DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2 (2), CHENNAI, CHENNAI vs. SOUTHERN AGRIFURANE INDUSTRIES PVT LTD, CHENNAI

आयकर अपीलीय अिधकरण, ’सी’ यायपीठ, चे नई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘C’ BENCH: CHENNAI

ी एबी टी. वक
, ाियक सद एवं
एवं
एवं
एवं

ी अिमताभ शुा, लेखा सद के सम

BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER

आयकरअपीलसं./ITA No. 1163, 1256, 1257 & 1259/Chny/2025
िनधारणवष/Assessment Years: 2013-14 to 2016-17

The DCIT,
Central Circle-2(2),
Chennai.

v.
M/s. Southern Agrifurane –
Industries Pvt. Ltd.,
MGM Centre No.1,
9th Cross Street,
Dr. Radhakrishnan Salai,
Mylapore,
Chennai – 600 004. [PAN: AAGCS 9705 F]
(अपीलाथ/Appellant)

( यथ/Respondent)

आयकरअपीलसं./ITA No.1231, 1232, 1234 & 1236/Chny/2025
िनधारणवष/Assessment Years: 2013-14 to 2016-17
M/s. Southern Agrifurane –
Industries Pvt. Ltd.,
MGM Centre No.1,
9th Cross Street,
Dr. Radhakrishnan Salai, Mylapore,
Chennai – 600 004. v.
The DCIT,
Central Circle-2(2),
Chennai.

[PAN: AAGCS 9705 F]

(अपीलाथ/Appellant)

( यथ/Respondent)

Department by :
Mrs. C. Yamuna, CIT &
Mr. Bipin, CIT
Assessee by :
Mr. N. Arjun Raj, Advocate
सुनवाईक तार ख/Date of Hearing
:
08.10.2025
घोषणाक तार ख /Date of Pronouncement
:
21.11.2025

PER ABY T. VARKEY

These appeals p against the order of the 19, (hereinafter referre
20.02.2025 for the As 2013-14 to 2016-17 u/
referred to as ‘the Act‘).
2. Briefly stated the private limited comp manufacturing and sale the Act was conducted u which several material data, loose sheets, not the Revenue, the se suppression of income b vendors of old liquor
Consequently, the case
148 of the Act dated relevant AYs 2013-14 t filed in response to no ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 2 ::

आदेश / O R D E R
Y, JM:
referred by the assessee and the e Learned Commissioner of Income d to as ‘Ld.CIT(A)‘), Chennai, dated sessment Years (hereinafter referr
/s. 250 of the Income Tax Act, 19
.
e facts of the case are that, the any which is engaged in the of Indian made foreign liquor. A se upon the assessee on 15-06-2022, i viz., books of accounts, documen te books etc. was found and seized eized material inter alia contain by the assessee by debiting bogus bottles and transportation & log e of the assessee was reopened an 30-03-2023 was issued to the as to 2016-17. The details of the retur otice u/s 148 of the Act and the s

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
e Revenue are Tax (Appeals)- d 12.02.2025 &
red to as ‘AY‘)
61 (hereinafter assessee is a e business of arch u/s 132 of in the course of nts & electronic d. According to ned details of purchases from istics services.
d notice(s) u/s ssessee for the rn(s) of income subsequent re- assessment(s) complete
143(3)/147 of the Act a Asst Year
2013-14
2014-15
2015-16
2016-17
Aggrieved by the above the Ld. CIT(A).
3. Before the Ld. CI validity of the initiation for the impugned AYs 2
CIT(A) and accordingly of the Act was quashed
Ld. CIT(A), the Revenue appeal(s) is noted to h issues and the merits which was adjudicated juri iction of the AO t impugned AYs 2013-14
we consider it fit to deci
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 3 ::

ed by order(s) all dated 15-03-20
re as under: -
Income declared in return of income u/s 148
Total Inco
14
Rs. 31,23,13,310/-

Rs.31,12,72,770/-
Rs.57
Rs.34,93,08,960/-
Rs.61
Rs.45,46,48,400/-
Rs.69
e order(s), the assessee preferred a IT(A), the assessee had inter alia n of reassessment proceedings u/s 2013-14 to 2016-17 which was allo the re-assessment orders passed u d. Being aggrieved by the appellate e is now in appeal before us. The as ave assailed the Ld. CIT(A)’s order of the addition(s) as well. Since d by the Ld. CIT(A) strikes at th to have issued notice u/s.148 of t to 2016-17, with the consent of bo ide this legal issue first.

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
024 passed u/s ome assessed u/s 43(3)/147
7,33,60,374/-
1,74,24,524/-
9,79,90,661/- ppeal(s) before challenged the 147 of the Act wed by the Ld.
u/s 147/143(3) order(s) of the ssessee in their r on other legal the legal issue he root of the the Act for the oth the parties,

“Provided that no a case for the re of April, 2021, if 153C could not beyond the time l section (1) of thi may be], as they
Finance Act, 2021

p the Revenue’s appeal for AY 2
is seen that, before the Ld. CIT(A) hat, the notice issued u/s 148 of 2023 was beyond the time limit
9 of the Act and therefore it conte sued and all consequent actions d
The Ld. CIT(A) is noted to have all ssee by holding as under:- ndersigned has carefully examined the he primary contention of the appellant is th f the Act dated 30.03.2023 for the AY 2013
account of the provisions of clause (b) o
9 of the Act. The First Proviso to Section 1
o notice under section 148 shall be issued a levant assessment year beginning on or b
[a notice under section 148 or section 153
have been issued at that time on acco limit specified under the provisions of claus is section or section 153A or section 153C, y stood immediately before the commence
1:
amination of the assessment order it can dly relying on the provisions of the Act, as 2021 has issued a notice u/s 148 of the A ovisions of the Finance Act 2021 came int suant to the amendment the time limit fo the Act in cases where search proceedings ons of section 132 of the Act is governed b
As discussed supra, the First Proviso to Se that “no notice u/s 148 of the Act shall be r the relevant assessment year beginning
2021, if a notice u/s 148 or section 153
have been issued at that time on acco

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
013-14 in ITA
), the appellant the Act for AY t prescribed in ended that the deserves to be lowed this legal issue under hat the notice
3-14 is barred of sub-section 49 of the Act at any time in before 1st day
3A or section unt of being se (b) of sub-
C, as the case ement of the be seen that amended by Act for the AY to effect from r issuance of s are initiated by the section ection 149 of issued at any on or before
3A or section unt of being beyond the time section (1) of thi may be, as they
Finance Act, 2021
section 148 of t proceedings (i.e.
153A of the Act, a 6.3.6
It is sig section 153A of th

……
6.3.7
While g
“relevant assessm the assessment conducted or requ but not later than year relevant to requisition is mad
6.3.8
In the c carried out on 1
2023-24. The te
31.03.2024 (AY 2
end of the asses
Viewed in the lig would be as unde
Compu period of the A AY 202
AY 202
AY2021
AY 202
AY 201
AY 201
AY 201
AY 201
AY 201
AY 201
AY 201

ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 5 ::

limit specified under the provisions of claus s section or section 153A or section 153C y stood immediately before the commence
1. Therefore, for the AY 2013-14, since the the Income Tax Act was issued following
, on 15.06.2022), the timeline specified u as it existed prior to 01.04.2021, would cle gnificant to bring on record the relevant he Act as it stood prior to 01.04.2021 as un going through the Explanation 1, it can be ment year” shall mean an assessment ye year relevant to the previous year in wh uisition is made which falls beyond six asse n ten assessment years from the end of th o the previous year in which search is de.
case of the Appellant, the search u/s 132 o
15.06.2022 and the relevant assessment en-assessment year should have been co
2023-24) with the said date indubitably co ssment year relevant to the previous ye ht of the above, the time line of ten asse er.
tation of the ten-year as provided u/s 153A
Act
Sequence of the year
3-24
First year
2-23
Second year
1-22
Third Year
0-21
Fourth Year
9-20
Fifth Year
8-19
Sixth Year
7-18
Seventh Year
6-17
Eight Year
5-16
Ninth Year
4-15
Tenth Year
3-14
Eleventh Year

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
se (b) of sub-
, as the case ement of the e notice under g the search under section early apply.
provisions of nder.
seen that the ear preceding hich search is essment years he assessment conducted or of the act was would be AY omputed from onstituting the ear of search.
essment years

ng this test on the aforesaid precepts,
2023-24 would form the first year of the mum period of ten AYs’ terminating in Y 2013-14 is beyond the purview of prov s affirmed by the Hon’ble Madras High Cou
Vs. ACIT Central -1, Trichy in WP No. (MD
03.2021 wherein the Madurai bench of rt has rightly expounded the legal position o be accorded to the identification of ten spoken off in section 153A of the Act.
r the Divisional bench of the Hon’ble Delhi
T Vs. Ojjus Medicare Private Limited and elying on the decision of the Hon’ble Madr
Saifullah Vs. ACIT Central -1, Trichy in WP ted 24.03.2021 has made a detailed analys how to compute the ten year block after i ment as defined under Explanation 1 to se resent case, the AO has attempted to re-op alls beyond ten years from relevant AY 202
2022-23) in which the search was cond
2022) and therefore lacked juri iction to ct for the AY 2013-14. dersigned is the view that the AO should s empowered under the provisions of Secti f the Act to assess or reassess the income or years' and for this purpose. In such a si uri iction to issue a notice u/s 148 of t issued, would be void ab initio for pa case of Hansraj Gordhandas v. H.H.
ral Excise & Customs, Surat and Ors, AIR
253 the observations of Lord Watson in 1897) AC 22) was referred to with the obse e legislature is a common but very slip y understood may signify anything fr sitive enactment to speculative opinion as ably would have meant although there ct it. in a Court of Law or Equity, what th one or not can only be legitimately ascertai sen to enact, either in express wards or b mplication.”
ng the above principle, it becomes clear tha of the Act understood in the proper conte
Legislature evident. It clearly sets out t

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
it would be e ten AYs’ and AY 2014-15. visions of the urt in the case
D)No. 4327 of f the Hon’ble and the legal n assessment
High Court in others dated as High Court
P No. (MD)No.
sis and has set dentifying the ection 153A of pen for the AY
3-24 from the ducted on the o issue notice have satisfied ion 148 of the e for 'relevant ituation, when the Act and a atent lack of Dave, Asst.
1970 SC 755
Salomon vs.
ervations are:
ppery phrase, rom intention s to what the has been an he Legislature ined from that by reasonable at the Section ext makes the the conditions when a notice u
'relevant assessm
6.3.14
A juris which depends a tribunal or an au fact which must e particular case. M juri ictional fac juri iction in res on it and if by depends the cour vitiated.
6.3.15
In 'Hals the juri iction of state of affairs, t or collateral to th by an inferior t
Tribunal has to m ruling on the p conclusive.
6.3.16
In the (2006) 205 CTR (
"A "juri ictional or an assumes ju one on existence court, a tribuna administrative ag does not exist, t authority wrongly questioned by a erroneously assu can confer upon i
6.3.17
The ex the exercise of p lawfully. When th to proceed with provisions of law forth u/s 148 r.w
The AO is requir specific condition this issue, and absence of these relevant assessm can the AO lawfu
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 7 ::

u/s 148 r.w.s 153A of the Act can be is ment year or years'.
dictional fact is one on existence or non ssumption or refusal to assume juri ictio thority. In 'Black's Legal Dictionary, it is e exist before a court can properly assume ju
Mistake of fact in relation to juri iction ct. No statutory authority or tribunal pect of subject matter which the statute do deciding erroneously the fact on whic rt or tribunal exercises the juri iction, the sbury's Laws of England' it has been state f a tribunal is dependent on the existence o hat state of affairs may be described as p he merits of the issue. If, at the inception tribunal, a challenge is made to its jur make up its mind whether to Act or not a reliminary or collateral issue; but that case of Arun Kumar & Ors. vs. Union of (SC) 193: (2006) 286 ITR 89 (SC) it has be fact" is a fact which must exist before a C ri iction over a particular matter. A juri e or non-existence of which depends jur al or an authority. It is the fact upo gency's power to act depends If the juris the court, authority or officer cannot act.
y assumes the existence of such fact, the writ of certiorari. The underlying princip uming existence of such juri ictional fact, itself juri iction which it otherwise does no istence of a 'juri ictional fact' is the sine power. In its absence, the power cannot he juri ictional fact is established, the AO the case and make decisions in accorda
. In this context, the fulfillment of the pre w.s 153A of the Act is considered a 'juri red to carefully examine and ascertain w s are satisfied before proceeding. Only afte recording a clear finding regarding the e conditions, can the AO issue a notice u/
ment year. Only upon satisfying this crucia lly proceed to assess the income of the ass

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ssued for the n-existence of on by a court, explained as a uri iction of a is an error of can assume oes not confer ch juri iction en the order is ed that where of a particular preliminary to, of an inquiry ri iction, the nd can give a ruling is not f India & Ors.
een held:-
Court, Tribunal dictional fact is ri iction of a on which an ictional fact
If a Court or order can be ple is that by , no authority ot posses e qua non for be exercised is empowered ance with the conditions set dictional fact.'
whether these er deciding on presence or /s 148 for the al prerequisite sessee for the relevant year, as for validly initiatin
6.3.18
Such co
The AO issuing th is valid because a the Act are fulfille the 'relevant ass rather it sets in m of a civil liability a on the assessee whether the cond that he may, in a the condition pre notice issued be validity. This is p the AO before a provided to the a AO.
6.3.19
In the AY 2013-14 whic relevant assessm the assessee (15
cannot travel be provisions of se grounds raised by notice u/s 148 of the Act for the AY
5. Assailing the abo submitted that, the no was well within the per the relevant AY 2013-14
was unjustified in holdin
According to him, even basis of the first proviso was not entitled to a ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 8 ::

s the presence of the juri ictional fact is ng the assessment process u/s 147 of the A onclusion of satisfaction must manifest its he notice must be able to justify himself t all conditions mentioned in the section 148
ed. This is all the more so because issuing sessment year or years' is not a ritualis motion the process which can culminate in and may even invite criminal prosecution fo e. It is the vested right of an assessee ditions precedent to issue of notice are satis a situation where according to his knowled cedent to issue of notice are not satisfied, efore appropriate judicial forum as rega possible only if the satisfaction is properly a notice is issued u/s 148 r.w.s 153A of assessee to enable him to rebut the satis present case, the AO has attempted to re ch falls beyond the time line of 10 year fro ent year 2023-24 in which the search was .06.2022). The undersigned is of the view yond a period of ten assessment years t ction 147 of the Act. Accordingly, all t y the appellant upon the issue of legality f the Act to initiate assessment proceedin
Y 2013-14 are here by treated as allowed.”
ove action of the Ld. CIT(A), the tice issued u/s 148 of the Act dat riod of ten (10) assessment years f
4 and, he therefore contended that, ng the impugned notice to be barre if the reassessment action was to b o to Section 149 of the Act then als any relief, as the notice was w

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
indispensable
Act self in writing.
that his action r.w.s 153A of of a notice for stic formality; nto imposition or tax evasion e to examine sfied or not so dge and belief challenge the ards its legal y recorded by f the Act and sfaction of the e-open for the om end of the conducted on w that the AO to invoke the the additional of issuance of gs u/s 147 of e Ld. CIT, DR ted 30.03.2023
from the end of , the Ld. CIT(A) d by limitation.
be tested on the so the assessee well within the permissible time limit u stood prior to introducti
6. Per contra, the L
CIT(A) by relying on th
Court in the cases taxmann.com 470) an 7. Heard both the impugned legal issue, le
149 of the Act as it stoo
“1) No notice u assessment year,
(a) if three years year, unless the c
(b)if three years, end of the releva his possession bo reveal that the in (i) an asset;
(ii) expenditure in occasion; or (iii)an entry or en which has escape lakh rupees or mo
Provided that no a case for the rel of April, 2021, if ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 9 ::

nder the provisions of Section 148, on of the Finance Act, 2021. Ld. AR supported the above findin he judgments rendered by the Hon of KAD Housing Pvt Ltd Vs nd Dinesh Jindal Vs DCIT (469 IT parties. Before we proceed to et us first have a look at the provis od as on 1st April 2022, which read a under section 148 shall be issued for ,—
have elapsed from the end of the relevan case falls under clause (b);
, but not more than ten years, have elap ant assessment year unless the Assessing O ooks of account or other documents or ev come chargeable to tax, represented in the n respect of a transaction or in relation to ntries in the books of account, ed assessment amounts to or is likely to am ore:
notice under section 148 shall be issued a levant assessment year beginning on or be a notice under section 148 or section 153

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
153A etc. as it ngs of the Ld.
n’ble Delhi High s DCIT (168
TR 32).
examine the sions of Section as under:- the relevant t assessment sed from the Officer has in vidence which e form of—
o an event or mount to fifty at any time in efore 1st day
3A or section 153C could not beyond the time section (1) of thi may be, as they
Finance Act, 2021
Provided further t a case, where a section 153A, is under section 13
requisitioned und
2021:
Provided also tha as per this sectio as per show-caus period during wh order or injunctio
Provided also tha referred to in the available to the A of section 148A i extended to seve section shall be d
Explanation.—For shall include imm and securities, loa
(1A) Notwithstan income chargeab expenditure in re in clause (b) of investment in su occasion has bee relevant to the as (b) of sub-sectio every such ass recomputation, as (2) The provision subject to the pro
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 10 ::

have been issued at that time on acco limit specified under the provisions of claus s section or section 153A or section 153C y stood immediately before the commence
1:
that the provisions of this sub-section shal notice under section 153A, or section 15
required to be issued in relation to a sea
2 or books of account, other documents o der section 132A, on or before the 31st d at for the purposes of computing the period on, the time or extended time allowed to t se notice issued under clause (b) of section ich the proceeding under section 148A is on of any court, shall be excluded:
at where immediately after the exclusion e immediately preceding proviso, the period
Assessing Officer for passing an order und s less than seven days, such remaining pe en days and the period of limitation und deemed to be extended accordingly.
r the purposes of clause (b) of this sub-sec movable property, being land or building or ans and advances, deposits in bank accoun nding anything contained in sub-section (1
ble to tax represented in the form of elation to an event or occasion of the valu sub-section (1), has escaped the assessm uch asset or expenditure in relation to su en made or incurred, in more than one pr ssessment years within the period referred on (1), a notice under section 148 shall b sessment year for assessment, reass s the case may be.]
ns of sub-section (1) as to the issue of no ovisions of section 151.”

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
unt of being se (b) of sub-
, as the case ement of the l not apply in 3C read with arch initiated or any assets day of March, d of limitation the assessee, n 148A or the stayed by an of the period d of limitation er clause (d) eriod shall be der this sub- ction, "asset"
both, shares nt.
1), where the an asset or ue referred to ment and the uch event or revious years d to in clause be issued for sessment or otice shall be 8. Reading of the a empowered to reopen years from the end of t
The AO is also entitled t years but not more th assessment year, but fo in his possession book reveal that income rep entry in books of ac quantum is Rs.50 lacs o proviso to Section 149( the present case. The i analysis as follows: (i) n be issued at any time
April 2021; (ii) if it is b issued because of the "
153A, 153C of the old r of AO is curtailed to issu
AY 2021-2022 and earli notice continued to exis the old regime. It is w according to the law ex
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 11 ::

bove provision reveals that, the A any relevant assessment year w the relevant assessment year [Sect to issue notice u/s 148 of the Act be han ten (10) years from the end o or that, he is required to demonstra ks of accounts or documents or e presented in form of asset or expe counts, has escaped assessment or more [Section 149(1)(b)]. We no (1)(b) of the Act, which is of utmo ngredients of the proviso can be b no notice under section 148 of the n for an assessment year beginning barred at the time when the notice
"time limits specified under the pro regime. Hence, in terms of the prov ue notice under Section 148 of the ier years only if the time limit for is st under section 149(1)(b), 153A(1) ell settled in law that, notices hav xisting on the date the notice is iss

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
AO is ordinarily ithin three (3) ion 149(1)(a)].
eyond three (3) of the relevant ate that he has evidence which enditure or any , whose likely ow come to the st relevance to roken down for new regime can on or before 1
is sought to be ovisions of"148, iso, the powers new regime for ssuance of such )(b) or 153C of e to be judged ued. Under the new regime, time limit fulfillment of condition
However, the first prov limit prescribed in the 2021-22 and onwards a regime by Finance Act, limits under the old 14
has since merged and/o
148/148A regime]. Hen the AO is required to fi have been reopened i
148/149(1)(b) regime could have been reop erstwhile Section 153A answer to the aforesaid reopen the relevant as under the old regime a regime, that, the AO assessment year unde
Section 149(1)(b) of the ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 12 ::

of ten (10) years has been prescr ns laid down in Section 149(1)(b viso to Section 149(1)(b) ensures new regime shall apply prospective and that, the AYs prior to the intro
2021 shall continue to be govern
8 regime or Section 153A/153C of or be substituted in a single all-enc ce, in order to reopen any AY prior rst ascertain as to, whether the rel in light of the time limit laid do
[non-search cases] or whether th pened in terms of the time lines
A(1)(b) or 153C of the Act [search d question is in affirmative viz., the ssessment year [AY 2021-22 and at the time of issuance of notice is legally empowered to reopen er the new 148 regime, in terms e Act.

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ribed subject to b) of the Act.
that, the time ely i.e. from AY oduction of new ed by the time the Act [which compassed new to AY 2021-22, levant AY could own in the old he relevant AY s contained in h cases]. If the AO can validly earlier years]
under the new such relevant of proviso to 9. The above analog
Hon’ble Supreme Court
46) while interpreting amended by the Finan that, the first proviso to whether the time limit regime continues to exi
It was accordingly hel regime cannot be issu erstwhile 149(1)(b) of t year [AY 2021-22 and e of the notice. The Hon limit of ten years presc applies prospectively. T way of an illustration, v
2013, the ten year per the six year period exp
Section 149(1)(b) of th power to reopen asses assessment amounted the retrospective opera of the assesses.
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 13 ::

y is found to have been expressly la in the case of UOI Vs Rajeev Ba the provisions of Section 149 o ce Act, 2021. The Hon’ble Apex C o Section 149(1)(b) requires the de t prescribed under section 149(1) st for the assessment year 2021-20
d that, a notice under Section 14
ued, if the period of six years[a the Act] from the end of the releva earlier year(s)] has expired at the ti
’ble Supreme Court thus held that cribed under section 149(1)(b) of t
This was explained by the Hon’ble viz., For example, for the assessme riod would have expired on 31 Mar pired on 31 March 2019. Without he new regime, the Revenue could ssments for the year 2012-2013
to Rupees fifty lakhs or more. The ation of Section 149(1)(b) to protec

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
aid down by the nsal (469 ITR of the Act, as Court explained etermination of )(b) of the old
022 and before.
48 of the new as provided in ant assessment ime of issuance
, the new time he new regime
Apex Court by ent year 2012- rch 2023, while the proviso to d have had the if the escaped e proviso limits ct the interests

ant to bear in mind that, the prov ct was amended by the Finan ffect from 01.04.2021, to align ction 149(1)(b) to the earlier time li were earlier governed by 153A/15
y, the original proviso to Section ct, 2021] and the amended prov reproduced below:- ection 149(1)(b) [as inserted by FA 2021]
notice under section 148 shall be issued a levant assessment year beginning on or be such notice could not have been issued at beyond the time limit specified under the b-section (1) of this section, as they stood encement of the Finance Act, 2021:
Section 149(1)(b) [as amended by FA notice under section 148 shall be issued a levant assessment year beginning on or be a notice under section 148 or Section 153
have been issued at that time on acco limit specified under the provisions of claus his section or Section 153-A or Section 1
they stood immediately before the comm
2021:
noted to have explained the above nance Bill, 2022. It was inter alia initiated under section 132 of the & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
viso to Section ce Act, 2022
the timelines imits for search
53C of the Act.
149(1)(b) [as viso to Section at any time in efore 1st day that time on provisions of immediately
2022 w.r.e.f at any time in efore 1st day
-A or Section ount of being se (b) of sub-
53-C, as the mencement of amendment in stated that, in Act orbooks of account, other docume
132Aof the Act, on reassessment is now to Act after the Finance Ac inadvertent drafting err with the intent of the s no notice under section relevant assessment ye a notice under section section 153C[search re been issued at that ti specified under the pro
149 or section 153A or immediately before the 12. Hence, in light of Vs Rajeev Bansal (su made by Finance Act, 2
the AYs prior to AY 202
only if such AY [in non reopened under the o
Section 149(1)(b)], at t
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 15 ::

nts or any assets are requisitioned or after 1st April, 2021, the a be made under sections 143 or 14
ct, 2021. According to the Legislatu rors in Section 149 and that to align section, the proviso was amended t
148 shall be issued at any time in ar beginning on or before 1st day o n 148[non-search matters] or se elated matters after 01.04.2021] c me on account of being beyond ovisions of clause (b) of sub-section section 153C, as the case may be commencement of the Finance Act, f the judgment of Hon’ble Supreme upra) and having regard to the abo
022, the position which emerges is 21-22 can be reopened under the ne n-search matters] was otherwise ca ld regime [six years as laid dow the stage of issuance of notice. How

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
d under section assessment or 4 or 147 of the ure, there were n the provisions to provide that, n a case for the of April, 2021, if ection 153A or could not have the time limit n (1) of section , as they stood
2021. e Court in UOI ove amendment that, ordinarily ew 148 regime, apable of being wn in erstwhile wever, in cases where search has been document or informatio which relates to the reassessment which wa the Act, is now required the Act. The timelines f
22, would be governed and therefore the notice can be issued, only if su in terms of Section 153
of Finance Act, 2021], regime.
13. Having taken no timelines for reopening revert back to the facts us, search upon the therefore in terms of t income of the assesse accordance with the new
However, as because th
AY 2021-22; we are re
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 16 ::

n conducted on or after 1st April n has been found & seized in the co e assessee [third party], the a as earlier required to be made u/s d to be made under Section 143 or for search related cases qua AYs pri d by first proviso to Section 149(1
e for reopening the assessment u/s uch AY could have otherwise been v
A/153C of the Act [as it stood prior at the time of issuance of notice ote of the legal position of law of assessment under the new 148 r s of the present case. In the prese assessee was conducted on 15
he second proviso to Section 149
ee is required to be assessed or w 148 regime, as introduced by Fina he relevant AY involved is AY 2013-1
equired to test the time limit for re

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
2021 or where ourse of search assessment or s 153A/153C of r 144 or 147 of ior to AY 2021-
)(b) of the Act
148 of the Act validly reopened r to introduction under the new regarding the regime, we now ent case before
5-06-2022 and of the Act, the reassessed in ance Act, 2021. 14 viz., prior to eopening of the relevant AY 2013-14
149(1)(b) of the new r section 148 of the new principles as discussed ascertained whether AY provisions of Section 15
30.03.2023 and only if have validly issued noti this, let us now have a the Act, which reads as “Notwithstanding
148, section 149, where a search is documents or any 31st day of May,
Assessing Officer
(a) issue notice t period, as may be of each assessme relevant assessm prescribed form a such other partic
Act shall, so far return required to (b) assess or r immediately prec year in which su the relevant asse
….
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 17 ::

on the tenets of the first prov regime, at the stage of issuance o regime i.e. 30.03.2023. Having reg in preceding paragraphs, it is first
Y 2013-14 could have been reopened
53A of the Act on the date of issuanc f the answer is in affirmative that ice u/s 148 of the Act under the n look at the relevant provisions of S under:- anything contained in section 139, section , section 151 and section 153, in the case o s initiated under section 132 or books of a y assets are requisitioned under section 13
2003 but on or before the 31st day of Marc shall—
to such person requiring him to furnish e specified in the notice, the return of incom ent year falling within six assessment year ment year or years referred to in clause and verified in the prescribed manner and culars as may be prescribed and the prov as may be, apply accordingly as if such r o be furnished under section 139; reassess the total income of six asses ceding the assessment year relevant to ch search is conducted or requisition is m ssment year or years:

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
iso to Section of notice under ard to the legal required to be d under the old ce of notice i.e.
, the AO could ew regime. For Section 153A of n 147, section of a person52
ccount, other
32A after the ch, 2021, the within such me in respect rs and for the e (b), in the setting forth visions of this return were a sment years the previous made and for Provided also tha issued by the A years unless—
(a) the Assessing documents or evi form of asset, wh amount to fifty la in aggregate in th
(b) the income r assessment for su
(c) the search un
132A is made on Explanation 1.—F
"relevant assessm the assessment y conducted or req years but not la assessment year conducted or requ
14. It is seen that, S undertaken "in respec assessment years" refe
153A(1) provides for th
"previous year in which Hence, the block of six
"immediately preceding year" in which the searc as the search occurred
March 2023; FY 2022-
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 18 ::

at no notice for assessment or reassessm ssessing Officer for the relevant assessm
Officer has in his possession books of acco dence which reveal that the income, repre hich has escaped assessment amounts to akh rupees or more in the relevant assess he relevant assessment years; referred to in clause (a) or part thereof uch year or years; and der section 132 is initiated or requisition u or after the 1st day of April, 2017. For the purposes of this sub-section, th ment year" shall mean an assessment ye year relevant to the previous year in wh quisition is made which falls beyond six ater than ten assessment years from the r relevant to the previous year in whic uisition is made.”
Section 153A envisages that an ass ct of each assessment year fall rred to in clause (b) thereof. Clause e identification of the six AYs with r h the search is conducted or requis x AYs is to be identified commencin g the assessment year relevant to ch may have been conducted. In th on 15.06.2022 i.e., between 1st Ap
23 relevant to AY 2023-24 would

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ment shall be ment year or ount or other esented in the or is likely to ment year or has escaped under section e expression ear preceding ich search is x assessment e end of the ch search is sessment to be ling within six e (b) of Section reference to the sition is made".
ng from the AY o the previous e present case, pril 2022 to 31st constitute the previous year of search immediately precede th search. Consequently, a 2022-23, 2021-22, 20
important to bear in m search assessment to a concept of "relevant ass
1 to Section 153A(1) a assessment years but n of the assessment year conducted. Accordingly, end of the AY relevant requisition made [AY 2
Explanation 1 to Sectio block period from the conducted whereas the 153A(1)(b) comprises search. To put it simply ascertaining the six AYs the Act. However, havin
Section 153A(1), since the end of the relevant
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 19 ::

h and the six AYs as envisaged a he AY so identified with reference and reckoned backward, the six AYs
020-21, 2019-20, 2018-19 & 2
mind that, the Finance Act, 2017
an additional four AYs with the intr sessment year", which was defined as being the period which would f not later than ten assessment year relevant to the previous year" in wh
, the ten AYs would have to be com to the FY in which the search wa
2023-24, in the present case]. It on 153A(1) requires computation e end of the relevant AY in whic e 6-year block period for the purpo of the six relevant AYs ‘precedin y, the year of search is considered s to be reopened in terms of Section ng regard to the language used in E the 10-year block period is to be t AY in which search was conducte

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
re those which to the date of s would be, AYs
2017-18. It is 7 stretched the oduction of the by Explanation fall beyond "six rs from the end hich search was mputed from the s conducted or t is seen that, of the 10-year ch search was oses of Section g’ the year of as year ‘0’ for n 153A(1)(b) of Explanation 1 to computed from ed, the year of search [AY 2023-24 in accordingly the 10-year present case therefore, first year of the block shall terminate in AY 2
Ld. CIT(A)’s computati
153A of the Act, which below:-
Compu year p u/s 15
AY 202
AY 202
AY2021
AY 202
AY 201
AY 201
AY 201
AY 201
AY 201
AY 201
AY 201
15. The above tabulat juri ictional Hon’ble M
(WP(MD) No. 4327 of “9. Explanation-I assessment years end of the asse search is conduct that since search
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 20 ::

n present case] is considered to b r block period is ascertained. In the , it is manifest that, AY 2023-24 w of ten AYs and the maximum per
2014-15. We are therefore in agree on of ten-year block period in te h for the sake of convenience, is s utation of the ten- eriod as provided
53A of the Act
Sequence of the year
3-24
First year
2-23
Second year
1-22
Third Year
0-21
Fourth Year
9-20
Fifth Year
8-19
Sixth Year
7-18
Seventh Year
6-17
Eight Year
5-16
Ninth Year
4-15
Tenth Year
13-14
Eleventh
Year tion is found to be supported by the Madras High Court in the case of A f 2021) wherein it was held as follo
I is clear as to the manner of computatio s. It clearly and firmly fixes the starting po ssment year relevant to the previous y ted or requisition is made. There cannot b was made in this case on 10.04.2018, the & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
be year ‘1’ and e context of the would form the iod of ten AYs'
ement with the rms of Section set out herein- decision of the A.R. Safiullah ows:- on of the ten oint. It is the ear in which be any doubt e assessment year is 2019-2
31.03.2020. The the said date i.e., assessment year as follows :
1st Yea
2nd Yea
3rd Yea
4th Yea
5th Yea
6th Yea
7th Yea
8th Yea
9th Yea
10th Yea
The case on hand year outer ceiling the tenth year ca to the previous y law can go up to statute is clear construed and th appended to statu
10. In the case computing the six
Section 153A(1)( reassess the tot assessment year conducted. Apply
14. The search a This is because, assessment year starting point has words, search as ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 21 ::

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
2019-20 is ckwards from be the search years will be 9-20
8-19
7-18
6-17
-16
4-15
-14
2-13
-12
0-11
eyond the ten minal point is year relevant ng arm of the nd. When the o be strictly anatory notes one mode of he ten years.
all assess or receding the ch search is o up to 2013- be excluded.
ng the search nt years, the year. In other atter case. It is not for me to f that the amendm bring in four mor within the scope particular length, mantra in neuros implies that cont changed. But not that is free of construed.
11. One other co with. It is poin juri iction at th that the subject a the respondent h lack of juri ictio petition cannot be 16. Following the abo relevant to the year of when computed from t
2014-15, so according block period of ten AY reopened the same und fourth proviso of Section u/s 148 of the Act unde that, the Ld. CIT(A) had time line of 10 years fro in Section 153A of the juri iction to reopen A ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 22 ::

fathom the wi om of the parliament. I ca ment introduced by the Finance Act, 2017
re years over and above the six years alre e of the provision. When the law has it is not for the court to stretch it. Plastici science, thanks to the teachings of Norma trary to settled wi om, even brain struc t so when it comes to a provision in a ta ambiguity. Such a provision cannot b ntention urged by the standing counsel ha nted out that the petitioner has invok e notice stage. Since the petitioner has d assessment year lies beyond the ambit of t has no juri iction to issue the impugned on has been established, the maintainabilit e in doubt."
ve decision (supra), in the present search in AY 2023-24, the period the end of AY 2023-24 would term to us, AY 2013-14 would clearly f
Ys and therefore the AO could no er section 153A(1)(b) read with Exp n 153A of the Act, at the time of iss er the new regime i.e. 30.03.2023. d rightly held that, the AY 2013-14
om the end of relevant AY 2023-24
e Act and therefore held that the AY 2013-14 under the new regime,

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
annot assume
7 intended to eady provided prescribed a ty is the new an Doidge. It cture can be axing statute be elastically as to be dealt ked the writ demonstrated the provision, notice. Once ty of the writ case, as the AY of the ten AYs, minate upon AY fall outside the ot have legally planation (1) to suance of notice
Hence, we find fell beyond the 4, as prescribed
AO lacked the in terms of the restrictive covenant set
Act.
17. Our above view is Court in the case of KA was held that, an actio relation to a search und meet the foundational
149(1) of the Act. The C have to not only satisfy
149, but in a relevant would be applicable by of the Act. In the decid and the seized material over on 16.08.2024. Ha the Act, the deemed da
Hon’ble High Court, hav six or ten years is requ assessment as conte
Explanation (1) to four the assessment in resp ten years as stipulated
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 23 ::

t out in first proviso to Section 14
s noted to be supported by the Hon
AD Housing Pvt Ltd v. DCIT (sup on of reassessment which comes to dertaken on or after 01 April 2021
tests as specified in the first prov
Court held that, a reassessment act y the time frames constructed in te case concerned with a search, als virtue of the provisions of Section ed case, the search was conducted
/ information relating to the assess aving regard to the provisions of S te of search was 16.08.2024, i.e. AY ving regard to the manner in whic ired to be reckoned in respect of re emplated under Section 153A(1
rth proviso of Section 153A of the pect of the AY 2015-16 falls beyond in terms of the first proviso to Sec

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
49(1)(b) of the n’ble Delhi High pra) wherein it o be initiated in would have to viso to Section tion would thus erms of Section so those which 153A and 153C on 11.10.2023
see was handed
Section 153C of Y 2025-26. The h the period of eopening of the 1) read with Act, held that, d the period of ction 149(1)(b) read with Section 153C issued by the AO u/s 1
of the Hon’ble High Co under:-
“5. In the presen reopened on the b conducted on 11. Apparently, certai during the course was forwarded t juri iction in the c the AO issued a n
Act setting out the the petitioner's in assessment.
….
8. Concededly, in c a non-search par
Section 148A of th that the notice und
9. As noted above whether the impu limitation as stipul is squarely covere this Court in Dine
Central Circle 20, D well as in The P
Medicare Pvt. Limi
).
…..
11. In Ojjus Medic manner in which th in respect of reope and/or before the as contemplated u
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 24 ::

C of the Act and therefore quashed
48 of the Act under the new regim urt, which are relevant in the pres nt case, the petitioner's assessment is s basis of the information available pursuant
.10.2023 in respect of Sterling Agro In n information pertaining to the petitione of the said proceedings and, on 16.08.202
o the Assessing Officer (hereafter AO case of the assessee. On receipt of the said notice dated 17.08.2024 under Section 14
e information, which according to the AO su ncome for the relevant AY 2015-16, case any incriminating material was found rty during the search proceedings, proc he Act is not required to be followed. It is der Section 148 was issued.
e, the short question to be considered by ugned notice has been issued beyond t ated under Section 149(1)(b) of the Act. T d by the earlier decisions of the Co-ordin esh Jindal v. Assistant Commissioner of Delhi & Others [2024] 164 taxmann.com 7
r. Commissioner of Income Tax -Centra ited [2024] 161 taxmann.com 160/465 IT care Pvt. Limited (supra), the Court also e he period of six or ten years is required to ening of the assessment for a period prior expiry of ten years from the relevant asses under Section 153C of the Act. The court

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
d the notice so me. The findings sent case, is as sought to be t to a search dustries Ltd.
er was found
24, the same
O) exercising d information,
48A(b) of the uggested that has escaped in respect of cedure under on this basis this Court is he period of The said issue nate Bench of Income Tax,
746 (Delhi) as al-1 v. Ojjus
TR 101 (Delhi explained the o be reckoned r to six years ssment years held that the period of ten yea assessment year r
148 of the Act is is 12. The relevant e
(supra) is set out b
"D. The First Prov basis of which the the ten year bloc accounts by the ju for the purposes governed by the F the reference point from which the calculated, to the assets seized by t shift of the releva regulated by the F longer res integra decisions of this C decision of the Sup also stood reiterat
The submission o would have to be neither be counten
E. The reckoning o in which the sea ascertainment of block of six AYs' w the AY relevant to undertaken in term that the previous the year in which are handed over to which constitutes t
F. While the ident the phrase "imme previous year" of s from the 31st day since undisputedly
"from the end of necessarily be ack
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 25 ::

ars is required to be reckoned from the relevant to the year in which the notice u ssued.
extract of the decision in Ojjus Medicare below:- viso to Section 153C introduces a legal f commencement date for computation of th ck is deemed to be the date of receipt uri ictional AO. The identification of the s of computation of the six and the ten y
First Proviso to Section 153C, which signif t spoken of in Section 153A(1), while defin period of the "relevant assessment yea date of receipt of the books of accounts, d the juri ictional AO of the non searched ant date in the case of a non-searched
First Proviso of Section 153C(1) is an issue a and stands authoritatively settled by v
Court in SSP Aviation and RRJ Securities a preme Court in Jasjit Singh. The aforesaid ed by the Supreme Court in Vikram Sujitk f the respondents, therefore, that the b e reckoned with reference to the date o nanced nor accepted.
of the six AYs' would require one to firstly id arch was undertaken and which would the AY relevant to the previous year of would consequently be those which immedia the year of search. In the case of a search ms of Section 153C, the solitary distincti year of search would stand substituted by the books of accounts or documents and o the juri ictional AO as opposed to the y the basis for an assessment under Section tification and computation of the six AYs'
diately preceding the assessment year re search, the ten year period would have to of March of the AY relevant to the year of , Explanation 1 of Section 153A requires u the assessment year". This distinction w knowledged in light of the statute having

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
e end of the under Section Pvt. Limited fiction on the he six year or of books of starting block ear period is ficantly shifts ning the point ar" is to be documents or person. The person being e which is no virtue of the s well as the legal position kumar Bhatia.
block periods f search can dentify the FY lead to the search. The ately precede h assessment ion would be y the date or assets seized ear of search
153A.
hinges upon levant to the be reckoned search. This, s to reckon it ould have to g consciously adopted the phras to the six year per assessment year" w
13. The petitioner tabular statement,
AY 2015-16 falls
Section 149 read w out the said tabula
Analysis of time-p notice under Secti the first proviso o
2021
Relevant Asses initiating proceedi
148 of 2025-2
2024-2
2023-24
2022-2
2021-2
2020-2
2019-2
2018-19
2017-18
2016-1
2015-1
14. Mr Chawla, states that there issue is covered b
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 26 ::

seology "immediately preceding" when it b riod and employing the expression "from th while speaking of the ten year block."
r has, on the basis of the said decisions,
, which indicates that the assessment in r beyond the period of ten years as stip with Section 153C of the Act. It would be ap ar statement, which reads as under:- period to issue reassessment notice Date on 148 - 31.08.2024 This chart is prepar of Section 149 of the Act as amended by ssment year for ings under Section the Act
Without prejudice c years in light of Sectio
6
1
5
2
4
3
3
4
2
5
1
6
0
7
9
8
8
9
7
10
6
11 (beyond term year the learned counsel appearing for the Re is no cavil with the said tabular statement by the decisions of this Court in Dinesh Jind

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
be in relation he end of the , produced a espect of the ulated under pposite to set of impugned ed in light of y Finance Act computation of 10
first proviso to n 149
0
minal point of 10
rs) evenue, fairly t and that the dal (supra) as well as Ojjus Med the Revenue may 15. In view
Consequently, the re-assessment pr
18. In the above decis on their earlier judgmen
(supra). The relevant f to be applicable in the fa
"8. Undisputedly, if conducted afte provision. Sub-se insofar as the a Proviso to Sectio time, and to exa mind the timefra
Section 153A a essentially requir the timeframes w they stood prior t
9. Thus, an act relation to a sear meet the foundat
149(1). A reasse time frames cons and which is co applicable by virt
10. Undisputedly tested on the anv succeed for the proceedings und impugned notice importance since year" would hav initiated to reope
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 27 ::

dicare Pvt. Limited (supra). He, however, y challenge the same in appropriate proceed of the above, the impugned notice is e respondent is restrained from the procee roceedings in respect of the AY 2015-16.”
sion, the Hon’ble High Court is found nt rendered in the case of Dinesh J findings rendered in this judgment acts of the present case before us, i and in terms of Section 153C(3) of the Ac er 01 April 2021, would cease to be regu ection (3), in that sense, embodies a s applicability of Section 153C is concerne on 149(1), however, bids us to go back amine whether a reopening would sustai ames as they stood embodied in Section nd 153C, as the case may be. The res us to undertake that consideration bea which stood specified in Sections 149, 153A to the commencement of Finance Act, 2021
ion of reassessment which comes to be rch undertaken on or after 01 April 2021 w tional tests as specified in the First Provis essment action would thus have to not on structed in terms of Section 149, but in a oncerned with a search, also those whic ue of the provisions of Section 153A and 15
y, and if the validity of the reassessment vil of Section 153C, the petitioner would b following reasons. It is an undisputed f der Section 148 commenced on the b dated 30 March 2023. This date would b e the period of six AYs' or the "relevant ve to be reckoned from the date when n the assessment pertaining to AY 2013-14

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
submits that dings.
s set aside.
eding with the d to have relied
Jindal v. ACIT which are held is as under:-.
ct, any search lated by that sunset clause ed. The First in a point of in bearing in 149(1)(b) or First Proviso aring in mind
A and 153C as 1. e initiated in would have to so to Section ly satisfy the relevant case ch would be 53C.
t were to be be entitled to fact that the basis of the be of seminal t assessment n action was 4."

y refer to the decision of the Hon
Ltd. v. Dy. CIT [WP(C) No. 12
rely applicable in the given facts o
, the search action under Section 1.09.2021 and therefore the ass search was AY 2022-23. Having reg e Section 149(1) of the Act, in add ation 1 appended thereto, it was n m the end of the assessment year i with AY 2013-14 and therefore the d 13.03.2023 to reopen AY 2012-13
terms of first proviso to Section 14
gs of the Hon’ble High Court are as t from the prima facie observations which n that occasion, the reassessment which is ssment Year ["AY"] 2012-13 would not su cription of limitation as contained in Secti x Act 1961 ["Act "] as it stood at the releva while dealing with a similar question of co or the "relevant assessment year " as pro
Section 153A of the Act, we had in the cas f Income Tax-Central-1 v. Ojjus Medica e Del 2439] held as follows:- oviso to Section 153C introduces a legal f e commencement date for computation of block is deemed to be the date of receipt juri ictional AO. The identification of the s of computation of the six and the ten y

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
’ble Delhi High
2148 of 2023]
of the assessee
132 of the Act sessment year gard to the first ition to Section noted that, the in which search e notice issued was held to be 49(1)(b) of the follows:- h came to be sought to be stain bearing on 149(1)(b) ant time.
omputation of ovided under se of Principal are Pvt. Ltd.
fiction on the f the six year t of books of starting block year period is governed by the the reference po point from which calculated, to the assets seized by shift of the relev regulated by the longer res integr decisions of this C decision of the position also st
Sujitkumar Bhati the block periods of search can neit
E. The reckoning
FY in which the ascertainment of block of six AY precede the AY r assessment unde would be that th the date or the y assets seized are year of search w section 153A.
F. While the iden the phrase "imme previous year" of from the 31st da
This, since undis reckon it "from t have to necessa consciously adop be in relation to t the end of the ass
5. In view of th impugned notice
Act.
6. The writ petitio
18 May 2023 dis
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 29 ::

First Proviso to Section 153C, which signif oint spoken of in Section 153A(1), while the period of the "relevant assessment y e date of receipt of the books of accounts, d the juri ictional AO of the non-searched vant date in the case of a non-searched
First Proviso of Section 153C(1) is an issu ra and stands authoritatively settled by Court in SSP Aviation and RRJ Securities a Supreme Court in Jasjit Singh. The afo tood reiterated by the Supreme Court a. The submission of the respondents, th s would have to be reckoned with referenc ther be countenanced nor accepted.
of the six AYs' would require one to firstly search was undertaken and which would f the AY relevant to the previous year of Ys' would consequently be those which relevant to the year of search. In the case ertaken in terms of Section 153C, the solita he previous year of search would stand su year in which the books of accounts or do handed over to the juri ictional AO as op which constitutes the basis for an asses ntification and computation of the six AYs'
ediately preceding the assessment year re f search, the ten year period would have to ay of March of the AY relevant to the ye putedly, Explanation 1 of Section 153A re he end of the assessment year". This dist arily be acknowledged in light of the st pted the phraseology "immediately preced the six year period and employing the expr sessment year" while speaking of the ten y he aforesaid, we find ourselves unable to dated 13 March 2023 issued under sectio on is accordingly allowed and the impugned sposing off the objections of the petition

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ficantly shifts defining the year" is to be documents or d person. The person being e which is no virtue of the as well as the oresaid legal t in Vikram herefore, that e to the date y identify the d lead to the f search. The immediately e of a search ary distinction ubstituted by ocuments and pposed to the sment under hinges upon elevant to the o be reckoned ar of search.
equires us to inction would tatute having ding" when it ression "from year block."
o sustain the on 148 of the d order dated ner is hereby quashed. We in c purporting to com
20. Following the abo that the, notice dated 3
14 to be ab inito void a filing of return, issua assessment order u/s 1
to be non-est in the eye no reason to interfere dismiss the appeal of th
21. We now take up t
17 which was dispose consolidated order. With as the lead case and o apply to the Revenue’s that, before the Ld. CIT invalidly initiated reasse under the new 148 reg
According to the assess that, the AO was permit an assessment year fo assessment year, but in ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 30 ::

consequence also quash the notice dated 13
mmence proceedings under section 148 of t ve, we countenance the Ld. CIT(A)’
30.03.2023 issued u/s 148 of the Ac nd therefore all consequent actions nce of notices, and the passing
47/143(3) dated 15.03.2024 for AY es of law and is accordingly quashe e with the order of Ld. CIT(A) a he Revenue.
he Revenue’s appeal(s) for AYs 20
ed by the Ld. CIT(A) by way h the consent of both parties, AY 20
our decision in this appeal shall mu appeal for AYs 2015-16 & 2016-17
T(A), the assessee had contended th essment proceedings for AYs 2014- ime, as these notice(s) were barre see, though Section 149(1)(b) of th tted to reopen the income-tax asses or a period upto ten years from th n view of the embargo laid down in & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
3 March 2023
the Act."
’s order holding ct for AY 2013- thereafter viz., g of impugned
Y 203-14 is held ed. We thus see and accordingly
14-15 to 2016- of a common
014-15 is taken utatis mutandis
. It is observed hat, the AO had -15 to 2016-17
d by limitation.
he Act provided ssment year for he end of such first proviso to Section 149(1)(b) of the period of six (6) years viz., AY 2023-24, in th
AYs 2014-15 to 2016-1
in Section 153A(1)(b) ordinary six (6) year pe defined in Explanation required to demonstrate
Section 153A of the Ac under the new 148 regi to demonstrate that a escaped assessment in the bar laid down in th was contended that, impugned AYs 2014-15
that, the Ld. CIT(A) af and the first proviso to plea of the assessee a dated 04-08-2023 for A to 2016-17 to be barr
Revenue is in appeal be ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 31 ::

e Act, the AO could not have reopen
, which immediately preceded the he present case. It was the appella
17 fell beyond the six-year block pe of the Act and that in order to eriod and reopen the ‘relevant asses
(1) to Section 153A of the Act e that the conditions laid down in fo ct was fulfilled, at the stage of issu me. The assessee claimed that, the any income represented in form
AYs 2014-15 to 2016-17 and theref he first proviso to Section 149(1)(b the AO could not have legally to 2017-18 under the new 148 reg fter examining the provisions of ne
Section 149(1)(b) of the Act acced and held the notice(s) issued u/s AY 2014-15 and dated 07-08-2023 fo red by limitation. Aggrieved by s fore us.

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ned beyond the year of search ant’s case that, eriod prescribed go beyond the ssment year’ as t, the AO was ourth proviso to uance of notice
AO was unable of ‘asset’ had fore in terms of b) of the Act, it reopened the gime. It is seen ew 148 regime ded to this legal
148 of the Act or AYs 2015-16
uch order, the 22. The Ld. CIT, DR a 149(1)(b) of the Act, th year for a period excee the end of such assess
30-03-2023 issued u/s well within the timelin therefore she submitted notice(s) to be barred first proviso to Section where an assessee is su provides that, the notic if such a notice could ha
Act at that material time
Finance Act, 2021, the from the end of the conducted. She therefo within the 10 year bloc
153A of the Act and acc the assessment under t
149(1)(b) of the Act.
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 32 ::

appearing before us, contended that he AO was empowered to reopen a eding three years but not beyond sment year. According to her, the 148 of the Act for AYs 2014-15 to ne set out in Section 149(1)(b) o d that the order of the Ld. CIT(A) by limitation was unsustainable. R
149(1) of the Act, she pointed out ubjected to search u/s 132 of the A e under Section 148 of the Act can ave otherwise be issued under Sect e. According to her, in cases of sear
Revenue was permitted to reopen u relevant assessment year in whic ore submitted that, AYs 2014-15 t ck period as defined in Explanation cordingly claimed that the AO had v the new 148 regime, in terms of pro

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
t, under Section any assessment ten years from notice(s) dated o 2016-17 was of the Act and ) holding these
Referring to the t that, in cases
Act, the proviso be issued only ion 153A of the rch, prior to the up to ten years ch search was to 2016-17 fell
(1) to Section validly reopened oviso to Section 23. Per contra, the L
Revenue and he argue
153A(1) of the Act, no could be issued unless other documents or evi the form of an asset has the extended period o assessment year relev conducted, would be ap which discloses that the contended that, in the escaped assessment is the AO had subsequen represent in form of a maximum period for w notice under Section 1
preceding the year of precedent in fourth pr appellate order of Ld.
Hon’ble Delhi High Cou
(467 ITR 389).
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 33 ::

Ld. AR vehemently opposed the co d that, in terms of the fourth pro notice for the relevant assessment the AO had in his possession book idence which revealed that income s escaped assessment. According to of limitation beyond the six years vant to previous year in which pplicable only in cases where the AO e escaped income was represented b present case, the income which is a on account of an expenditure[pur tly disallowed and not on account an ‘asset’ and therefore he conte hich reassessment could be initiate
153A of the Act was for a perio search and not beyond, because roviso had not been fulfilled. In CIT(A), the Ld. AR relied upon t urt in the case of Smart Chip Pvt

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ntention of the viso to Section t year or years s of account or represented in o him therefore, preceding the a search was O had evidence, by an asset. He alleged to have rchases], which of any income nded that, the ed by issuing a d of six years e the condition support of the the decision of t Ltd Vs ACIT

arties and perused the material pla ordinarily the AYs prior to AY 20
ew 148 regime, only if such AY e capable of being reopened under n in erstwhile Section 149(1)(b)], a wever, in cases where search has b
021 or where document or informa ourse of search which relates to the or reassessment which was earlier of the Act, is now required to b
147 of the Act. As a consequence, th ua AYs prior to AY 2021-22, would b
149(1)(b) of the Act and therefore ent u/s 148 of the Act can be issue wise been validly reopened in ter
[as it stood prior to introduction o suance of notice under the new regi case before us, search was condu
2 and therefore in terms of the sec t, the income of the assessee is d in accordance with the new 1

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
aced before us.
021-22 can be [in non-search the old regime at the stage of been conducted ation has been assessee [third r required to be be made under he timelines for be governed by e the notice for ed, only if such rms of Section of Finance Act, me.
ucted upon the cond proviso to required to be 48 regime, as introduced by Finance assessment of AYs 201
to AY 2021-22, is requi to Section 149(1)(b) of under section 148 of th the legal principles, as the Revenue’s appeal f whether AYs 2014-15 to provisions of Section 15
30.03.2023 and only if have validly issued notic
26. As noted earlier, S procedure for reopenin
153A(1) of the Act prov block of six years prece year in which search requisition is made und assessment year or ye
Section 153A(1) of the A respect of each of the years as well as for the ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 35 ::

e Act, 2021. The timelines for 4-15 to 2016-17 impugned before ired to be tested on the tenets of t the new regime, at the stage of iss he new regime i.e. 30.03.2023. Ha already discussed elaborately whi for AY 2013-14, we are required to o 2016-17 could have been reopene
53A of the Act on the date of issuanc f the answer is in affirmative that ce u/s 148 of the Act under the new
Section 153A of the Act lays down t ng the assessments in cases of s vides that, the assessments can be eding the assessment year relevant under Section 132 of the Act is er Section 132A of the Act as well ears. As is apparent from the pla
Act, the AO has the juri iction to is e assessment years falling within s relevant year or years as referred t

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
reopening the us, being prior the first proviso uance of notice aving regard to ile adjudicating o first ascertain d under the old ce of notice i.e.
, the AO could w regime.
the manner and search. Section reopened for a to the previous s conducted or as the relevant in language of ssue a notice in six assessment to in Clause (b) of Section 153A(1) of t year of search i.e. AY 2
to 2022-23. However, proscribes issuance of respect of a relevant as in the fourth proviso are assessment year" is de
Section 153A of the Act assessment years prece year in which search is than ten assessment ye to the previous year in Hence, in our considere which is beyond the 153A(1)(b) and within t which search was cond precedent in fourth prov has in his possession b which reveals that the has escaped assessmen rupees or more in the re
Section 153A of the ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 36 ::

the Act. In the present case, having
2023-24, the six year block period the fourth proviso to Section 153A any notice for assessment or re ssessment year unless the condition e satisfied. It is seen that, the expre efined under Explanation 1 to sub t to mean a year that falls beyond th eding the assessment year relevant s conducted or requisition is made ears from the end of the assessmen which search is conducted or requ ed view, in order to reopen any as six year block period contemplat the ten year block period from the e ucted, the AO is required to satisf viso to Section 153A of the Act and books of account or other documen income, represented in the form o nt amounts to or is likely to amou elevant assessment year. As per Exp
Act, the term "asset" shall inclu

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
g regard to the is AYs 2017-18
A(1) of the Act eassessment in ns as stipulated ession "relevant b-section (i) of he period of six to the previous e, but not later nt year relevant isition is made.
ssessment year ted in Section end of the AY in fy the condition d show that, he nts or evidence f ‘asset’, which unt to fifty lakh planation (2) to ude immovable property being land or advances, deposits in ba
27. We find that, the is found to have record
148 of the Act for AYs satisfaction recorded fo found to have been reco
“….13. Thus, evidences availab the assessee had connivance of unaccounted cash form of asset ha
50,00,000 for A.
section 149(1)(b evidence which s has escaped asse and hence, notice
28. From the above it issue notice u/s 148 of represented in form of assessment in AY 201
reveals that, the case expenses by booking bo was ‘expenditure’ and concerning the assesse regarding the genuinen
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 37 ::

building or both, shares and secur ank account.
AO was conscious of the above pos ded his satisfaction prior to issuanc
2014-15 to 2016-17. The relevant or AY 2014-15 is as under [similar orded for AYs 2015-16 & 2016-17] :
, the information in the seized materia ble with the undersigned, unambiguously ev d booked bogus old bottle purchase expen the five old bottle vendors thereby h which clearly suggests that income repre as escaped assessment, and exceeds mo
Y 14-15. Hence, this case falls under th b). In view of the above, there is info suggests that income represented in the fo essment and which exceeds more than Rs.
e u/s 148 is required to be issued in this ca t is seen that, the AO had assumed the Act by making a sweeping rema f asset, in excess of Rs.50,00,000/
14-15. Careful reading of the abo of the AO was that the assesse ogus purchases and the item escap not any ‘asset’. According to us, ee’s income which had escaped as ess of the expenses claimed in the & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ities, loans and ition of law and ce of notice u/s t extract of the r satisfaction is :
ls and other videnced that nses with the y generating sented in the ore than Rs.
e purview of ormation and orm of asset,
. 50,00,000/- se.”
d juri iction to ark that income
/- had escaped ove satisfaction ee had inflated ing assessment the allegation ssessment was e accounts. The AO has not pointed out acquisition of any ‘asse order(s) passed u/s 14
expenses debited on acc not brought on record resulted in the acquisiti of the considered view to Section 153A(1) of absence of there being a tax in the impugned AY issuing a notice under S case, would necessarily years immediately pre previous year in which conducted. In our opin beyond the six year bl proviso to Section 153A impugned AYs in light
Section 149(1)(b) rea countenance the followi
AO’s action of initiation
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 38 ::

t as to how such inflation of expen et’. It is observed that, even in the 47/143(3) of the Act, the AO has count of purchases made from vend any material to establish that such on of any asset by the assessee. W that, the condition stipulated in the the Act was not fulfilled by the any income represented in form of ‘
Ys 2014-15 to 2016-17, the period o
Section 153A of the Act, in the giv have to be confined to a period of eceding the assessment year re h the search under Section 132 o ion therefore, since AYs 2014-15 t ock period and the condition prece
A is not met, the AO could not have of the embargo set out in the f ad with Section 153A of the ng findings rendered by the Ld. CIT n of reassessment proceedings u/s & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
nses resulted in e reassessment disallowed the dors and he had h expenses had We therefore are e fourth proviso
AO. Hence, in ‘asset’ escaping of limitation for en facts of this six assessment elevant to the of the Act was to 2016-17 fall edent in fourth e reopened the first proviso to Act. We thus
T(A) holding the 148 of the Act for AYs 2014-15 to 20
under:-
“6.3.18
Now th generated by bo
Explanation 2 to s
6.3.19
At this to section 153A
Asset in the Act.
an economic reso as immovable pro and securities, lo
Whereas, ‘Liabilit obtained (secure characterized or revenues in form
6.3.20
“A reading of t
Explanation (2) defines 'Asset for Act, clarify the in the assessment u assessment year assessment year, juri ictional fact lakhs or more of to 10th Assessm
Since the Parliam asset' and the d proviso, this itsel side of the Balanc on the legal Ma
Alterius" which p exclusion of othe
Supreme Court
(Constitution ben
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 39 ::

016-17 to be impermissible in law, he issue before the under signed is whethe ooking purchase expenses represent asse section 153A of the Act.
juncture, it is appropriate to analyse the E of the Act which describes the inclusions
The undersigned is of the view that an ass ource, either immovable or movable, havin operty viz., land or building, investment h oans & advances given and deposits in b ty’ includes items such as share capital, re ed as well as unsecured) etc. which classified as ‘Asset’. Therefore, items of ‘
of ‘sales’ / ‘turnover’ does not constitute ‘a on’ble ITAT, Guwahati Bench had an ue of “Asset” in the case of ACIT Cen rtune Vanijya Private Limited in ITA No.
1 wherein the Hon’ble ITAT has observed as the fourth proviso to section 153A of to fourth proviso to section 153A of th r the purpose of fourth proviso to section ntention of the Parliament to permit the A u/s. 153A after search u/s. 132 of the Ac rs to ten assessment years preceding t r, provided the AO has in his possession t i.e. "undisclosed/unaccounted asset" v the assessee discovered during search pert ment Year preceding the searched asses ment has used the expression 'income in definition of asset has been spelled out i lf necessarily implies the liability/items falli ce Sheet stands excluded. For this view of axim for interpretation "Expressio Unius principle states that, express mention o er and this maxim has been accepted by in GVK Industries Ltd. Vs. ITO [197 T nch of 5 Supreme Court Judges). By expres

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
by holding as er the income et as per the Explanation 2
s in the term et represents g value, such held in shares ank account.
serves, loans h cannot be ‘expenses’ or asset’.
occasion to ntral circle-2,
21/Gau/2021
s under.
the Act and he Act which 153A of the AO to enlarge ct beyond six the searched the essential valued Rs 50
taining to 7th ssment year.
the form of in the fourth ing in the left ours, we rely
Est Exlcusio f one is the y the Hon'ble
Taxman 337]
ss mention of 'Assets' and defi
Parliament silent
'liabilities' from it of juri iction u/
assessment year
6.3.21
When juri iction u/s 1
undisclosed asset with the aid of a unexplained cash
Council in Nazir A Hon. Supreme Co in a particular ma
6.3.22
Therefo that the assessee income cannot be section 153A. He include a)
Immovable Prope b)
Shares & Securiti c)
Loans and Advan d)
Deposits in Bank
Hence, the re-ope where AO posse reveals that ‘ass specified supra, assessee, resultin
6.3.23
The fac rendered by the H
Cements Ltd, M
10.12.2021 wher value of Rs. 50 L identifiable. The that :
"8.22. From our specified 'asset/s
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 40 ::

finition given to it specifically, it is impl tly excluded the items of 'revenue', 'ex ts juri ictional fact for invoking/assumptio
/s. 153C/153A of the Act for the seven preceding the searched assessment year.”
ourt), that “when a statute requires a thin anner, it must be done in that manner only ore, unless the AO has material in possess e has ‘assets’, which is not disclosed in th e said to have escaped assessment for th ere, the statute specifically mentioned “
erty being land and building or both es ces accounts ening beyond a period of six years can be ess books of accounts, documents or evi sets’ are found to be undisclosed or una in the regular books of account mainta ng in escapement of income.
cts of the case are squarely covered by Hon’ble Gauhati Bench of ITAT in the case
Meghalaya in IT Nos. 126 to 131/Gau/
rein it was held that the undisclosed asset
Lakhs unearthed at the time of search shou
Hon'ble Bench has observed in para 8.22
r discussion (supra) it is clear that, on s' as defined in Explanation (2) is unearthe

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
lied that the xpenditure' &
on/usurpation nth to tenth for invoking is possession ot be invoked xpenditure or of the Privy
3 (followed by ng to be done
.”
sion to prove he books, the he purpose of Asset “ shall made only if, idence which accounted as ained by the the decision of Goldstone
/2020 dated t exceeding a uld be clearly
2 of its order nly if any of ed during the course of search or undisclosed, w said to be in pos u/s 153A for 7th-
6.3.24
The ab
Hon’ble Gauhati further appeal by Goldstone Ceme irrespective of its defined in Expla assumed by the A 6.3.25
It is a assessment orde contemplated assessee and ha respective assess any un disclosed
6.3.26
In add categorically mad the assessed inco
The AO has only u/s 147 of the A u/s 153C of the A income generated imagination be tr
147 of the Act
6.3.27
Further
Hon’ble High Co enterprises Vs. AC the Hon’ble high shows that Comm empowered to a immediately prec year in which the year or years. Ex expression releva assessment year than ten assess relevant to the p
4th proviso to s which are require
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 41 ::

and the acquisition of such an asset' being which is valued Rs 50 Lakhs or more, that th ssession of the juri ictional fact to initiate
-10th AY (AY 2011-12, in the instant case).
ove finding of the Hon’ble Tribunal was ra
High Court in ITA/7/2022 on 29 Septemb y the Revenue u/s 260A of the Act in the c ents Ltd. It was emphasized that an s character, does not fall within the definit anation 2 to S.153A and therefore the AO is unsustainable .
appropriate to bring on record that the er (s) passed for the years under consi disallowance(s) of bogus expenses boo as added the same to the returned in sment years rather than making addition on asset found during the course of search .
dition, the AO in the assessment order de any addition(s) / disallowance(s) whi ome of the appellant for the years under c restricted the assessed income in the ord
Act to the income determined by vide ord
Act. Therefore, the undersigned is of the v d by booking purchase expenses can at a reated as an asset to invoke the provisio r, it is appropriate to rely upon the dec ourt of Bombay in the case of Ashok
CIT in [2023] 154 taxmann.com 144 (Bom
Court held that “A plain reading of section missioner having juri iction under the sa assess or reassess the total income o ceding the assessment year relevant to e search was conducted and for the relevan xplanation 1 below section 153A of the Ac ant assessment. In order to make an ass which falls beyond six assessment years sment years from the end of the asse previous year, in which the search was co section 153(A)(1) sets out certain furthe ed to be fulfilled before a notice can be is & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
g unexplained he AO can be e proceedings
”
atified by the ber, 2023 on ase of CIT V.
expenditure, tion of ‘asset’
e Juri iction e AO in the ideration has oked by the come in the n the basis of r(s) has not le computing consideration.
der(s) passed der(s) passed view that the ny stretch of ns of section cision of the Commercial bay) wherein n 153A(1)(b) aid section is of six years the previous t assessment ct defines the sessment for but not later essment year onducted, the er conditions ssued for the relevant assessm the Assessing Off evidence which r which has escap rupees fifty lakhs expanded definit proviso.
6.3.28
Besides
India Private Lim
ITA No.669/Chny of the decision of Cements Ltd. (ITA is quite clear th assessment year
21) in which the In such a situatio as stipulated in f that certain inco escaping assessm documents or evi possession of the to the relevant as assessment is re undisclosed speci assessment year assessment is Rs assessment years represented in th
Explanation-2, a building or both, bank accounts.
6.3.29
In the of the assessmen any documents o
148 of the Act
Specifically, there in the form of an likely to exceed f or cumulatively a ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 42 ::

ment years. Clause (a) of the4th proviso fficer must have in his possession books, d reveal that income represented in the form ed assessment amounts to or is likely t s or more. Explanation 2 to section 153A(1
tion of the word "asset" for the purpose s, the juri ictional tribunal in the case mited Vs. DCIT Central circle-2(1), Chenna y/2023 dated 10.07.2024 by relying upon f Hon’ble Guwahati High Court in the case
A No.10 of 2022 & ors. Dated 29-09-2023) he impugned AY fall beyond 6 years fr
(AY 2021-22) from the end of the previous search was conducted on the assessee (2
on, the Ld. AO would be subjected to furth fourth proviso to Sec.153A(1). These condi ome has escaped assessment; (b) the fa ment is evident from the books of acc idences found in the course of search whi e assessing officer; (c) that the escaped inc ssessment year or years; (d) that the inco epresented by undisclosed specified asset; ified asset was acquired with the income of r or years; (f) that the quantum of inco s.50 Lacs or more in the aggregate for s. One of the prime condition is that incom he form of asset which has escaped assess asset includes immovable property bein share and securities, loans and advances present case of the appellant company, on nt order(s) reveals that the AO has not cited or evidence to support the initiation of pro
(which is governed by Section 153A e is no reference to information indicating n asset, has escaped assessment and amo fifty lakh rupees, either in the relevant asse cross the assessment years in question.”

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
requires that documents or m of an asset to amount to ) sets out an s of the 4th of M/s. KAG ai in ITA No.
the decision of Goldstone
) held that “it rom relevant s year (2020-
26-02-2021).
her conditions itions are (a) ct of income counts, other ich are in the come pertains ome escaping
(e) that the f the relevant ome escaping the relevant me should be sment. As per ng land and s, deposits in n examination d or provided oceedings u/s of the Act).
that income, ounts to or is essment year

above view expressed by the Ld. CIT on rendered by the Hon’ble Delhi Hi vt Ltd Vs ACIT (supra) involving nvolved in the present case. In the upon the assessee on 21-03-2023, eopening notice u/s 148 of the Act assessee challenged the validity of ore the Hon’ble High Court conte he assessee argued before the Hon proviso to Section 149(1)(b) of th
AY 2016-17 only if such AY cou
Section 153A of the Act, as it 148 regime by Finance Act, 2021. AO could have reopened six AYs pr conducted i.e. AYs 2017-18 to 2
being the year of search and that A ix years. The assessee contended
016-17 in terms of fourth proviso t xplanation (1) to Section 153A of t
AO to show that the condition prec
3A of the Act was met viz., the me represented in form of ‘asset’ e

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
T(A) is squarely igh Court in the g identical facts e decided case, consequent to on 21-03-2024
f the notice by ending it to be ’ble High Court he Act, the AO uld have been stood prior to It was pointed receding the AY
2022-23 which AY 2016-17 fell that, if the AO o Section 153A the Act, then it cedent in fourth
AO is able to xceeding Rs.50

lacs had escaped asses assessee, the Hon’ble criteria set out in four issuance of notice u/s the six year block perio
Court observed that, th genuineness and that t form of ‘asset’ which ha show that such expens was held that, the cond
153A(1) of the Act was 148 of the Act for AY virtue of the embargo with Section 153A of th
Court which are applica follows:-
“8. A plain read indicates that the proscribed if a no not have been iss under Clause (b)
Section 153C, as 9. We also cons made by the Sup
SCC OnLine SC
238/469 ITR 46 (
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 44 ::

ssment in AY 2016-17. Upholding t
High Court noted that, the AO ha rth proviso to Section 153A of th
148 of the Act for AY 2016-17, wh od, under the new 148 regime. Th e AO had sought to disallow expens he same did not qualify as income ad escaped tax. Hence, since the AO es had resulted in the acquisition o ditions stipulated in the fourth pro not met and thus the impugned no 2016-17 was held to be barred by set out in first proviso to Section he Act. The relevant findings of th able with equal force in the presen ing of the first proviso to Section 149(1
e issuance of a notice under Section 148
otice under Sections 148, 153A or 153C of sued at that time on account of the time l of Section 149(1) of the Act, or under Sec in force at that time.
ider it apposite to refer to the following preme Court in Union of India v. Rajeev B
2693/ [2024] 167 taxmann.com 70/3
(SC):

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
the plea of the d not met this he Act prior to hich fell beyond he Hon’ble High ses doubting its represented in O was unable to of any asset, it viso to Section otice issued u/s y limitation, by 149(1)(b) read he Hon’ble High nt case, are as 1) of the Act of the Act is the Act could imit specified ction 153A or observations
Bansal: 2024
301 Taxman

"49. The first p of whether the old regime con before. Result cannot be iss relevant asses notice. This a prescribed un prospectively.
ten year perio year period ex
149(1)(b) of th to reopen as assessment am limits the retro interests of the *** *** ***
54. The provi expression "be clause (b) of immediately b
Thus, the prov section 149(1
without applic
Amendment o issuance of r assessment ye and 2017-2018
(i) for the asse period expires and (ii) for the as year period respectively."
10. The aforesaid the context of tim under the provisio virtue of the firs would be equally under Section 14
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 45 ::

proviso to Section 149(1)(b) requires the d e time limit prescribed under section 149
ntinues to exist for the assessment year 20
tantly, a notice under Section 148 of the ued if the period of six years from the ssment year has expired at the time of iss also ensures that the new time limit o nder section 149(1)(b) of the new reg
For example, for the assessment year 20
d would have expired on 31 March 2023, xpired on 31 March 2019. Without the provi he new regime, the Revenue could have h sessments for the year 2012-2013 if mounted to Rupees fifty lakhs or more.
ospective operation of Section149(1)(b) to e assesses.
so to Section 149(1)(b) of the new regi eyond the time limit specified under the f sub section (1) of this section, as before the commencement of the Finance viso specifically refers to the time limits sp
)(b) of the old regime. The Revenue cation of Taxation and other Laws (Re of Certain Provisions) Act, 2020, the ti eassessment notices after 1 April 2021
ears 2013-2014, 2014-2015, 2015-2016,
8 in the following manner:
essment years 2013-2014 and 2014-2015, s on 31 March 2020 and 31 March 2021
sessment years 2016-2017 and 2017-201
expires on 31 March 2020 and 31
d observations in Rajeev Bansal (supra) w me limits for issuing notice under Section 1
ons as were in force prior to 31.03.2021, a st proviso to Section 149(1) of the Act. T y applicable for proscribing the issuance
48 of the Act, if the proceedings for reasse

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
determination
(1)(b) of the 021-2022 and new regime e end of the suance of the of ten years gime applies
12-2013, the while the six iso to Section ad the power the escaped
The proviso o protect the me uses the provisions of they stood e Act, 2021."
pecified under accepts that elaxation and me limit for 1 expires for , 2016-2017,
, the six year respectively;
18, the three
March 2021
were made in 48 of the Act as imputed by This principle e of a notice ssment could not be initiated u or under Section first proviso to S impugned notice issued under the in respect of a se to determine the 153A could be iss
11. It is the pet notice is confined year relevant to However, the Re
Section 153A(1) the end of the as the search unde
Section 132A of required to be a Section 153A(1) o
12. It is apparent time periods with of Section 153A( block of six yea previous year in w or requisition is relevant assessm
13. As is appare
Act, the AO has the assessment y the relevant yea
153A(1) of the A the Act proscr reassessment in conditions as stip
14. The expres
Explanation 1 to year that falls be assessment year conducted or req years from the en in which search is ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 46 ::

nder the provisions of Section 153A or 153
153A or Section 153C of the Act as refer
Section 149(1) of the Act. There is no c would be unsustainable if such a notice provision of Section 153A of the Act as w earch conducted prior to 31.03.2021. It thu period of limitation within which a notice u sued in respect of AY 2016-17. titioner's case that the time limit for issu d to the six assessment years preceding the the previous year in which search wa evenue contends that by virtue of Expla of the Act, the Revenue can travel back te ssessment year relevant to the previous y er Section 132 was conducted or a requ the Act was made. Plainly, the said co addressed by referring to Section 153A of the Act is set out below:…….
t from the above that Section 153A of the hin which the assessments could be reopen
1) of the Act, the assessments can be re ars preceding the assessment year rele which search under Section 132 of the Act made under Section 132A of the Act as ent year or years.
nt from the plain language of Section 15
the juri iction to issue a notice in respe years falling within six assessment years a ar or years as referred to in Clause (b
Act. However, the fourth proviso to Sectio ibes issuance of any notice for ass respect of a relevant assessment yea pulated in the fourth proviso are satisfied.
ssion "relevant assessment year" is de sub-section (i) of Section 153A of the Ac eyond the period of six assessment years p r relevant to the previous year in whic quisition is made, but not later than ten nd of the assessment year relevant to the p s conducted or requisition is made.

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
3C of the Act, rred to in the cavil that the could not be was applicable us requires us under Section ance of such e assessment s conducted.
anation 1 to en years from year in which uisition under ontroversy is of the Act.
Act refers to ned. In terms opened for a evant to the is conducted s well as the 53A(1) of the ct of each of as well as for b) of Section n 153A(1) of sessment or r unless the efined under ct to mean a preceding the ch search is n assessment previous year

a's contention that the extended period
3A of the Act would be applicable for the p n 149(1) of the Act notwithstanding that th the fourth proviso to Section 153A of the erited. Once, we accept that a notice under t be issued if such a notice could not be the Act; it would be necessary to determin issuance of a notice under Section 153A of six assessment years and a further lock of ten assessment years is contem f the Act, it follows that it would be er the extended period of ten years is app ent case. This necessitates considering th uance of the impugned notice. The releva reopening the reassessment, as furni out below:
on:- he search proceedings and post-search inve and other group entities revealed that thes massive profit shifting outside India. I at Idemia India and its group entities ha anisms through which it is shifting pr nterprises (AEs) especially Idemia Franc ny GmBH.
have revealed various tax-avoiding a he group entities like export sales made to mport purchases made from AEs at unjust fees paid to AEs without any actual servi
AW materials from AEs, R&D services provi transaction with Non- Filers etc. A sum di is as under:
ebit to Non- Filers:
ved that Smart Chip Pvt Ltd had undert n the nature of contract, rent, professional s who have not either never filed the ITR o ich transaction occurred. The details of tra w:

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
of limitation urpose of the he conditions, e Act are not r Section 148
issued under ne the period
A of the Act.
r period not plated under necessary to plicable in the he reasons as ant extract of shed to the estigations of e entities are It has been ave deployed rofit to their ce SAS and arrangements o AEs at very ified markup, ces received, ded to AEs at mmary of the aken various charges with or not filed in nsactions are In this regard, to verify the g
However, no r the absence o that above p contract/rent p
In view of the has escaped a 2015-16 to FY charges with v or not filed in of expenses o
2020-21 needs
B. DISALLOWA
It is noticed incriminating
Matthew David as Annexure personal expe claimed in the The incriminat
*** *** ***
On perusal of Rs.2,42,646/w noticed that Sm personal bene example purch card payment company is als
IPL tickets for availing favou obtain undue as deduction.
said to have b business and n
C. Disallowanc
It is noticed th premises of M
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 48 ::

, summons notices were issued to the abo genuineness of the transactions by invest esponse has been received from the partie of any compliance by the party and in vie parties are non-filer till date, the gen payments made by Smart Chip could not be above, assessee's income aggregating ?4
ssessment by way of various transactions d
Y 2020-21 in the nature of contract, rent, various parties who have not either never the year in which transaction. Hence the of ?4,46,21,363/- with non-filers from FY s to be verified.
ANCE OF PERSONAL EXPENSES that during the course of search procee evidences were seized from the prem d Foxton (34, Jor Bagh, New Delhi-110003)
A-2 in Premise TDR-9, wherein some nses of the key persons of Smart Chip Pv books of accounts of Smart Chip.
ing evidences found are discussed as unde f the above, it can be noted that gold were being purchased in FY 2015-16. Furth mart Chip has been regularly incurring exp efit of directors and key managerial p hase of iPhones, Sarees, Purfume, Hote ts, etc. Further, it has also been observ so regularly incurring expenses for alcohol r bank officials, travel bills of governmen urs from them. These expenses incurred favours are in infraction of law and canno
Furthermore, such personal expenses ca been incurred wholly and exclusively for th needs to be examined.
ce of expenses paid to VIHAAN INFRASYSTE hat some incriminating evidences were sei
Mr. Matthew David Foxton (34, Jor Bagh

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ove non-filers tigation wing.
es till date. In w of the fact nuineness of e verified.
4,46,21,363/- during the FY
, professional filed the ITR genuineness
Y 2015-16 to edings, some mises of Mr.
) annexurized instances of vt. Ltd. were r:
items worth her, it con be penses for the personnel for l bills, credit ved that the s for officers, nt officers for d to illegally ot be allowed nnot also be he purpose of EMS LTD.
zed from the , New Delhi-

110003) anne instances of u the garb of con and the said
Smart Chip. T the course of s
On perusal of KPMG Paris se
Ltd. provided s other support services, busin expenses incu
Ltd. in FY
Rs.8,70,00,000
Various incrim memo which payments mad
■
revenue of Vih expenses paid exceeded the t
■
Mukherjee we
Infrasystems significant influ thus, it can be book non-gen money for the ■
and Smart Chi
■
company / rela
■
Vihaan Infrasy and having clo
■
much higher a ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 49 ::

exurized as A-2 in Premise TDR-9, w nduly routing of money to Vihaan Infrasys ntractual manpower services and other sup expense cost was being claimed in the The extracts of incriminating evidences as search are discussed as under:
f the above observations as noted from t eized during the course of search, Vihaan significant manpower services to Smart Ch t services such as data management, ness support rent etc. In this regard, t urred and paid by Smart Chip to Vihaan
2015-16 relevant to AY 2016-17 am
0 /-.
minating facts were noted from perusal o raised significant doubts over the genuin de by Smart Chip to Vihaan Infrasystems Lt
Smart Chip is the major contributor haan Infrasystems Ltd. and in some financ d by Smart Chip to Vihaan Infrasystem total revenue of Vihaan Infrasystems Ltd.;
Mr. Sanjeev Shriya, his family members re shareholders and key managerial perso
Ltd. in the past years and can be s uence over the affairs of Vihaan Infrasyste e observed that Vihaan Infrasystems Ltd.
uine expenses in the books of Smart Ch benefit of specific persons;
Common address, website of Vihaan Infra p and other group companies;
Vihaan Infrasystems Ltd. presented a ated company of Idemia Group entities;
Mr. Sanjeev Kumar Jain, holding substan ystems Ltd., was the former employee of ose relationship/connivance with Mr. Sanjee
The fees charged by Vihaan Infrasystem s compared to other contractual manpower

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
herein some stems Ltd. in pport services books of the found during the Memo of Infrasystems hip along with training, IT he details of Infrasystems mounting to of the seized neness of the td.:
to the total ial years, the ms Ltd. even and Mr. Alok ons of Vihaan said to have ems Ltd. and was used to ip and divert asystems Ltd.
as a group tial shares in f Smart Chip ev Shriya; ms Ltd. was r company;

■
in respect of ex
■
which further non-genuinene
Further, the corroborated w shareholders a of Memorandu
2004, Archived profile of Viha
Chip's landlord use their offic
Vihaan Infrasy party disclosu
(Goldrock Inve party in its An of Vihaan Infra organization, p
Vihaan Infrasy of invoices rais premises of Vi
All the above
Infrasystems unduly transfe expenses in th no genuine se
Smart Chip. T prepared by Id payments mad to be non-gen business of the Thus, in view has been regu without any ac of Rs.8,70,00
incurred for th to AY 2016-17
examined.
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 50 ::

No proper documentation and proof of se xpense transactions with Vihaan Infrasyste
Discrepancies in employee's attendance establishes the non-receipt of any actual ess of the transaction with Vihaan lnfrasyst above observations in the seized Mem with detailed analysis in the Memo incl as on 31.03.2016, Sanjeev Kumar Jain pro um of Association of Vihaan Infrasystems L d version of Vihaan Infrasystems Ltd. web aan Infrasystems Ltd., consent form sign d providing permission to Vihaan Infrasys ce space and Vihan noted as related pa ystems Ltd. with Aadharshila and Smart ures in the other companies of Mr. Sa estment) showing Vihaan Infrasystems Lt nnual report for FY 20 16-17, domain nam asystems Ltd. wherein Smart Chip shown proofs that Smart Chip's address noted a ystems Ltd. on Government's website, MCA sed by Vihaan Infrasystems Ltd., physical v haan lnfrasystems Ltd., and various other a incriminating evidences clearly showed
Ltd. was merely a conduit entity which er money from Smart Chip and book he books of Smart Chip. The evidences est ervices were provided by Vihaan Infrasys
This finding is in fact based on the in demia Group with the help of KPMG Paris de by Smart Chip to Vihaan Infrasystems L uine and nowhere wholly and exclusively r e Smart Chip.
of the above, it is clearly corroborated tha ularly making payments to Vihaan Infrasys ctual receipt of any services and thus, claim
,000/-cannot be said to be wholly and he purpose of business during the FY 20 15
7 and treated as escaped assessment and & 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
ervice existed ems Ltd.
record found services and ems Ltd.
o were also uding list of ofile, extracts
Ltd. signed in site, Linkedln ed by Smart stems Ltd. to arty, links of Chip, related njeev Shriya d. as related me verification as registrant as address of A etc, analysis verification of analysis.
that Vihaan was used to non-genuine tablishes that stems Ltd. to ternal report s. Hence, the Ltd. are found related to the at Smart Chip stems Limited m of expenses d exclusively
5-16 relevant needs to be As discussed a expenses debi made to Vihaa
A.Y. 2016-17
assessment an *** *** ***
2. Evidently, w case of the ass
Tax Act 1961 o
3. Hence, in l and first prov
'information' w escaped asses consideration r.w.s 151(ii) o
Act 2022. 4. In view of th
Rs.9.21 Crorc
Rs.0.024 Crore debited to Vih entry and expe
Y. 2016-17 by profits to their as specified u explanation th chargeable to represented in 16. It is appare petitioner's inco essentially three expenses relating their income tax the said transacti which according t had not been in petitioner's busin amounts as expe the AO doubted t
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 51 ::

above, assesse's income of Rs.9.21 Crore ited to non -filers and personal expenses an Infrasystems Limited for F.Y. 2015-16
in the head of business expenses nd needs to be examined.
warrant was issued in the name of the asse sessee was covered under Search u/s 132
on 21.03.2023. ight of the provisions of Explanation-2 to viso to Section 148A, I am satisfied which suggests that income chargeable ssment in the case of the assessee for th and it is a fit case to issue notice u/s 14
of the Income Tax Act 1961 as amended by he above, the assessee has misrepresent t cs [Rs.0.49 Crore expenses debited to es as personal expenses + Rs.8.70 Crores haan Infrasystems Ltd. represented in the enditure] in its ITR filed for F. Y. 201516 r way of various tax-avoiding arrangements r Associated Enterprises (AEs) outside Indi u/s 149(l)(b) of the Income-tax Act, 196
ereto which suggests that income exceedin tax has escaped assessment in this ca the form of an entry and expenditure."
ent from the above that the AO believ me had escaped assessment for AY e grounds. First, that the petitioner h g to amounts paid to certain persons who returns and the AO thus doubted the ge ions. Second, that the petitioner had book to the AO, were personal expenses of its curred wholly and exclusively for the pu ness. And third, that the petitioner had enses for availing contractual manpower he genuineness of the said payments.

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
es by way of s & payment
6 relevant to has escaped essee and the ofthe Income o Section 148
that I have to tax has e year under 48 r.w.s 149
y the Finance he amount of non-filers +
as expenses e form of an relevant to A.
s and shifting a. Therefore,
61 read with ng Rs.50 lakh ase which is ved that the 2016-17 on ad deducted had not filed enuineness of ked expenses, directors and urpose of the paid certain services and 17. It is clear fro which has escape
Therefore, the c proviso to Section have the posse evidence, which r in the form of an 18. In terms of E
'asset' is defined both, shares an accounts.
19. The AO see genuineness for t exclusively for t further material acquisition of any to Section 153A(1
20. In the afores under Section 15
necessarily have immediately prec year in which the 21. The search i thus, the releva assessment year relevant to the Accordingly, AY 2
22. In view of proceedings initia
30. Respectfully follow to interfere with the or juri iction u/s 147 of t
Act for AYs 2014-15 to ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 52 ::

m the above that there is no allegation tha ed assessment was represented in the form conditions as stipulated in Clause (a) o n 153A(1) of the Act are not satisfied. The ession any books of account, other do reveals that the petitioner's income that is asset has escaped assessment.
Explanation 2 to Section 153A(1) of the A to include immovable property being land d securities, loans and advances, depo ks to disallow expenses on account of the reason that the same were not incurr he purpose of the petitioner's business.
to establish that such expenses had res y asset, the conditions stipulated in the fo
1) of the Act would remain unsatisfied.
said view the period of limitation for issu
53A of the Act, in the given facts of this to be confined to a period of six asses ceding the assessment year relevant to search under Section 132 of the Act was c in question was conducted in financial ye nt block of six assessment years would rs preceding AY 2023-24, being the asse previous year in which the search was 2016-17 falls beyond the block of six years.
the above, the impugned notice as ated pursuant thereto are set aside.”
wing the above decision (supra), we rder of Ld. CIT(A) holding the AO’s he Act and the issuance of notice(s)
2016-17 to be null and resultantly

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
at the income m of an asset.
of the fourth e AO does not ocuments or s represented
Act, the term or building or osits in bank doubting the red wholly or Absent any sulted in the ourth proviso uing a notice s case, would ssment years the previous conducted.
ear 2022-23; d be the six essment year s conducted.

well as the e see no reason s usurpation of ) u/s 148 of the non-est in eyes of law. Accordingly, all t to 2016-17 stands dism
31. In view of our ab
Act for AYs 2013-14 to issued beyond the time of the Act and hence al issuance of notice stan assessee for AYs 2013
nature and is therefore questions raised on the in these appeals are left
32. In the result, bo assessee are dismissed.

Order pronounced (अिमताभ शुा)
(AMITABH SHUK
लेखासद'य/ACCOUNTANT
ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 53 ::

the grounds raised by the Revenue issed.
bove findings, the notice(s) issued
2016-17 is annulled on the ground e limit stipulated in first proviso to ll the consequential proceedings fro nds effaced. Further, the appeal(s
3-14 to 2016-17 have now becom e dismissed as infructuous. Needl points of law and merits of the ad t open.
oth the appeals filed by the Rev
.
d on the 21st day of November, 2025
KLA)
T MEMBER (एबी टी.
(ABY T. VA
याियकसद'य/JUDI

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.
in AYs 2014-15
u/s 148 of the that they were Section 149(1) om the stage of s) filed by the me academic in ess to say, all dition(s) raised venue and the 5, in Chennai.
-
वक
)
ARKEY)
ICIAL MEMBER

चे नई/Chennai,
(दनांक/Dated: 21st Novem
TLN
आदेश क ितिल)प अ*े)षत/Co
1. अपीलाथ /Appellant
2. थ /Respondent
3. आयकरआयु/CIT, Chenn
4. िवभागीयितिनिध/DR
5. गाड फाईल/GF

ITA Nos.1163, 1256, 1257 &
ITA Nos. 1231, 1232, 1234
(AYs 20
M/s. Southern Agrifurane
:: 54 ::

ber, 2025. opy to:
nai / Madurai / Salem / Coimbatore.

& 1259/Chny/2025 &
4 & 1236/Chny/2025
013-14 to 2016-17) e Industries Pvt. Ltd.