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TMI Blog2024 (7) TMI 1575X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the A.Y. 2018-19 i.e. for the A.Y. 2017-18 to A.Y. 2012-13 only. Scope of amended provision of section 153A - Proceedings can be started for the assessment year beyond preceding six assessment years from the date of search or from the date of handing over the documents pertaining to other person but not later than ten assessment years, if the income that has escaped assessment is rupees fifty lakhs or more in aggregate. Thus, the proceeding could have been initiated in this case for the A.Y. 2011-12 only if the escaped income for this year or for the preceding 7th to 10th year was Rs. 50 Lacs or more. From the satisfaction as recorded by the AO for initiating proceeding u/s 153C of the Act, no such fact is evident. In fact, the addition made by the AO in the A.Y. 2011-12 was to the extent of Rs. 22.56 Lakhs only. Therefore, the condition of escapement of income of Rs. 50 Lacs or more was also not satisfied in this year. Therefore, no proceeding u/s 153C could have been initiated in this case for the A.Y. 2011-12. AO had no jurisdiction to initiate proceedings u/s 153C for the A.Y. 2011-12. Therefore, the additional ground taken by the assessee is allowed and the order of the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons issued by the Hon'ble Supreme court in the case of Calcutta Knitwears in Civil Appeal No 3958 of 2014 dated 12 March 2014 following CBDT circular No 24/2015 and thereby the entire assessment is bad in law. 4. On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) has erred in rejecting the argument of the Appellant to provide copies of statements recorded and also an opportunity for cross examination by the Appellant which is a legal right and hence, entire assessment order is liable to be quashed. 4. The assessee has also taken following additional grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the learned Assessing Officer (learned AO) has erred in initiating the assessment proceedings under section 153C of the Act without appreciating the fact that provisions of section 153C of the Act are not applicable in the present case on account of the following 1.1. Since satisfaction note by learned AO of the other person was recorded on 31 March 2018 and that notice was issued on 31 March 2018 i.e. previous year 2017-18 AY 2018-19, first proviso to section 153C of the Act provides that in case of search involvin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 153A of the Act is replaced by date of receiving the books of account or documents by the AO having jurisdiction over the other person, for initiating proceeding under Section 153C of the Act in the case of other person. According to Ld. AR, since the documents pertaining to the assessee were received by the AO in the F.Y. 2017-18 (as apparent from the satisfaction dated 31.03.2018 recorded by the AO) relevant to A.Y. 2018-19, the proceeding under Section 153C of the Act could have been initiated only for six years preceding the assessment year 2018-19. Thus, the relevant years for which the proceedings u/s 153C could have been initiated were A.Ys. 2012-13 to 2017-18. In view of this position, the Ld. AR assailed the jurisdiction of the AO to initiate the proceeding under Section 153C of the Act for the A.Y. 2011-12 as it was not within the permissible limit of six years from the year in which the documents pertaining to the assessee was received by the AO. In this regard, he relied upon the decision of Hon ble Supreme Court in the case of CIT vs. Jasjit Singh, [2023] 155 taxmann.com 155 (SC) and on the decision of Hon ble Delhi High Court in the case of PCIT vs. Ojju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be treated / deemed as date of search and six years preceding to that year will be construed as the relevant years for which proceedings under Section 153C of the Act can be initiated in respect of such other person. In this regard, it is relevant to consider the observation of the Hon ble Delhi High Court in the case of PCIT vs. Ojjus Medicare (P.) Ltd. (supra): The First Proviso to Section 153C introduces a legal fiction based on 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 point spoken of in Section 153A(1), while defining the point from which the period of the relevant assessment year is to be calculated, to the date of receipt of the books of accounts, documents or assets seized by the jurisdictional AO of the non-searched person. The shift of the relevant date in the case of a non-searched person being regulated by the First Proviso of Section 153C(1) is an iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase that in case of other person the period for which they were required to file returns, commenced only from date when materials were forwarded to their jurisdictional Assessing Officers. The Apex Court categorically held that the proviso to section 153C(1) catered not merely to question of abatement but also with regard to date from which six year period was to be reckoned, in respect of which returns were to be filed by third party whose premises were not searched and in respect of whom specific provision of section 153C was enacted. 12. In view of the above legal position, there is no ambiguity that for the proceedings under Section 153C of the Act, the year of search shall be substituted by the year of receipt of books or documents by the AO of the other person and thereafter the period of six years has to be counted backwards from that year. In the instant case, seized documents were received by the AO of the assessee in F.Y. 2017-18 relevant to A.Y. 2018-19. Therefore, the proceeding u/s 153C could have been initiated in the case of the assessee for the six years preceding the A.Y. 2018-19 i.e. for the A.Y. 2017-18 to A.Y. 2012-13 only. 13. As per amended provision of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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