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2017 (11) TMI 987 - AT - Income TaxValidity of assessment u/s 153C - date for the purpose of section 153C - date of satisfaction note u/s 153C recorded - period of limitation - Held that - Date of receiving the seized documents and other evidences should be taken as 29.01.2013. By virtue of first proviso to section 153C, date of initiation of search for computing six assessment years has to be counted as if date of search is 29.01.2013. Six assessment years covered u/s 153C would be A.Y. 2007-08 to A. Y. 2012-13. Therefore, impugned assessment years 2006-07 cannot covered within six assessment years as envisaged u/s 153C. Accordingly, Ld. CIT(A) rightly held that the impugned assessment for A. Y. 2006-07 is time barred and not covered u/s. 153C of I.T. Act. Accordingly, the impugned assessment order was rightly held annulled, which does not need any interference on our part, hence, we uphold the same. - Decided in favour of assessee.
Issues:
1. Computation of assessment years under section 153C of the Income Tax Act. 2. Validity and legality of the assessment order under section 153C. 3. Barred by limitation for assessment years. Issue 1: Computation of assessment years under section 153C of the Income Tax Act: The case involved a search and seizure operation in connection with a group of companies. The Revenue appealed against the order of the Ld. CIT(A), challenging the computation of assessment years. The ITAT referred to a similar case involving DSL Properties (P) Ltd. and analyzed the date of recording satisfaction under section 153C. The ITAT held that the date of receiving seized documents should be considered as the date of initiation of search for computing six assessment years. The ITAT concluded that the assessment year 2006-07 was not covered within the six assessment years as per section 153C, and hence, the impugned assessment for A.Y. 2006-07 was deemed time-barred and not covered under section 153C of the Income Tax Act. Consequently, the appeal of the Revenue was dismissed. Issue 2: Validity and legality of the assessment order under section 153C: The Revenue challenged the order of the Ld. CIT(A) which allowed the appeal of the assessee. The Revenue contended that the assessment order made various additions under sections 153C/153A of the Act, and the Ld. CIT(A) had erred in holding the assessment for A.Y. 2006-07 as time-barred. However, the ITAT, after considering the arguments of both parties and analyzing the legal provisions, upheld the decision of the Ld. CIT(A) regarding the computation of assessment years. The ITAT found that the impugned assessment order for A.Y. 2006-07 was rightly held annulled due to being time-barred and not covered under section 153C of the Income Tax Act. Issue 3: Barred by limitation for assessment years: The ITAT examined the limitations imposed by the proviso of section 153C regarding the date of search and the date of receiving seized documents. It was established that the assessment for A.Y. 2006-07 was beyond the six assessment years covered under section 153C, as per the legal interpretation provided by the ITAT based on previous rulings. The ITAT affirmed that the impugned assessment for A.Y. 2006-07 was time-barred and not within the scope of section 153C. Therefore, the ITAT dismissed the appeal of the Revenue, upholding the decision of the Ld. CIT(A) regarding the annulment of the assessment order for A.Y. 2006-07. ---
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