Section 153C Proceedings invalid in Absence of Incriminating Material: Delhi HC

R.C. Jewellers Pvt. Ltd. Vs DCIT (Delhi High Court) Delhi High Court has invalidated income tax proceedings initiated against R.C. Jewellers Pvt. Ltd. for multiple assessment years, ruling that action under Section 153C of the Income Tax Act, 1961, cannot be taken against a person who was not searched unless incriminating material directly relevant to their income is discovered during a search on a third party. The judgment, delivered in the case of R.C. Jewellers Pvt. Ltd. vs. DCIT, underscores the necessity of a clear nexus between seized material and the income of the person subjected to Se...