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TMI Blog2025 (2) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... six assessment years and therefore, claiming the same to be barred by limitation. First of all, we would adjudicate the ground raised by the assessee in the cross objection which is extracted below:- "1. That, on the facts and circumstances of the case, the Ld. CIT(A) has erred in considering the search date as 06.02.2019 for computing the period of six years as per section 153C(1) of the Act without considering the first proviso to section 153C of the Act which specifies that date of initiation of search /s 153C shall be the date on which the books of account or documents or asset seized is handed over to the AO having jurisdiction over such other person u/s 153C i.e. 26.09.2022 in the case of the assessee." 03. The facts in brief are that the assessee filed the return of income on 29.09.2015 showing total income of Rs. 3,60,000/-and current year loss at Rs. 19,34,040/-. The case of the assessee was selected for scrutiny and assessment was framed accordingly, u/s 143(3) of the Act on 05.05.2017, assessing the total income at Rs. 14,56,810/-. A search action u/s 132(1) of the Act was conducted on 06.02.2019, in case of Shri Avtar Singh Kochar, wherein certain incriminating mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t years, the date of initiation of search u/s 132 of the Act or making requisition u/s 132A of the Act shall be date of which the books of accounts or documents or asset are received from the ld. AO of searched person and i.e. in the present case the date of search was 26th September, 2022. Thereafter, the ld. Counsel for the assessee referred to the provisions of section 153C of the Act on or before and after amendment by finance Act 2017 and submitted that vide Finance Act, 2017, it was duly inserted in that section that six assessment years immediately preceding assessment year relevant to preceding year for which search is conducted or requisition was made. The ld. AR also placed before the Bench the memorandum explaining the position of the Finance bill and submitted that therein it is clearly stated that the amended provisions of Section 153A of the Act was applied where search u/s 132 of the Act was initiated or requisition u/s 132A of the Act was made on or after 1st April, 2017, and thereafter it was proposed to consequentially amend section 153C of the Act to provide for reference to the relevant assessment year as referred to Section 153A of the Act and this amendment al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sujitkumar Bhatia [2023] 453 ITR 417 (SC). The ld. AR therefore, prayed that since the seized materials having bearing on the determination of the total income of other person i.e. Shri Jaideep Halwasiya for the purpose of invoking provisions u/s 153C of the Act, were received by the ld. AO of the assessee vide e-mail on 26.09.2022, therefore six assessment years have to be computed from the assessment year 2023-24 relevant to F.Y. 2022-23, during which the email was received by the ld. AO of the assessee. The ld. AR therefore prayed that assessment year 2015-016 falls beyond the said period of six assessment years and the reopening u/s 153C of the Act was without jurisdiction and invalid and therefore, all the proceeding undertaken qua the said assessment year may kindly be quashed. 06. The ld. DR on the other hand relied on the order of the ld. lower authorities by submitting that the six assessment years which can be reopened u/s 153C of the Act were to be reckoned from the assessment year relevant to financial year in which the search was conducted u/s 132(1) of the Act or requisition was made u/s 132A of the Act and therefore, the appeal of the assessee may kindly be dismiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which immediately precede the AY so identified with reference to the previous year of search. It would thus lead us to conclude that it would be the six AYs' immediately preceding AY 2022- 23 which could have formed the basis for initiation of action under section 153C. Consequently, and reckoned backward, the six relevant AYs' would be:- Computation of the six-year block period as provided under section 153C of the Act No. of years AY 2021-22 1 AY 2020-21 2 AY 2019-20 3 AY 2018-19 4 AY 2017-18 5 AY 2016-17 6 Consequently, AY 2021-22 would become the first of the six preceding AYs' and would as per the table set out hereinabove terminate at AY 2016-17." 08. The Hon'ble Gujarat High Court in case of Mukesh Manekchand Sheth Vs. ACIT (supra) has laid similar ratio, wherein it has been held as under:- "5. Ultimately, the final order which came to be passed by the Court reads as under: "In the light of the above discussion, the petitions succeed, and are accordingly, allowed. The impugned notices issued under section 153C of the Income Tax Act, 1961 in each of the petitions are hereby quashed and set aside. In cases where the assessment orders are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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