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Facts
The appeal was filed by the assessee against the order dated 21.07.2025 passed by the CIT(A) for assessment year 2018-19. The appeal was filed with a delay of 35 days, which was condoned by the tribunal. The assessee argued that the assessment proceedings initiated under section 153C were null and void.
Held
The Tribunal noted that the search in the assessee's case was conducted after the specified date, making Section 153C of the Act not applicable. Consequently, the notice issued under Section 153C and the subsequent assessment order were deemed invalid.
Key Issues
Validity of assessment proceedings initiated under Section 153C of the Income Tax Act, 1961, when the date of search is after the specified period.
Sections Cited
153C of the Income Tax Act, 1961
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Before: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunatha
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 21.07.2025 passed by the ld. Commissioner of Income Tax (Appeals) 20, Chennai for the assessment year 2018-19.
We find that this appeal is filed with a delay of 35 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.
The ld. AR Shri S. Bhupendran referred to the additional ground No.1 and submits that the assessment proceedings initiated by the Assessing Officer by issue of notice dated 04.11.2022 under section 153C of the Income Tax Act, 1961 [“Act” in short], is null and void.
He submits that a search was conducted in the case of M/s. Anitha Texcot India Pvt. Ltd. on 17.03.2021. The Assessing Officer of the searched person recorded his satisfaction on 15.6.2022 and accordingly Assessing Officer of the assessee recorded his satisfaction on 06.09.2022 which is deemed to be the date of search in the case of the assessee. He drew our attention to page 17 of the paper book and referred to decision of Hon’ble High Court of Madras in the case of Harigovind v. ACIT reported in 180 taxman.com 197 (Madras) and argued that the facts and circumstances of present case is squarely covered by the decision of Hon’ble High Court of Madras in the case of Harigovind v. ACIT (supra) and prayed to allow the additional ground No.1.
The ld. DR Ms. C. Vatchala, CIT relied on the order of the ld. CIT(A).
Heard both the parties and perused the material available on record. We note that admittedly, the date of search in the case of the assessee is to be the date on which satisfaction recorded by the Assessing Officer on the assessee, i.e., 06.09.2022, which is after 01.04.2021, which is not disputed by the ld. DR, therefore, the provisions of section 153C of the Act is not applicable and thus, the notice dated 04.11.2022 issued under section 153C of the Act is invalid. Therefore, the consequent assessment order made thereon under section 153C of the Act vide order dated 08.02.2024 is fails and quashed.
In the result, the appeal filed by the assessee is allowed. Order pronounced on 26th February, 2026 at Chennai.