANARKALI\ BACKUP\DATA24\DATA24). 3. Based on the detailed analysis of Ledger of Sh. Vinod Garg, it came to light that the unaccounted cash transactions have been made to the extent as summarily quantified below: Particular FY Sum of Unaccounted Cash payments made to Sh. Alok K Agarwal Sum of Unaccounted Cash received from Sh. Alok K Agarwal VINOD GARG 2009-10 3,25,45,285 2,86,662 2010-11 4,02,50,800 1,55,11,420 2011-12 7,00,000 2012-13 1,00,00,000 5,37,10,550 2013-14 41,75,400 2, 70,00,000 2014-15 3,15,00,000 3,73,82,604 2015-16 2,35,45,902 52,83,417 2016-17 2,56,81,000 2017-18 7,85,00,000 2018-19 89,09,000 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search and considering the principles laid down by the jurisdictional authorities from time to time, it is evident that incriminating documents seized from the premises of Sh. Sunil Kumar Gupta are related to the assessee and the contents of such documents are duly corroborated and considered as true. Hence, the additions made on the basis of incriminating material are valid and as per the provisions of statute. 22. Accordingly, in view of the above discussion, it is evident that the assesse has undertaken bogus/sham transactions wherein amount of Rs. 4,95,00,000/- is received from Newwave Commercials Pvt. Ltd by the assessee during the relevant previous year in lieu of cash as discussed above. Thus, an amount of Rs. 4,95,00,000/- is hereby added to the total income of the assessee for the relevant period as per the provisions of the Section 68 of the I .T. Act, 1961 for A. Y. 2011-12 relevant to F.Y. 2010-11. (Addition u/s 68: Rs. 4,95,00,000/-) 22.2 Further, the assessee has concealed its particulars of income, accordingly, penalty proceedings u/s 271(1)(c) of the Act are separately initiated." 10. On the basis of the aforesaid, the AO proceeded to make additions under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to beneficiary Amount credited to beneficiary Vineeta Gupta 2009-10 AFL 40,00,000 20,00,000 Cash 600 1,40,00,500 2010-11 Cash 10,000 1,15,00,000 DCPL 11,00,000 NCPL 94,00,000 PIPL 1,50,00,000 1,50,00,000 Cash 2,00,00,000 2011-12 AFL 49,50,000 DCPL 83,00,000 NCPL 67,50,000 PIPL 52,50,000 67,50,000 2012-13 Cash 17,95,000 NCPL 26,50,000 2013-14 AFL 5,00,000 60,00,000 Vineeta Gupta EFL Alok K. Agarwal 19,00,000 19,00,000 DCPL 9,00,000 2012-13 Cash 96,00,000 EFL 2,14,24,575 2013-14 AAL 69,19,221 Vineeta Gupta 2009-10 AFL 1,63,00,000 Cash 2,37,00,000 EFL 45,15,700 Vineeta Gupta in Newwave 2012-13 Cash 35,00,000 Vineeta Gupta 2009-10 Eurogold 74,00,000 4. The said satisfaction note prepared by the AO of the person searched has been kept on record. I have also examined the above documents and the contents noted/written therein. After examination of these documents, I am also satisfied that these docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied with. In view of the above, there is no merit and substance in your submissions. The objections filed by you are disposed off as above and you are requested to comply with the notices issued u/s 153C for A.Ys. 2010-11 to 2020-21 and notices to be issued from time to time issued by this office. 1. For the purposes of finalization of your assessment proceedings u/s 153C of the Income Tax Act, 1961 (herein after read as the 'Act') for the concerned assessment year, you were issued notice u/s 142(1) of the Act for the year under consideration. In reply of which you have filed your submission, after going through that, it is found that you have not filed the satisfactory reply in respect of the below mentioned transactions: Name of beneficiary F.Y. Transaction done with Amount debited to beneficiary Amount credited to beneficiary Vineeta Gupta 2009-10 AFL 40,00,000 20,00,000 Cash 600 1,40,00,500 2010-11 Cash 10,000 1,15,00,000 DCPL 11,00,000 NCPL 94,00,000 PIPL 1,50,00,000 1,50,00,000 Cash 2,00,00,000 2011-12 AFL 49,50,000 DCPL 83,00,000 NCPL 67,50,000 PIPL 52,50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltiple transactions pertaining to Financial Year [FY] 2012- 13 and 2014-15 were noticed from the documents and material gathered in the course of the search. Dealing with the aforesaid, the AO of the petitioner/ assessee observed as under: "3. As per satisfaction note dated 20.06.2022, during the course of search and seizure operation, some incriminating documents were found and seized marked as Annexure A-32 as SUNIL KUMAR GUPTA HP LAPTOP. The ledgers of Shri Vijay Kumar obtained from the laptop of Shri Sunil Kumar Gupta have been found and seized from the residence of Sh. Sunil Kumar Gupta at 3584/4 Narang Colony, Gali No. 4, Tri Nagar, Delhi, during the course of search u/s 132 of the Income-tax Act, 1961 carried in the case of Sh. Alok Kumar Agarwal, Sh. Ankit Agarwal, M/s Alankit Limited and M/s Alankit Assignments Limited wherein it has been found that the transactions entered into by various beneficiaries with various shell entities controlled by Alok K Agarwal, against the unaccounted cash or otherwise to take accommodation entries, are tabulated below: Name of beneficiary F.Y. Transactions done with Amount debited to beneficiary Amount credited to beneficiary Anul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the above material/documents pertain to Shri Anuj Sharma (PAN: BEBPS2370N) and the entries appearing therein have a bearing on the determination of the income of Shri Anuj Sharma (PAN: BEBPS2370N). 5. In view of the above, I am satisfied that it is a fit case for initiating proceeding u/s 153C r.w.s. 153A of the I.T. Act 1961, for the period relevant to the A.Ys. 2010-11 to 2020-21. Accordingly, notice u/s 153C r.w.s. 153A of the Act, for the A.Ys. 2010-11 to 2020-21 are being issued." 15. As would be manifest from the tabular statement which finds place in the Satisfaction Note, although the individual transactions referable to the FYs' in question fall below the threshold of INR 50 lakhs, when viewed cumulatively, they would meet the pre-condition comprised in clause (a) of the Fourth Proviso to Section 153A of the Act. The consequential question which arises is whether the limit of INR 50 lakhs which is spoken of must be satisfied in each of the "relevant assessment year" or could the prescriptions of clause (a) be said to be satisfied if that monetary precondition is met on a cumulative calculation of the total asset value pertaining to the years opened up for assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he aforenoted AY had attained finality before the insertion of the amended provisions. The submission in essence proceeded on the basis of the time frames for reopening which existed in the statute prior to 2017 and those expiring before the amendments came to be introduced in that year. In all such cases, according to Mr. Kapoor, the introduction of the concept of a ten year block period would not empower the respondents to reassess or reopen those years which had acquired a state of repose. In support of his argument of closure, Mr. Kapoor placed reliance upon the judgment rendered by the Court in Brahm Dutt vs. ACIT 2018 SCC Online Del 12847. We deem it apposite to extract the following passages from that decision: "13. In K. M. Sharma's case (supra) the assessee's land was acquired under the Land Acquisition Act, 1894 and an award was passed in 1967 granting compensation in favour of the assessee. Thereafter, the Additional District Judge by judgment dated May 20, 1980, held the assessee to be entitled to 1/32nd share of the compensation and the assessee was granted total compensation of Rs. 1,18,810 in the year 1981. Subsequently, by another judgment dated July 31, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th fair certainty how the authority will use its coercive powers in given circumstances, and to plan one's affairs on the basis of this knowledge" (Ref. F. A. Hayek, "Road to Serfdom", 1944). In this case, the interpretation proposed by the Revenue has the potential of arming its authorities to re- open settled matters, in respect of issues where the citizen could genuinely be sanguine and had no obligation of the kind which the Revenue seeks to impose by the present amendment. All the more significant, is the fact that in the absence of a clear indication, every statute is presumed to be prospective. The Revenue had sought to contend that the amendment (to section 149) is merely procedural and no one has a vested right to procedure ; and that procedural amendments can be given effect any time, even in ongoing proceedings. 17. This court is of the opinion that there is no merit in the Revenue's contention. In Sri Prithvi Cotton Mills v. Broach Borough Municipality [1970] AIR 1970 SC 192, on examining the validity of the retrospective amendment of a statute in the light of article 19(1)(g) of the Constitution of India, i.e., a fundamental right to practice any profession, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessment for that year. These principles were reiterated in CIT v. Vatika Township (P.) Ltd. [2014] 367 ITR 466 (SC)." 18. Mr. Kapoor in this respect also drew our attention to the decision of the Supreme Court in S.S. Gadgil vs. Lal & Co. (1964) 8 SCR 72 and K.M. Sharma v. Income-Tax Officer, Ward 13(7), New Delhi (2002) 4 SCC 339. The relevant passages from the judgment in S.S. Gadgil, are reproduced hereinbelow: "9. A proceeding for assessment is not a suit for adjudication of a civil dispute. That an income tax proceeding is in the nature of a judicial proceeding between contesting parties, is a matter which is not capable of even a plausible argument. The Income Tax Authorities who have power to assess and recover tax are not acting as judges deciding a litigation between the citizen and the State : they are administrative authorities whose proceedings are regulated by statute, but whose function is to estimate the income of the taxpayer and to assess him to tax on the basis of that estimate. Tax legislation necessitates the setting up of machinery to ascertain the taxable income, and to assess tax on the income, but that does not impress the proceeding with the cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling with the effect of the Income Tax and Business Profits Tax (Amendment) Act, 1948, observed: "The plain effect of the substitution of the new Section 34 with effect from 30th March, 1948 is that from that date the Income Tax Act is to be read as including the new section as a part thereof and if it is to be so read, the further effect of the express language of the section is that so far as cases coming within clause (a) of sub-section (1) are concerned all assessment years ending within eight years from 30th March, 1948 and from subsequent dates, are within its purview and it will apply to them, provided the notice contemplated is given within such eight years. What is not within the purview of the section is an assessment year which ended before eight years from 30th March, 1948." But it may be recalled that the amending Act of 1948 with which the Court was concerned in Calcutta Discount Co. case [23 ITR 471] came into force on September 8, 1948, but Section 1(2) prescribed that the amendment in Section 34 of the Income Tax Act, 1922, shall be deemed to have come into force on March 30, 1948, and the period under the unamended section within which notice could be issued u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red." 19. In K.M. Sharma, the Supreme Court while reiterating the view which was taken in S.S. Gadgil, had held as under: "14. A fiscal statute, more particularly, on a provision such as the present one regulating period of limitation must receive strict construction. Law of limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation to a litigant for an indefinite period on future unforeseen events. Proceedings, which have attained finality under existing law due to bar of limitation cannot be held to be open for revival unless the amended provision is clearly given retrospective operation so as to allow upsetting of proceedings, which had already been concluded and attained finality. The amendment to sub-section (1) of Section 150 is not expressed to be retrospective and, therefore, has to be held as only prospective. The amendment made to sub-section (1) of Section 150 which intends to lift the embargo of period of limitation under Section 149 to enable the authorities to reopen assessments not only on the basis of orders passed in the proceedings under the IT Act but also on order of a court in any proceedings under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive operation i.e. up to 1-4- 1956, only. That provision must be read subject to the rule that in the absence of an express provision or clear implication, the legislature does not intend to attribute to the amending provision a greater retrospectivity than is expressly mentioned, nor to authorise the Income Tax Officer to commence proceedings which before the new Act came into force had by the expiry of the period provided become barred." 21. On a proper construction of the provisions of Section 150(1) and the effect of its operation from 1-4-1989, we are clearly of the opinion that the provisions cannot be given retrospective effect prior to 1-4-1989 for assessments which have already become final due to bar of limitation prior to 1-4-1989. Taxing provision imposing a liability is governed by normal presumption that it is not retrospective and settled principle of law is that the law to be applied is that which is in force in the assessment year unless otherwise provided expressly or by necessary implication. Even a procedural provision cannot in the absence of clear contrary intendment expressed therein be given greater retrospectivity than is expressly mentioned so as to enab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated. Thus, the time period/limitation period prescribed on the date of issue of notice will apply. In our opinion, the answer is clear and has to be in affirmative, i.e. in favour of the assessee. 13. This question is not debatable or res integra and was examined and answered with lucid and clear reasoning in the opinion expressed by Hidayatullah, J. on behalf of himself and Raghubar Dayal, J. in S.C. Prashar, Income Tax Officer v. Vasantsen Dwarkadas, AIR 1963 SC 1356; 1963 (49) ITR 1 (SC). The relevant portion reads: - "93. .. .. If the 1948 Amendment could be treated as enabling the Income Tax Officer to take action at any point of time in respect of back assessment years within eight years of March 30, 1948 then such cases were within his power to tax. We have such a case here in CA No. 509 of 1958 where the notice was issued in 1949 to the lady whose husband had remitted Rs 9180 to her from Bangkok in the year relative to Assessment Year 1942-43. That lady was assessable in respect of this sum under Section 4(2) of the Income Tax Act. She did not file a return. If the case stood governed by the 1939 Amendment the period applicable would have been four years if she h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the law, as it exists when the respective actions are taken, the actions cannot be questioned provided the law is clearly retrospective. The only case in which no further action can be taken is one in which action was not taken under the old law within the period prescribed by that law and which is not also within the period mentioned in the new law if its operation is retrospective. All other cases are covered by the law in force at the time action is taken. It is from these viewpoints that these appeals, in our opinion, should be judged." 14. In the said case, question of validity of notice had arisen because of repeated/frequent changes made in the period in which reassessment proceedings could be initiated under Section 34 of the income Tax Act, 1922 during the years 1939-59. Revalidation Act had also been enacted. This ratio was followed and applied in CIT v. Sardar Lakhmir Singh (1963) 49 ITR 70 (SC), CIT, Madras v. Janabha Muhammad Hussain Nachiar Ammal, AIR 1963 SC 1401 and in ITO, A-Ward, Sitapur v. Murlidhar Bhagwandas, Lakhimpur Kheri, (1964) 52 ITR 335 (SC). xxxx xxxx xxxx 16. Going back a little in point of time J.P. Jani, ITO v. Induprasad Devshankar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the faith of the then existing law. 29. The obvious basis of the principle against retrospectivity is the principle of "fairness", which must be the basis of every legal rule as was observed in L'Office Cherifien des Phosphates v. Yamashita-Shinnihon Steamship Co. Ltd. [(1994) 1 AC 486 : (1994) 2 WLR 39 : (1994) 1 All ER 20 (HL)] Thus, legislations which modified accrued rights or which impose obligations or impose new duties or attach a new disability have to be treated as prospective unless the legislative intent is clearly to give the enactment a retrospective effect; unless the legislation is for purpose of supplying an obvious omission in a former legislation or to explain a former legislation. We need not note the cornucopia of case law available on the subject because aforesaid legal position clearly emerges from the various decisions and this legal position was conceded by the counsel for the parties. In any case, we shall refer to few judgments containing this dicta, a little later. 30. We would also like to point out, for the sake of completeness, that where a benefit is conferred by a legislation, the rule against a retrospective construction is different. If a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principal provision itself and submitted that by virtue of the First Proviso to Section 153C(1), the relevant AYs' would have to be reckoned with reference to the date on which documents pertaining to the non-searched person are received by the AO of that person. According to learned counsel, the aforesaid position is manifest from a plain reading of that Proviso and which bids us to recognize the date of receiving of the books of account, documents or assets by that AO as being the date relevant for the purposes of the Second Proviso to Section 153A(1). According to learned counsel, the aforesaid position in law can no longer be doubted bearing in mind the judgments rendered by the Supreme Court in CIT vs Jasjit Singh 2023 SCC Online SC 1265 and Income Tax Officer vs Vikram Sujitkumar Bhatia & Ors 2023 SCC Online SC 370. Mr. Kapoor invited our attention to the following passages from the decision in Jasjit Singh: "8. In SSP Aviation (supra) the High Court inter alia reasoned as follows:- "14. Now there can be a situation when during the search conducted on one person under Section 132, some documents or valuable assets or books of account belonging to some other person, in who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. 10. This Court is of the opinion that the revenue's argument is insubstantial and without merit. It is quite plausible that without the kind of interpretation which SSP Aviation adopted, the A.O. seized of the materials - of the search party, under Section 132 - would take his own time to forward the papers and materials belonging to the third party, to the concerned A.O. In that event if the date would virtually "relate back" as is sought to be contended by the revenue, (to the date of the seizure), the prejudice caused to the third party, who would be drawn into proceedings as it were unwittingly (and in many cases have no concern with it at all), is dis-proportionate. For instance, if the papers are in fact assigned under Section 153-C after a period of four years, the third party assessee's prejudice is writ large as it would have to virtually preserve the records for at latest 10 years which is not the requirement in law. Such disastrous and harsh consequences cannot be attributed to Parliament. On the other hand, a plain reading of Section 153-C supports the interpretation which this Court adopts." 23. Mr. Kapoor then highlighted the following observations as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of other person, the question of pendency and abatement of the proceedings of assessment or reassessment to the six assessment years will be examined with reference to such date" xxxx xxxx xxxx 24. As discussed hereinbefore, in terms of the proviso to section 153C of the Act, a reference to the date of the search under the second proviso to section 153A of the Act has to be construed as the date of handing over of assets/documents belonging to the assessee (being the person other than the one searched) to the Assessing Officer having jurisdiction to assess the said assessee. Further proceedings, by virtue of section 153C(1) of the Act would have to be in accordance with section 153A of the Act and the reference to the date of search would have to be construed as the reference to the date of recording of satisfaction. It would follow that the six assessment years for which assessments/reassessments could be made under section 153C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the Assessing Officer of the assessee. In this case, it would be the date of the recording of satisfaction under section 153C of the Act, i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es further evident when one views the Memorandum to Finance Bill 2005 which while inserting the First Proviso with retrospective effect from 01 June 2003 had explained the intent of that provision in the following terms: "MEMORANDUM EXPLAINING THE PROVISIONS RELATING TO DIRECT TAXES "(i) Prescribing the rates of income-tax........... Rationalisation of procedure for assessment in cases of search and seizure. ........... It is proposed to amend the said section so as to provide 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 section 153A 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 the jurisdiction over such other person..." 26. It was submitted that the respondents have committed a manifest illegality while calculating the ten year block period with reference to the date of search even though the First Proviso bids them to compute that period from the date of handing over of material to the jurisdictional AO of the "other person". Mr. Kap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1), gets postponed to the date on which documents are handed over to the AO of the 'other person'. Consequently, the question of referring the case to a larger Bench does not arise." 27. Proceeding then to the statutory position which came into effect post the 2017 Amending Act, Mr. Kapoor submitted that the provisions in question construct separate and independent principles for the purposes of identifying the six preceding AYs' or the block of ten AYs' as defined by the phrase "relevant assessment year". It was in this regard and at the outset submitted that the judgment of the Court in RRJ Securities would continue to constitute good law and would remain unimpacted by the amendments which came to be introduced by virtue of the 2017 Amending Act. According to learned counsel, the primary objective of the amendments was to expand the reach of Section 153A beyond six AYs' in cases where evidence or material may have been gathered in the course of a search. It was submitted that since the expression "relevant assessment year" came to be introduced in Section 153A, corresponding amendments were necessarily required to be made to Section 153C. According to learned counsel, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is represented in the form of undisclosed investment in any asset, section 153A of the Income-tax Act relating to search assessments has been amended to provide that notice under the said section can be issued for an assessment year or years beyond the sixth assessment year already provided up to the tenth assessment year if- (i) the Assessing Officer has in his possession books of accounts or other documents or evidence which reveal that the income which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in one year or in aggregate in the relevant four assessment years(falling beyond the sixth year); (ii) such income escaping assessment is represented in the form of asset; (iii) the income escaping assessment or part thereof relates to such year or years. 80.5 Applicability: The amended provisions of section 153A of the Income-tax Act shall apply where search under section 132 of the Income-tax Act is initiated or requisition under section 132A of the Income-tax Act is made on or after the 1st day of April 2017. 80.6 Section 153C of the Income-tax Act has also been amended to provide a reference to the relevant assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h search is conducted or requisition is made. There cannot be any doubt that since search was made in this case on 10.04.2018, the assessment year is 2019-20. The end of the assessment year 2019-20 is 31.03.2020. The computation of ten years has to run backwards from the said date ie., 31.03.2020. The first year will of course be the search assessment year itself. In that event, the ten assessment years will be as follows : 1st Year 2019-20 2nd Year 2018-19 3rd Year 2017-18 4th Year 2016-17 5th Year 2015-16 6th Year 2014-15 7th Year 2013-14 8th Year 2012-13 9th Year 2011-12 10th Year 2010-11 The case on hand pertains to AY 2009-10. It is obviously beyond the ten year outer ceiling limit prescribed by the statute. The terminal point is the tenth year calculated from the end of the assessment year relevant to the previous year in which search is conducted. The long arm of the law can go up to this terminal point and not one day beyond. When the statute is clear and admits of no ambiguity, it has to be strictly construed and there is no scope for looking to the explanatory notes appended to statute or circular issued by the department. 10. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amendments introduced in Section 153C were only consequential and in order to attune it with Section 153A. Mr. Jain submitted that the principles which came to be propounded in Jasjit Singh, although being a judgment rendered in the context of the statutory position as existing prior to the 2017 amendments, would remain unchanged. In any case, Mr. Jain sought to highlight the fact that the decision in Jasjit Singh noticed Sections 153A and 153C as they came to exist post the 2017 amendments as well. Mr. Jain submitted that the judgment in Jasjit Singh had taken due note of the serious prejudice which would be caused to an assessee if the Revenue's contentions were to be accepted or if an inordinate delay in handing over papers and materials to the jurisdictional AO of the non-searched person was to be ignored. According to Mr. Jain, the time gap that may occur clearly assumes a status of criticality in light of the binding decisions handed down by the Supreme Court. 32. Mr. Jain also reiterated the contentions addressed by Mr. Kapoor and insofar as they pertained to the computation of the six and ten AYs' as also the distinction between the starting point from which those perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 and 2011-12 had attained finality prior to 01 April 2017, the impugned notices are liable to be quashed additionally on this score. 35. Mr. Rohit Jain, learned counsel appearing in some of the writ petitions, submitted that in respect of the "other person", Section 153C substitutes the date of search with the date of receipt of documents by the jurisdictional AO. This, according to Mr. Rohit Jain, is evident from that provision bidding one to construe the date of receipt of documents by the AO of the non-searched person alone being relevant. The aforesaid position, according to Mr. Jain, can no longer be doubted bearing in mind the judgments in Jasjit Singh and RRJ Securities. Mr. Jain then submitted that insofar as the ten year block period is concerned, Section 153C enables reopening of assessments for a period of ten years including the year of receipt of documents. Learned counsel laid stress upon Section 153A speaking of the end of the assessment year and identifying that date as relevant for the purposes of identification of the ten year period. The aforesaid argument was sought to be explained with the aid of the following table: "AYs No. of Years Year of passing/ han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to mean the four assessment years in addition to the preceding six AYs'. Learned counsels laid emphasis on Circular No. 2/2018 dated 15 February 2018 to submit that the same correctly explains the intent of the Legislature while introducing the 2017 Amending Act. According to learned counsels, the aforesaid amendments were introduced in order to rationalize the provisions of search assessment. They would contend that the amendments seek to align and harmonize the provisions of Section 153C with Section 153A and thus construct a holistic scheme of assessment pertaining to searches. It was further submitted that in the absence of Section 153C independently defining "relevant assessment year", the expression would have to be necessarily understood in light of its definition as appearing in Section 153A. This position, according to learned counsels, is also manifest from para 80 of the aforenoted CBDT Circular which is extracted hereinbelow:- "80. Rationalisation of provisions of the Income Declaration Scheme, 2016 and consequential amendment to section 153A and 153C. 80.1 The provisions of clause (c) of the section 197 of the Finance Act, 2016 provide that where any income has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth Sections 153A and 153C must be read together for the purposes of calculation of six AYs'. They sought to draw sustenance for the aforesaid proposition from the following observations as rendered by the Court in Principal CIT vs. Sarwar Agency P. Ltd. 2017 SCC OnLine Del 9860: "11. Mr. Ashok Manchanda, learned senior standing counsel for the appellant, sought to pursue this court to reconsider its view in RRJ Securities (supra). The court declines to do so for more than one reason. First, for reasons best known to it, the Revenue has not challenged the decision of this court in RRJ Securities (supra) in the Supreme Court. The said decision has been consistently followed by the authorities under this court as well as by this court. Thirdly, the recent amendment to section 153C(1) of the Act states for the first time that for both the searched person and the other person the period of reassessment would be six assessment years preceding the year of search. The said amendment is prospective." 41. The submission in essence was that the identification of "relevant assessment year" must be construed and interpreted harmoniously since it could not have been the intent of the Legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isclosed income for the block period: Provided that no notice under Section 148 is required to be issued for the purpose of proceeding under this Chapter: Provided further that a person who has furnished a return under this clause shall not be entitled to file a revised return; (b) the assessing officer shall proceed to determine the undisclosed income of the block period in the manner laid down in Section 158-BB and the provisions of Section 142, sub-sections (2) and (3) of Section 143, Section 144 and Section 145 shall, so far as may be, apply; (c) the assessing officer, on determination of the undisclosed income of the block period in accordance with this Chapter, shall pass an order of assessment and determine the tax payable by him on the basis of such assessment; (d) the assets seized under Section 132 or requisitioned under Section 132-A shall be dealt with in accordance with the provisions of Section 132-B. *** 158-BD. Undisclosed income of any other person.-Where the assessing officer is satisfied that any undisclosed income belongs to any person other than the person with respect to whom search was made under Section 132 or whose books of account or other do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the charge does not fail. The machinery provisions must, no doubt, be so construed as would effectuate the object and purpose of the statute and not defeat the same (Whitney v. IRC [1926 AC 37 (HL)], CIT v. Mahaliram Ramjidas [(1939-40) 67 IA 239 : (1940) 52 LW 234 : (1940) 8 ITR 442] , Indian United Mills Ltd. v. Commr. of Excess Profits Tax [(1955) 27 ITR 20 (SC)] and Gursahai Saigal v. CIT [(1963) 48 ITR 1 (SC)] ; CWT v. Sharvan Kumar Swarup & Sons [(1994) 6 SCC 623] ; CIT v. National Taj Traders [(1980) 1 SCC 370 : 1980 SCC (Tax) 124] ; Associated Cement Co. Ltd. v. CTO [(1981) 4 SCC 578 : 1982 SCC (Tax) 3 : (1981) 48 STC 466] ). Francis Bennion in Bennion on Statutory Interpretation, 5th Edn., Lexis Nexis in support of the aforesaid proposition put forth as an illustration that since charge made by the legislator in procedural provisions is excepted to be for the general benefit of litigants and others, it is presumed that it applies to pending as well as future proceedings. 35. Having said that, let us revert to the discussion of Section 158-BD of the Act. The said provision is a machinery provision and inserted in the statute book for the purpose of carrying out asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a person other than the searched person is necessary for initiation of action under Section 158-BD. The bare reading of the provision indicates that the satisfaction note could be prepared by the assessing officer either at the time of initiating proceedings for completion of assessment of a searched person under Section 158-BC of the Act or during the stage of the assessment proceedings. It does not mean that after completion of the assessment, the assessing officer cannot prepare the satisfaction note to the effect that there exists income tax belonging to any person other than the searched person in respect of whom a search was made under Section 132 or requisition of books of accounts was made under Section 132-A of the Act. The language of the provision is clear and unambiguous. The legislature has not imposed any embargo on the assessing officer in respect of the stage of proceedings during which the satisfaction is to be reached and recorded in respect of the person other than the searched person. xxxx xxxx xxxx 41. In the result, we hold that for the purpose of Section 158-BD of the Act a satisfaction note is sine qua non and must be prepared by the assessing office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion, the ordinary meaning of the word is part of the material which can be used to construe the definition. Thirdly, as I have said, there is the absence of any rational purpose in giving the definitions a retrospective effect. It follows that "he was a joint tenant and has become the sole tenant" in section 88(1)(b) means that he was a joint tenant under a secure tenancy and has become the sole tenant under a secure tenancy. When Mrs Betty Walker became sole tenant, it was not of a secure tenancy and she was therefore not a successor. I would therefore dismiss the appeal." 45. It was further urged that Sections 153A and 153C must be interpreted in a manner that the object and purpose of search assessment is not frustrated. It was in this respect contended that by the time the impugned notices came to be issued, Section 153C existed in its amended avatar and it was the provision as it stood then which would apply. It was further submitted that the decisions in S.S. Gadgil, Brahm Dutt and C.B. Richards Ellis are clearly distinguishable since those pertained to Section 149 and not Section 153C. It was sought to be emphasized that since both the provisions stand couched in language ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfaction with respect to the "other person" would require examination and investigation at different levels. However, they submitted that public interest requires that the right of the Department to tax income basis the seized material be preserved in the case of the searched person. 49. The respondents asserted that the submission of the writ petitioners that the six or the ten year block period is liable to be calculated from the date of handing over of documents to the AO of the non-searched person fails to take into consideration various practical difficulties which would necessarily arise. It was submitted that there would always be a time lag between examination of the seized material and recording of satisfaction in the case of the "other person" by the AO of the searched person and the handing over of the seized material to the jurisdictional AO of the "other person". According to learned counsels, resultantly the period of six AYs' as well as of the "relevant assessment year" of the searched person would never coincide with those in the case of the "other person", even though in both scenarios the trigger for assessment is the material seized in the course of search. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self indicative of the AO only being prima facie satisfied that income amounting to or exceeding INR 50 lakhs may have escaped assessment. Learned counsels also underlined the words "in aggregate" as occurring in the Fourth Proviso to submit that even if the prescription of INR 50 lakhs or more was satisfied on a cumulative computation of the six or the ten AYs' period, the precondition as placed by virtue of the Fourth Proviso would stand satisfied. E. ANALYSIS OF THE STATUTORY FRAMEWORK 51. Having noticed the rival submissions which were addressed, we now proceed with our analysis of the questions which stand posited. Prior to the insertion of Sections 153A, 153B, and 153C in the Chapter pertaining to procedure for assessment, an assessment in respect of search cases was governed and regulated by Chapter XIVB of the Act. The said Chapter comprising of Sections 158B to 158BH set out the procedure for assessment or reassessment proceedings being undertaken as a fallout of a search which may have been conducted. Chapter XIVB spoke of assessments being undertaken for a block period comprising of six AYs' preceding the previous year in which the search may have been conducted or a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the block period assessment being undertaken independent of a regular assessment and thereby not contemplating a merger of the two assessment proceedings or abatement of pending assessments. Section 158BI came to be incorporated in Chapter XIVB by virtue of Finance Act 2003 with effect from 01 June 2003 and reads as under:- "158BI. Chapter not to apply after certain date.- The provisions of this Chapter shall not apply where a search is initiated under section 132, or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003." 54. Sections 153A, 153B and 153C were introduced by virtue of Finance Act, 2003. The trinity provisions constituted a paradigm change in the manner in which search assessments were liable to be conducted. They set up a procedure clearly distinct from that which was envisaged under Chapter XIVB and were ordained to apply in respect of all searches or requisitions made after 31 May 2003. The fact that these provisions were envisaged to now govern and regulate all search assessments came to be reinforced by virtue of the introduction of Section 158BI and thus bringing the curtains down on the block p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an assessment year under this section, the tax shall be chargeable at the rate or rates as applicable to such assessment year. The proposed sub-section (1) of the new section 153B provides for the time-limit for completion of assessment in case of a person where a search is initiated under section 132 or books of account, other documents or assets are requisitioned under section 132A.It provides that the Assessing Officer shall make an order of assessment or reassessment in respect of each assessment year falling within six assessment years referred to in clause (b) of section 153A, within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed. The Assessing Officer shall make an order of assessment or reassessment in respect of the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A, within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A.These amendments will take effect from 1st June, 2003." 56. Section 153A, when finally introduced, commenced with a non- obstante clause giving it overriding effect over Sections 139,147 to 149, 151 and 153 in case of a person where a search may have been initiated or a requisition made after 31 May 2003. It provided that where a search comes to be initiated or where books of accounts or other documents or assets come to be requisitioned, the AO would require the searched person to furnish a return of income in respect of each AY falling within six AYs' immediately preceding the AY relevant to the previous year in which search may have been conducted or requisition made. The First Proviso further stipulated that the AO would assess or reassess the total income in respect of each AY falling within the block of six AYs'. Of equal significance was the Second Proviso and which prescribed that if any proceedings relating to assessment or reass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oposed to amend the said section so as to provide 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 section 153A 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 the jurisdiction over such other person. It is further proposed to insert a new sub-section (2) so as to provide that for assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A in case of other person, where (a) no return of income has been furnished by such person and no notice under sub-section (1) of section 142 has been issued to him, or (b) are turn of income has been furnished by such person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before 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, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A." 60. Thereafter, vide the 2014 Finance Act, Section 153C was further amended to provide that the jurisdictional AO of the "other person" was empowered to issue notice to such "other person" if he was satisfied that the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll take effect from 1st October, 2014." 62. Clause 53 of the Notes on clauses explaining the amendment to Section 153C introduced vide the 2014 Finance Act is reproduced hereinbelow: "Clause 53 of the Bill seeks to amend section 153C of the Income-tax Act relating to assessment of income of any other person. The existing provisions contained in sub-section (1) of the aforesaid section provide that notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person, other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A. It is proposed to amend the said sub-section so as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proviso to sub- section (1) of section 153A 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 except in cases where any assessment or reassessment has abated. (2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year - (a) n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year relevant to the previous year in which such search is conducted or requisition is made: Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this[sub-section] pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate: [Provided also that the Central Government may by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso),specify the class or classes of cases 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.] [(2) If any proceeding initiated or any order of assessment or reassessment made under sub-section(1) has been annull ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng within the period of six assessment years [and for the relevant assessment year or years] referred to in this[sub- section] pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate: [Provided also that the Central Government may by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso),specify the class or classes of cases 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]:] [Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless- (a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that,- (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person ] [and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in sub-section (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 ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person] [and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person [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 referred to in sub-section (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] section 153A shall be construed as reference to the date of receiving the books of account or documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... introduced in Section 153C with the addition of sub-section (3) and which prescribed that nothing contained in the aforesaid provision would apply in respect of any search conducted or assets requisitioned on or after 01 April 2021. The aforesaid amendments appear to have been triggered by the schematic amendments which came to be introduced in Sections 145 to 151 and the procedure for reassessment inquiry being radically amended consequent to the introduction of Section 148A. The time limit for initiation of action also came to be amended with Section 149 being recast. For purposes which may be germane to the present batch, we also take note of the addition of the First and Second Provisos to Section 149 and which are extracted hereunder:- "149. Time limit for notice.- xxxx xxxx xxxx Provided that no notice under Section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if a notice under Section 148 or Section 153-A or Section 153-C 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 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing or books of account or documents are seized or requisitioned in case of any other person." 68. Although Section 148A made specific provisions for the assessee being placed on notice and being provided with the opportunity to explain why reassessment should not be initiated and any objections connected therewith being liable to be decided before reassessment was undertaken, reassessments triggered by a search were excluded from the ambit of that provision as would be manifest from a reading of the Proviso to Section 148A and which is couched in the following terms:- "148-A. Conducting inquiry, providing opportunity before issue of notice under Section 148. xxxx xxxx xxxx Provided that the provisions of this section shall not apply in a case where, - (a) a search is initiated under Section 132 or books of account, other documents or any assets are requisitioned under Section 132-A in the case of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under Section 132 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case where such search is initiated under section 132 or such requisition is made under section 132A; (b) in the case of an assessee, to whom any money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to; (c) in the case of an assessee, to whom any books of a account or documents seized or requisitioned pertains or pertain to, or any information contained therein, relates to, be extended by twelve months." 71. Of equal significance is Section 153(8) and which makes the following provisions:- "153. Time limit for completion of assessment, reassessment and recomputation xxx xxx xxx (8) Notwithstanding anything contained in the foregoing provisions of this section, sub-section (2) of section 153A or sub- section (1) of section 153B, the order of assessment or reassessment, relating to any assessment year, which stands revived under sub-section (2) of section 153A, shall be made within a period of one year from the end of the month of such revival or within the period specified in this section or sub-section (1) of section 153B, whichever is later." Sub-section (8) thus caters to situations where pending assessment or reassessment pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us puts in place certain preconditions which regulate assessment or reassessment for the four additional AYs' which would fall within the meaning of the expression "relevant assessment year" and fall beyond the six AYs' immediately preceding the AY relevant to the previous year which stands covered by Section 153A(1)(b). 74. Section 153C, as it stood on the date when the impugned notices came to be issued, proceeding along similar lines is statutorily proclaimed to override the provisions of Section 139, 147, 148, 149, 151 and 153. The said provision enables the AO of a non-searched party to commence proceedings for assessment or reassessment for six AYs' immediately preceding the AY relevant to the previous year in which search is conducted or requisition made and for the "relevant assessment year" as defined by Section 153A. The aforenoted provision comes into play the moment the AO of the searched person comes to discover that some money, bullion, jewellery, valuable article or thing seized or requisitioned belongs to or books of account, documents seized or requisition pertain or pertains to a person other than the person searched and covered by Section 153A. The AO of the sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the search, that the books of account or other valuable article or document belongs to the other person (person other than the one searched). He shall hand over the valuable article or books of account or document to the Assessing Officer having jurisdiction over the other person. Thereafter, the Assessing Officer having jurisdiction over the other person has to proceed against him and issue notice to that person in order to assess or reassess the income of such other person in the manner contemplated by the provisions of section 153A. Now, a question may arise as to the applicability of the second proviso to section 153A in the case of the other person, in order to examine the question of pending proceedings which have to abate. In the case of the searched person, the date with reference to which the proceedings for assessment or reassessment of any assessment year within the period of the six assessment years shall abate, is the date of initiation of the search under section 132 or the requisition under section 132A. For instance, in the present case, with reference to the Puri group of companies, such date will be January 5, 2009. However, in the case of the other person, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le him to proceed further in the case of the other person under Section 153C. Though there is no statutory requirement for the AO of such other person to record any satisfaction/reason before issuing notice under Section 153C and proceeding further, considering the above aspects, it is advisable for maintaining institutional memory that the AO records receipt of the seized material and the satisfaction from the AO of the searched person and such recording/noting may be kept in the assessment folder of such other person. In case, the AO of the searched person exercises jurisdiction over the other person also, appropriate referencing should be made in the relevant assessment records of such other person." 5. It may be noted that in the present case satisfaction note was prepared by the AO on 25th February 2010. Consequently, the finding of the ITAT in the present case that the assessment made under Section 143(1) of the Act for the AY 2009-10 was not valid, calls for no interference . No substantial question of law arises in the facts and circumstances of the present case. 6. Accordingly, the appeal is dismissed." 77. A more elaborate discussion with respect to the significance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 153C of the Act, a notice under that section could be issued only after two preceding conditions had been met. First of all, the Assessing Officer of the searched person would have to arrive at a satisfaction that document or asset seized does not belong to the person searched but to some other person and, secondly, the seized documents/assets are handed over to the Assessing Officer having jurisdiction over that person, that is, the person other than the one searched and to whom the seized documents/assets are said to belong. The relevant extract of the said decision is quoted below (page 117): "On a plain reading of section 153C, it is evident that the Assessing Officer of the searched person must be 'satisfied' that, inter alia, any document seized or requisitioned 'belongs to' a person other than the searched person. It is only then that the Assessing Officer of the searched person can handover such document to the Assessing Officer having jurisdiction over such other person (other than the searched person). Furthermore, it is only after such handing over that the Assessing Officer of such other person can issue a notice to that person and assess or rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other than the searched person. We are afraid that going through the contents of the satisfaction note, we are unable to discern any 'satisfaction' of the kind required under section 153C of the said Act." xxxx xxxx xxxx 19. The Allahabad High Court in the case of CIT v. Gopi Apartment (2014) 365 ITR 411 (All) has expressed a similar view in the following words (page 419): "A bare perusal of the provision contained in section 153C of the Income-tax Act leaves no doubt that, as is provided under section 158BD, where the Assessing Officer, while proceeding under section 153A against a person who has been subjected to search and seizure under section 132(1) or has been proceeded under section 132A, is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that the Assessing Officer shall proceed against each such other person and issue such other p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch under the second proviso to section 153A of the Act has to be construed as the date of handing over of assets/documents belonging to the assessee (being the person other than the one searched) to the Assessing Officer having jurisdiction to assess the said assessee. Further proceedings, by virtue of section 153C(1) of the Act would have to be in accordance with section 153A of the Act and the reference to the date of search would have to be construed as the reference to the date of recording of satisfaction. It would follow that the six assessment years for which assessments/reassessments could be made under section 153C of the Act would also have to be construed with reference to the date of handing over of assets/documents to the Assessing Officer of the assessee. In this case, it would be the date of the recording of satisfaction under section 153C of the Act, i.e., September 8, 2010. In this view, the assessments made in respect of the assessment years 2003-04 and 2004-05 would be beyond the period of six assessment years as reckoned with reference to the date of recording of satisfaction by the Assessing Officer of the searched person. It is contended by the Revenue that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search conducted on one person under Section 132, some documents or valuable assets or books of account belonging to some other person, in whose case the search is not conducted, may be found. In such case, the Assessing Officer has to first be satisfied under Section 153C, which provides for the assessment of income of any other person, i.e., any other person who is not covered by the search, that the books of account or other valuable article or document belongs to the other person (person other than the one searched). He shall hand over the valuable article or books of account or document to the Assessing Officer having jurisdiction over the other person. Thereafter, the Assessing Officer having jurisdiction over the other person has to proceed against him and issue notice to that person in order to assess or reassess the income of such other person in the, manner contemplated by the provisions of Section 153A. Now a question may arise as to the applicability of the second proviso to Section 153A in the case of the other person, in order to examine the question of pending proceedings which have to abate. In the case of the searched person, the date with reference to which the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reading of Section 153-C supports the interpretation which this Court adopts." 79. The fact that in the case of a Section 153C assessment, the starting point is ordained to be the handing over of books of account or documents or assets seized and that event constituting the point from which the preceding six AYs' or the "relevant assessment year" is to be computed stands reiterated by the Supreme Court in Vikram Sujitkumar Bhatia, as would be evident from the following paragraphs of the report:- "41. Thus, as per the proviso to Section 153C as inserted vide Finance Act, 2005, and the effect of the said proviso is that it creates a deeming fiction wherein any reference made to the date of initiation of search is deemed to be a reference made to the date when the Assessing Officer of the non-searched person receives the books of account or documents or assets seized etc. Thus, 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 Assessing Officer of the non-searched person only on 25.04.2017, which is subsequent to the amendment, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the Revenue, the block period for both the searched person and the "other person" would remain the same notwithstanding that there may be some delay in transmitting the documents recovered during the search which belong or pertain to the "other person" to the Assessing Officer of such other person." 82. However, the aforesaid submission came to be stoutly negated with the Court relying upon the decision rendered in RRJ Securities, which in turn relied upon the decision rendered in SSP Aviation as would be evident from the following extracts of that decision:- "11. Mr. Ashok Manchanda, learned Senior Standing counsel for the Appellant, sought to pursue this Court to reconsider its view in RRJ Securities (supra). The Court declines to do so for more than one reason. First, for reasons best known to it, the Revenue has not challenged the decision of this Court in RRJ Securities (supra) in the Supreme Court. The said decision has been consistently followed by the authorities under this Court as well as by this court. Thirdly, the recent amendment to Section 153 C(1) of the Act states for thefirst time that for both the searched person and the other person the period of reassess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person [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 referred to in sub-section (1) of section 153A] 13. There is thus an in-built mechanism in 153C(1) as to how the block period is to be formulated. No doubt, the portion within parenthesis has been inserted only with effect from 1- 4-2017 and has no application in the case of the petitioner seeing as the date of search in its case ranges between 21-3-2015 to 11-1-2016. However, one hardly need to refer this portion, since the construction of the block is detailed in the last portion of section 153C(1) that states 'for the relevant assessment year or years referred to in sub-section (1) of section 153(1). xxxx xxxx xxxx 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he end of the AY relevant to the year of search. In our considered opinion, the petitioners have correctly identified the aforesaid distinction as being crucial and determinative for the purposes of reckoning the six and the ten AY block period. G. COMPUTATION OF THE SIX AND TEN YEAR BLOCK IN THE PRESENT BATCH OF WRIT PETITIONS 86. In the present batch, List I pertains to writ petitions which have Satisfaction Notes recorded or Section 153C notices issued between the period 01 April 2021 to 31 March 2022. Undisputedly, the First Proviso to Section 153C, and which has been consistently recognized to also embody the commencement point for reckoning the six or the ten AYs', shifts the relevant date from the date of initiation of search or a requisition made to the date of receipt of books of account or documents and assets seized by the jurisdictional AO of the non-searched person. Consequently, the block of six or ten AYs' would have to be reckoned bearing the aforesaid date in mind. Although in the present batch of writ petitions, the date of actual handing over has not been explicitly mentioned in a majority of the writ petitions, learned counsels for respective sides had address ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY 2019-20 3 AY 2018-19 4 AY 2017-18 5 AY 2016-17 6 89. That takes us then to the issue of identifying the "relevant assessment year" for the purposes of computing the ten year block. Explanation 1 to Section 153A specifies the manner in which the entire ten AY period is to be computed. While the computation of six AYs' follows the position as enunciated and identified above, Explanation 1 prescribes that the ten AYs' would have to be computed from the end of the AY relevant to the FY in which the search was conducted or requisition made. The ten AY period consequently is to be reckoned from the end of the AY pertaining to the previous year in which the search was conducted as distinct from the preceding year which is spoken of in the case of the six relevant AYs'. 90. Viewed in that light, and while keeping the period of 01 April 2021 to 31 March 2022 as the constant, the relevant AY would be AY 2022-23. The ten AYs' would have to be computed from 31 March 2023 with the said date indubitably constituting the end of the AY relevant to the previous year of search. Viewed in light of the above, the block period of 10 AYs' would be as follows:- Computation of the ten-yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the previous year in which search is conducted. Applying this yardstick, the six years would go up to 2013-14. The search assessment year, namely, 2019-20 has to be excluded. This is because, the statute talks of the six years preceding the search assessment year. But, while computing the ten assessment years, the starting point has to be the end of the search assessment year. In other words, search assessment year has to be including in the latter case. It is not for me to fathom the wisdom of the parliament. I cannot assume that the amendment introduced by the Finance Act, 2017 intended to bring in four more years over and above the six years already provided within the scope of the provision. When the law has prescribed a particular length, it is not for the court to stretch it. Plasticity is the new mantra in neuroscience, thanks to the teachings of Norman Doidge. It implies that contrary to settled wisdom, even brain structure can be changed. But not so when it comes to a provision in a taxing statute that is free of ambiguity. Such a provision cannot be elastically construed. 11. One other contention urged by the standing counsel has to be dealt with. It is pointed out t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 153C read with Section 153A of the Act No. of years AY 2024-25 1 AY 2023-24 2 AY 2022-23 3 AY 2021-22 4 AY 2020-21 5 AY 2019-20 6 AY 2018-19 7 AY 2017-18 8 AY 2016-17 9 AY 2015-16 10 96. To recall, the petitions forming part of List I pertain to AYs' 2010-11, 2011-12 and 2012-13. So far as the aforenoted writ petitions are concerned, undisputedly AY 2010-11, 2011-12 and 2012-13 fall beyond the maximum period of ten AYs'. Since the ten AYs', when computed from the end of AY 2022-23 would terminate upon AY 2013-14, AYs' 2010-11, 2011-12 and 2012-13 would clearly fall outside the block period of ten AYs' and cannot legally or justifiably be reopened under Section 153C read with Section 153A of the Act. 97. Proceeding then to List II, we find that the petitions placed in that list pertain to cases where the hand over occurred in FYs 2022-23 and 2023-24. Consequently, the relevant AYs' would be AY 2023-24 and AY 2024-25 respectively. In light of the principles enunciated by us and which explain how the period of six and ten AYs' is liable to be computed, the reopening of assessments pertaining to AYs' 2010-11, 2011-12, 2012-13 and 2013-14 would clearly f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the returns of the assessee for the six or the ten AYs' are yet to be received or examined. 100. For this purpose, it is pertinent to note that clause (a) of the Fourth Proviso also uses the phrase "..income represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the relevant assessment years." The Legislature appears to have consciously used the expression "likely to" bearing in mind the provisional character of the opinion that the AO would have formed at that stage, the fact that returns of the assessee are yet to be received and scrutinised and all of the above contributing to a mere preliminary formation of opinion. 101. However, and at the same time, even if the identified asset at this stage be less than INR 50 lakhs, the AO must on the basis of cogent reasons so recorded be of the opinion that the ultimate computation of escaped assessment is likely to exceed INR 50 lakhs. The aforesaid satisfaction would have to be based on a valid assessment of the material gathered and the potentiality of the same being indicative of the escaped assessment exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 153C having come to an end prior to 01 April 2017, the respondents would have no jurisdiction to proceed under Section 153C. The latter submission was based on the contention of the petitioners that the extended period of ten AYs' having been introduced by virtue of the 2017 Amending Act would not be applicable to assessments which had attained closure prior to 01 April 2017. 104. The aforesaid submission proceeded in light of the amendments introduced in Sections 153A and 153C by virtue of the 2017 Amending Act and which added the concept of "relevant assessment year". Undoubtedly, prior to 01 April 2017, the respondents could have reopened assessments only for six AYs'. It was by virtue of the 2017 Amending Act that the period which could be subjected to Section 153A or Section 153C assessments came to be enlarged to cover ten AYs'. It is also pertinent to note that the concept of a search assessment now stretching up to ten AYs' was contemporaneously introduced both in Section 153A as well as Section 153C. The submission of the writ petitioners of the amended Section 153C not being applicable proceeds on account of the four additional AYs' which have now become liable to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at may be gathered in the course of a search would be wholly unrelated to the statutory timeframes which the Act erects for purposes of submission of returns and completion of assessments. A search assessment power is also clearly distinct and different from a reassessment that forms the subject matter of Sections 147 and 148. The reassessment power which stands comprised in Sections 147 and 148 is based upon the AO being satisfied that income susceptible to tax has escaped assessment. The reassessment power comprised in the aforenoted two provisions is based on information that may fall in the hands of the AO or where it come to form the opinion that income had escaped assessment. In terms of Section 148 as it stands presently, the AO is enabled to initiate reassessment only if it has information that income chargeable to tax has escaped assessment in the case of the assessee for the relevant AY. While under the earlier regime, and as Section 148 stood prior to its amendment on 01 April 2021, the expression 'information' had not been specifically defined, the power to reassess rested upon the AO having reason to believe that income chargeable to tax had escaped assessment. The una ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to Sections 153A and 153C as they stood immediately before the commencement of Finance Act, 2021. The concept of "relevant assessment year" and the block of ten AYs' was made part of those provisions way back in 2017 itself and thus formed an integral part of those provisions as on 01 April 2021. 109. Any doubt that could have possibly been harboured is in any case stand dispelled by the Second Proviso to Section 149 and which unambiguously proclaims that the provisions of that sub-section would not apply to searches conducted or requisitions made prior to 31 March 2021. Thus, all searches conducted prior to 31 March 2021 remained unimpacted by the Provisos' placed in Section 149 of the Act. These statutory amendments to Section 149 would have to be read in juxtaposition with Section 153C(3) which brought the curtains down upon search assessments liable to be made in accordance with the trinity provisions with effect from 01 April 2021. This, since Parliament by virtue of Finance Act, 2021 had merged the original reassessment power as well as those which may be predicated upon a search within the ambit of Section 148 and its family of provisions. 110. The contention with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e retrospectively for eight years in some cases and four years in others. In our opinion it had retrospective operation in respect of back years according to its own provisions. If the 1948 Amendment could be treated as enabling the Income Tax Officer to take action at any point of time in respect of back assessment years within eight years of March 30, 1948 then such cases were within his power to tax. We have such a case here in CA No. 509 of 1958 where the notice was issued in 1949 to the lady whose husband had remitted Rs 9180 to her from Bangkok in the year relative to Assessment Year 1942-43. That lady was assessable in respect of this sum under Section 4(2) of the Income Tax Act. She did not file a return. If the case stood governed by the 1939 Amendment the period applicable would have been four years if she had not concealed the particulars of the income. She had of course not deliberately furnished inaccurate particulars thereof. If the case was governed by the 1948 Amendment she would come within the eight-year rule because she had failed to furnish a return. Now, we do not think that we can treat the different periods indicated under Section 34 as periods of limitation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears from 30th March 1948." xxxx xxxx xxxx 95. We come now to the next amendment in 1956. It created a change of a far-reaching character by removing the limit of time for action where the sum likely to be taxed amounted to rupees one lakh or more either for a single year or for a group of years going back to the year ending on March 31, 1941. These cases were governed by the eight-year rule under the 1948 amendment. In other words, the eight-year period was retained for cases involving less than one lakh of rupees and the limit of time was removed for those cases in which the amount involved was one lakh rupees or more. We are not concerned at this moment with the sanctions necessary before action could be taken. That is a separate matter. If no sanction was obtained then the notice would be bad for that reason but not on the ground of a limit of time. What we have said above about the amendment of 1948 applies mutatis mutandis also to the amendment of 1956. That provision was also to operate retrospectively as has been stated by us earlier. There is good reason to think that this is the correct view because when the Calcutta High Court in the Debi Dutta Moody case held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not justify it being presumed that a corresponding vested right comes to be created in favour of an assessee. It was held that the assessment would remain conclusive as long as the law is not altered retrospectively or the disability removed. 113. Regard must also be had to the fact that C.B. Richards Ellis was a case which was dealing with a situation where the period within which a reassessment action could have been initiated came to be abridged. It was in the aforesaid context that our Court held that it would be the period applicable on the date of issuance of notice which would govern. The aforenoted decision assumes added significance in light of what was observed in para 12 of the report and where the Court laid emphasis on the distinction which must be recognised to exist between a liability to tax under the Act and the right to assess and which may culminate in the creation of a liability coupled with the power to enforce that liability. Although we have extracted the relevant paragraphs of that decision in the preceding parts of this judgment, for the sake of continuity, we deem it apposite to reproduce the following passage from that judgment hereunder:- "12. Law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. As held by us in the earlier parts of this decision, the reassessment provisions firstly incorporate strict time frames within which alone that power can be invoked. Neither Section 153A nor Section 153C embody a similar restraint. This obviously since those powers would be precipitated by a search, an event which is inherently beset by an element of unpredictability. Secondly, the Legislature has clearly and bearing mind the aforesaid aspect ordained that those two provisions would have overriding effect over the reassessment provisions. It would thus be clearly fallacious to introduce or read the restrictions placed in Sections 147 and 148 into the search assessment provisions with which we are concerned. 115. Sections 153A and 153C are provisions which are triggered by material that may be fortuitously recovered in the course of a search. Both those provisions override and are ordained to operate above and beyond the normal assessment or reassessment provisions. At the time when they were originally introduced in the statute in 2003, they enabled the AO to carry out an assessment exercise stretching over six AYs'. In 2017, the provisions came to be amended and the AO con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earched person instead of the actual date of search. Assailing this finding, the Department is in appeal before us and has proposed the following questions of law for our consideration: "2.1 Whether Ld. ITAT has erred in law by quashing the assessment on the ground that the date of search has to be reckoned from the date when books of accounts or other documents seized have been received by the Assessing Officer of the other person and not in accordance with the date of the search? 2.2 Whether Ld. ITAT has erred in law by ignoring that the implementation provisions have to be interpreted in accordance with the charging provision and there cannot be any anomalous situation created by the interpretation of the implementation provisions. The provisions under section 153A and 153C of the Act have to be construed in such a harmonious way that there will not be any different sets of 6 years for reopening of the assessments in case of the person searched and the other person?" 118. Having examined the issue of commencement point for the purposes of computation of the six and the ten year block under Section 153C of the Act in detail in the foregoing paragraphs of this judgment, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment thus came to be enlarged to stretch up to ten AYs'. The 2017 Amending Act also put in place certain prerequisite conditions which would have to inevitably be shown to be satisfied before the search assessment could stretch to the "relevant assessment year". The preconditions include the prescription of income having escaped assessment and represented in the form of an asset amounting to or "likely to amount to" INR 50 lakhs or more in the "relevant assessment year" or in aggregate in the "relevant assessment years". C. Section 153C, on the other hand, pertains to the non-searched entity and in respect of whom any material, books of accounts or documents may have been seized and were found to belong to or pertain to a person other than the searched person. As in the case of Section 153A, Section 153C was also to apply to all searches that may have been undertaken between the period 01 June 2003 to 31 March 2021. In terms of that provision, the AO stands similarly empowered to undertake and initiate an assessment in respect of a non-searched entity for the six AYs' as well as for "the relevant assessment year". The AYs', which would consequently be thrown open for assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of search. This, since undisputedly, Explanation 1 of Section 153A requires us to reckon it "from the end of the assessment year". This distinction would have to necessarily be acknowledged in light of the statute having consciously adopted the phraseology "immediately preceding" when it be in relation to the six year period and employing the expression "from the end of the assessment year" while speaking of the ten year block. G. Insofar as the thresholds put in place by virtue of the Fourth Proviso to Section 153A are concerned and the argument of the writ petitioners of the condition of INR 50 lakhs being an unwavering precondition, we find ourselves unable to sustain that submission bearing in mind the indubitable fact that proceedings for search assessment commence upon the issuance of a notice and the AO at that stage having really not had the occasion to undertake a detailed or in depth examination of the evidence collected or come to a definitive opinion with respect to the total income which may have escaped assessment. Since the computation and assessment of income that is likely to have escaped assessment would at this stage be provisional, it would be incorrect to st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 153A and 153C operating above and beyond the reassessment powers. K. The submission of closure and finality also fails to bear in consideration the indubitable fact that a search is an eventuality which is inherently unpredictable, a circumstance which would defy prophecy and it consequently being wholly irrational to read the time frames pertaining to reassessment as regulating or controlling the period within which an assessment predicated on that event may be initiated. It would be wholly illogical to conceive of a connection between the statutory time frames which are otherwise embodied in the Act and search assessments. In fact the acceptance of this submission would amount to virtually erasing the non obstante clause contained in Sections 153A and 153C. L. The legislative intent of those provisions having retroactive application is clearly evidenced from the statue declaring that they would apply to all searches conducted between 31 May 2003 to 31 March 2021, and the Fourth Proviso in unambiguous terms extending the applicability of those provisions to all searches conducted post 01 April 2017 and Sections 153A and 153C superseding the provisions for reassessment, other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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