9911796707
TMI Blog2025 (5) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) by raising as many as nine grounds of appeal challenging findings of CIT(A) on merits as well as on legal issues. The assessee has also raised an additional ground of appeal vide application dated 08.04.2024. The additional ground of appeal raised by the assessee reads as under:- "1. That having regard to the facts and circumstances of the case, impugned assessment order dated 27.12.2022 is bad in law in view of the latest Judgement of Jurisdictional High Court i.e. Hon'ble High Court of Delhi in the case of Pr. CIT vs. Ojjus Medicare Pvt. Ltd. & Ors., ITA No. 52/2024 & Ors., dated 03.04.2024 in which Hon'ble court have held that preceding ten years for reopening the case would be seen from the end of the assessment year in wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee asserted that in accordance with proviso to section 153C(1) of the Act, the deemed date of search in the case of other person (assessee) is the date of handing over of documents by the AO of searched person to the AO of other person. Therefore, in the case of assessee date of search would be 29.06.2021. In the instant case, assessment for AY 2012-13 was made u/s. 153C of the Act and addition of Rs.34 lakhs was made u/s. 69A of the Act. As per the provisions of section 153C of the Act, the AO can examine only upto six assessment years immediately preceding to assessment year in which search was conducted. In the instant case, assessment year 2012-13 falls beyond the period of six years, therefore, the AO could not have made assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. 5. Both sides heard, orders of the authorities below examined and the decisions on which the ld. Counsel for the assessee has placed reliance considered. The assessee by way of additional ground of appeal and ground no. 8 of appeal has assailed validity of assessment order as the same is stated to be barred by limitation. 6. In the case of assessee assessment for AY 2012-13 was completed under section 153C r.w.s 143(3) of the Act. The AO assumed jurisdiction u/s. 153C of the Act for AY 2012-13 on the basis of reasons recorded by the AO of the person search i.e. Prahlad Kumar Agrawal on 29.06.2021. A search action u/s. 132 of the Act was carried out in the case of Rakesh Jain Group on 02.11.2017, Prahlad Kumar Agrawal was also cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction over such other person". 8. A bare perusal of aforesaid proviso would make it unambiguously clear that the AO of the assessee assumed jurisdiction on the date when the AO of the searched person handed over books of account or documents or assets seized (in short 'incriminating material') to the AO of the assessee. In the present case, the said date is undisputedly 29.06.2021. Thus, in the case of assessee the year of search would be 2021-22 relevant to AY 2022-23. As per the provisions of section 153C(1) of the Act, the AO if satisfied that books of accounts for the document seized or requisitioned have a bearing on the determination of the total income of other person for six assessment years immediately preceding assessment year r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f material gathered in the course of the search and pertaining to the non-searched person occurred between 01 April 2021 to 31 March 2022, the same would essentially constitute FY 2021-22 as being the previous year of search for the purposes of the non-searched entity. As a necessary corollary, the relevant AY would become AY 2022-23. AY 2022-23 would thus constitute the starting point for the purposes of identifying the six years which are spoken of in Section 153C. The six AYs' are envisaged to be those 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 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of search. Viewed in light of the above, the block period of 10 AYs' would be as follows:- Computation of the sixyear block period as provided under Section 153C of the Act No. of Years AY 2022-23 1 AY 2021-22 2 AY 2020-21 3 AY 2019-20 4 AY 2018-19 5 AY 2017-18 6 AY 2016-17 7 AY 2015-16 8 AY 2014-15 9 AY 2013-14 10 11. The Hon'ble High Court after elaborate discussion and detailed findings summed up the law with regard to limitation for assumption of jurisdiction u/s. 153C of the Act as under:- "E. The reckoning of the six AYs' would require one to firstly identify the FY in which the search was undertaken and which would lead to the ascertainment of the AY relevant to the previous year of search. The block ..... X X X X Extracts X X X X X X X X Extracts X X X X
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