INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Document seized from third party containing information related to assessee but not belonging to assessee - Applicability of amendment brought w.e.f. 1-6-2015

During search in case of certain party, documents containing information related to assessee were found. AO taking plea of section 153C as amended with effect from 1-6-2015, invoked jurisdiction in assessee's case. Assessee contended that documents found in case of searched party did not belong to assessee.Held: In the instant case search took place on 5-1-2009. Notice to assessee was issued under section 153C on 19-11-2010. This was long prior to 1-6-2015 and, therefore, section 153C as it stood at the relevant time applied. In other words, the change brought about prospectively with effect from 1-6-2015 by the amended section 153C(1) did not apply to assessee's case. Therefore, the onus was on revenue to show that incriminating material/documents recovered during search 'belonged' to the assessee. It was not enough to show that documents either 'pertained to assessee or contained information that 'related to' the assessee. As revenue failed to do so, invocation of jurisdiction under section 153C qua assessee was invalid.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2005-06

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