INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Bar of limitation -

Consequent to search dated 30-10-2012 conducted on M/s. 'PIL' under section 132(1) of the notice under section 153C read with section 153A was issued on assessee on 19-9-2014 on the ground that documents/material belonging to assessee were found during the course of search on PIL. A satisfaction note before issuance of notice under section 153C was recorded by AO in the capacity of the AO of searched person, i.e., PIL and also in the capacity of AO of assessee and same was duly communicated to assessee. Assessee filed detailed objections against issuance of notice under section 153C and satisfaction recorded by AO. Accordingly, AO invoked jurisdiction over assessee's case from assessment year 2008-09 onwards. Assessee contended that assessment, so framed under section 153C was barred by limitation. Held: Date for determination of six preceding assessment years that would lay upon under section 153C read with section 153A would decidedly be the date of handing over of the documents. In the instant case, satisfaction note was recorded by AO of M/s. PIL on 19-9-2014 as well as by AO of assessee on 19-9-2014 which was to be taken as the date of handing over of documents and thus six preceding assessment years began with assessment year 2009-10 and ended with assessment year 2014-15 and no assessment under section 153C could have been made in respect of assessment year 2008-09 and it was clearly barred by limitation.

Followed:RRJ Securities (2015) 380 ITR 612 (Del) : 2015 TaxPub(DT) 4278 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

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