INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Applicability of amended provisions of section 153C, w.e.f. 1-6-2015 -

AO had recorded satisfaction in terms of the amended provision of section 153C, which came into force on 1-6-2015. Assessee contended that the amendment dated 1-6-2015 confers a new power on AO and was, therefore, prospective in effect and hence, could not have been made applicable in the facts of the present case when the amendment was not in force as on the date of the search. Held: When the amended provisions of section 153C(1) have been brought into force with effect from 1-6-2015, it had to be construed that such amended provisions would apply to a search initiated under section 132 or in relation to books of account, other documents or any assets requisitioned under section 132A after 31-5-2015. Consequently in relation to searches carried out till 31-5-2015, it was not permissible for the AO to assume jurisdiction under section 153C as amended with effect from 1-6-2015. Thus notice issued under section 153C was hereby quashed and set aside.

REFERRED : Anilkumar Gopikishan Agrawal v. Asstt. CIT [R/Special Civil Application No. 12825 of 2018, dt. 21-4-2019]

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT