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TMI Blog2024 (11) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee are allowed. - Shri Saktijit Dey, Hon ble Vice President And Shri M. Balaganesh, Accountant Member For the Assessee : Shri Ved Jain, Adv, Shri Aman Garg, Adv And Shri Aayush Garg, Adv For the Revenue : Shri Mritunjay Prasad Dwivedi, Sr. DR ORDER PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.1206/Del/2024 for AY 2021-24, arises out of the order of the Commissioner of Income Tax (Appeals)-30, New Delhi [hereinafter referred to as ld. CIT(A) , in short] in Appeal No. ITBA/APL/M/250/2023-24/1060222206(1) dated 29.01.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) dated 30.12.2022 by the Assessing Officer, DCIT, Central Circle-31, New Delhi (hereinafter referred to as ld. AO ). 2. The assessee has raised the following additional grounds of appeal before us vide letter dated 12.7.2024:- 12. On the facts and circumstances of the case, the learned AO has erred in considering the assessment year under consideration as the assessment year relevant to the previous year in which search was conducted and consequently passing the assessment order under section 143(3) of the Act instead of section 153C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 153C of the Act in the hands of the assessee on 3.10.2022 by the ld AO of the assessee. Hence the date of search in the case of the assessee becomes 3.10.2022 relevant to Asst Year 2023-24. The assessment year under consideration is Asst Year 2021-22. Hence any information pertaining / relating / belonging to Asst Year 2021-22 could be proceeded in the hands of the assessee only u/s 153C of the Act for which notice u/s 153C of the Act need to be issued to the assessee and assessment should be framed u/s 153C of the Act. This is in view of the fact that the ld AO of the assessee is only contemplating to use the search material of Shri Parveen Kumar Jain / Jainco Ltd in the hands of the assessee herein after recording clear satisfaction that the hisaab parchi image pertains to the assessee herein. But we find that the ld AO had framed the assessment of the assessee u/s 143(3) of the Act for Asst Year 2021-22. The assessee challenged the validity of assessment before the ld CIT(A). The ld CIT(A) had not given any finding with regard to this legal issue raised by the assessee. This appeal is against the order of ld CIT(A) dated 29.1.2024 challenging the confirmation of addition of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other hand, a plain reading of Section 153-C supports the interpretation which this Court adopts. 11. For the foregoing reasons, the Court finds no merit in these appeals; they are accordingly dismissed, without order on costs. 5. Hence we deem it fit to admit the aforesaid additional grounds and take up the same for adjudication first. In view of the aforesaid decision of Hon ble Supreme Court, the assessment for the Asst Year 2021-22 should have been framed only u/s 153C of the Act and not u/s 143(3) of the Act as the year of search duly varies for the assessee. We find that the Hon ble Jurisdictional High Court in the case of PCIT vs Ojjus Medicare Pvt Ltd and others reported in 2024 (4) TMI 268 (Del) dated 3.4.2024 had held as under:- D. The First Proviso to Section 153C introduces a legal fiction on the basis of which the commencement date for computation of the six year or the ten year block is deemed to be the date of receipt of books of accounts by the jurisdictional AO. The identification of the starting block for the purposes of computation of the six and the ten year period is governed by the First Proviso to Section 153C, which significantly shifts the reference poin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the decision of the Hon'ble Apex Court in the case of National Thermal Power Corporation {1998} 229 ITR 383 (SC) and is hereby adjudicated. 12. On perusal of the satisfaction note it reveals that same was recorded on 10-10-2022 by the AO after giving the findings that the seized assets and documents/digital data and information relates to assessee and it is a fit case for initiating proceedings u/s 153C r.w.s153A of the Act for the A.Y. 2015-16 to 2020-21. The AO has issued the notice u/s. 143(2) of the Act. On the similar facts, the coordinate Bench of the Tribunal in the case of Jasjit Singh (supra), it was held that the date of receiving of the seizes documents would become the date of search and six years period would be reckoned from this date. In the case of Jasjit Singh held as under :- 15. We find that an identical issue has been decided by Delhi Bench of the Tribunal in the case of DSL Properties P. Ltd. (supra) in favour of the assessee accepting the similar contention of the assessee. Similar view has been expressed by the Delhi Bench of the Tribunal in the case of V.K. Fiscal (supra) holding that the date of receiving of the seized documents would become the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment or reassessment of total six assessment years immediately preceding the assessment year relevant to previous year in which search is conducted. As per proviso to section 153C, the date of search is to be substituted by the date of receiving the books of account or documents or assets seized by the AO having jurisdiction over such other person. Ld. DR has stated that since the AO of the person searched and the AO of such other person was the same, no handing over or taking over of the document was required. That section 153C(1) and its proviso have to be read together in a harmonious manner. While interpreting section 153C, we have already held that for initiating valid jurisdiction u/s 153C, even if the AO of the person searched and the AO of such other person is the same, he has to first record the satisfaction in the file of the person searched and thereafter, such note alongwith the seized document/books of account is to be placed in the file of such other person. The date on which this exercise is done would be considered as the date of receiving the books of account or document by the AO having jurisdiction over such other person. Though while examining the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere can be a situation when during the search conducted on one person u/s 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 AO has to first be satisfied u/s 153C, which provides for the assessment of income of any other person, Le., 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 AO having jurisdiction over the other person. Thereafter, the AO 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 153 . 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 reas ..... 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