INCOME TAX ACT, 1961

Section 153C read with section 153A

Search and seizure - Proceedings under section 153C - Applicability of amended provisions of section 153C, w.e.f. 1-6-2015 - Search and seizure conducted prior to 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 the AO and was, therefore, prospective in effect and hence, could not have been made applicable when the amendment was not in force as on the date of the search. The dispute in this case relates to applicability of the provisions of the section 153C which came to be amended with effect from 1-6-2015, to cases where search had been carried out prior to such amendment having come into force. Held: Under section 153C, ultimately, assessment or re-assessment is required to be made in accordance with section 153A. Thus, 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. The legislature had specifically made the amended provisions of section 153C applicable with prospective effect from 1-6-2015.

REFERRED : Anilkumar Gopikishan Agrawal v. Asstt. CIT [Special Civil Application No. 12825 of 2018] : 2019 TaxPub(DT) 4420 (Guj-HC)

FAVOUR : In assessee's favour

A.Y. :

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