2022 (9) TMI 1518 - HC - Income Tax

Assessment proceedings u/s 153C(1) - determining the six assessment years - jurisdiction of the searched group and the seized materials were with the AO and the assessee s jurisdiction has been transferred in to the AO s jurisdiction vide order u/s 127 - Tribunal has noted that the AO received the materials from the AO of the searched person on 2nd August 2016 - HELD THAT - Tribunal held that the assessments for the years 2009-10 and 2010- 11 could not have been subjected to assessment proceedings under Section 153C(1) of the Act with regard to as to how this year period should be calculated. Learned Tribunal rightly took note of the decision in the case of SSP Aviation Ltd. 2012 (4) TMI 335 - DELHI HIGH COURT wherein held in the case of the other person which in the present case is the petitioner herein such date will be the date of receiving the books of account or documents or assets seized or requisition by the Assessing Officer having jurisdiction over such other person. In the case of the other person the question of pendency and abatement of the proceedings of assessment or reassessment to the six assessment years will be examined with reference to such date. The jurisdictional issue has been decided by the Tribunal taking note of the admitted factual position that the assessee s Assessing Officer received the materials from the Assessing Officer of searched person only on 2nd August 2016. If that be the case the assessment for the year 2010-11 could not have been subjected to proceedings under Section 153C(1) of the Act.

Summary

Issues:
Delay in filing the appeal, Interpretation of Section 153C of the Income Tax Act, 1961.

Delay in filing the appeal:
The High Court of Calcutta considered an appeal where there was a delay of 342 days in filing the appeal. The Court examined the affidavit filed in support of the petition and found sufficient cause for the delay. Consequently, the application to condone the delay was allowed.

Interpretation of Section 153C of the Income Tax Act, 1961:
The appeal under Section 260A of the Income Tax Act was directed against an order passed by the Income Tax Appellate Tribunal. The main issue was whether the Assessing Officer was justified in invoking his power under Section 153C(1) of the Act. The Tribunal noted that the Assessing Officer received materials from the Assessing Officer of the searched person on a specific date. Based on this date, the Tribunal held that assessments for certain years could not have been subjected to assessment proceedings under Section 153C(1) of the Act. The Tribunal referred to relevant case law, including the decision in SSP Aviation Ltd. vs. Deputy Commissioner of Income Tax, to support its conclusion. The Court also considered other cases such as Commissioner of Income-tax-7 vs. RRJ Securities Ltd., Pepsi Foods (P.) Ltd vs. Asstt. CIT, and CIT vs. Gopi Apartments in reaching its decision.

In conclusion, the High Court found that there was no substantial question of law arising for consideration in the case. Therefore, the appeal was dismissed, and the stay application was also closed.