Interpretation of proviso to section 153C-

[brett_lee38]

Proviso to section 153C provides that date of handling our of the document would become the date of search for the purpose of second proviso of 153A. Therefore a question would arise that what six year for the person covered under section 153C would be reopened by the AO. Whether the years which are relevant for the searched person or the years which relates to deemed date of search. Though this issue is pending before the High Court of Dehi and would come on its own turn. However I would like to the views of the learned members of the site.

As far as my view which happens to be the view of the ITAT benches of Delhi is that six year relevant to the date of handling of the documents would be reopened. However, there are certain people who are saying that six year would remain same as of the searched person and the only thing which is changed is the abatment of proceedings has to be seen from this day.

Therefore in their view if a search has happened in 2008 and documents received by the AO of the other person in 2010 then years from 2010 onwards including six years of the searched person would be reopened, which means the AO of the other person would open eight years of the other person and the other person who cannot foreseen the future proceedings in present have to secure his books and other documents up to unlimited period because there is no time limit for the purpose of recording of satisfaction. Therefore the other person would suffer much than the person searched. This is not the intention of the legislature. Because legislature don't want to grill the other person on high nodes than that of searched person
My humble request to the all the legal personalities of the Bombay to ponder on this issue seriously because it has serious remifications on the assessments of other persons