INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Bar of limitation - Date of preparation of satisfaction note

Consequent to a search conducted on M/s. PIL, notice under section 153C read with section 153A was issued on assessee on the ground that documents/material belonging to assessee were found during search on PIL. Satisfaction note before issuance of notice under section 153C was recorded by AO in the capacity of AO of searched person, i.e., P and also in the capacity of AO of other person, i.e., assessee and the same was duly communicated to assessee. Assessee's case was that date of handing over of the documents was 2-12-2014 and, therefore, assessment related to assessment year 2007-08 could not have been reopened for action under section 153C. Held: Terminal date for determination of six preceding assessment years that would lie upon under section 153C read with section 153A would decidedly be the date of handing over of documents. In the instant case, satisfaction note was recorded by AO of M/s. PIL on 22-12-2014, as well as by AO of assessee on 22-12-2014, which was to be taken as the date of handing over of the documents. Six preceding assessment years began with assessment year 2009-10 ended with assessment year 2014-15 and, therefore, no assessment under section 153C could have been made in respect of assessment year 2007-08 as it was clearly barred by limitation.

Followed:RRJ Securities (2015) 380 ITR 612 (Del) : 2015 TaxPub(DT) 4278 (Del-HC), ARN Infrastructure India Ltd. (2017) 81 Taxmann.com 260 (Del) : 2017 TaxPub(DT) 1216 (Del-HC), Raj Buildworth Pvt. Ltd. (2020) 113 Taxmann.com 600 (Del) : 2020 TaxPub(DT) 1028 (Del-HC) and Sarwar Agency Pvt. Ltd. (2017) 85 Taxmann.com 269 (Del) : 2017 TaxPub(DT) 4222 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

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