2023 (1) TMI 201 - AT - Income Tax

Assessment u/s 153A/153C - Period of limitation - HELD THAT - As per assessment order dated 30.03.2015 passed u/s. 143(3)/153C of the Act, satisfaction note was received by the Assessing Officer on 05.01.2015. Thus, assessment years 2009-10 to 2014-15 comes within the period six block years. The year under consideration is assessment year 2007-08, which is clearly barred by limitation as held by co-ordinate Bench of Tribunal in the case of DSL Properties (P) Ltd. 2013 (9) TMI 123 - ITAT DELHI Therefore, Assessing Officer in the present case did not assume valid jurisdiction to issue notice u/s. 153C of the Act for the assessment year 2007-08 on the basis of satisfaction recorded on 05.01.2015. Accordingly, the order of the Assessing Officer is liable to be quashed and the impugned order of ld. CIT(A) is not maintainable - Decided in favour of assessee.

Summary

Issues:
Jurisdiction under section 153C of the Income-tax Act, 1961 for the assessment year 2007-08.

Analysis:
The appeal was filed against the order passed by the ld. CIT(A)-5, Delhi for the assessment year 2007-08. A search and seizure operation was conducted, leading to the initiation of proceedings under section 153C of the Act. The Assessing Officer made an addition to the returned income of the assessee, which was confirmed in appeal before the ld. First Appellate Authority.

The appellant argued that the Assessing Officer lacked jurisdiction under section 153C for the assessment year 2007-08, as it did not fall within the block of six assessment years from the date of satisfaction note. The ld. CIT(A) did not address this argument in the assessment order.

The Tribunal examined the assessment order and noted that the satisfaction note was received by the Assessing Officer on 05.01.2015, encompassing the period from 2009-10 to 2014-15. However, the year under consideration was 2007-08, which was beyond the limitation period, as established in a previous Tribunal case. The Tribunal cited relevant sections and provisos to support its decision.

The Tribunal emphasized that even if the Assessing Officer of the searched person and the other person were the same, the proper procedure for transferring documents must be followed to determine the date of receiving the seized documents. As the notice issued under section 153C for the assessment year 2007-08 was beyond the limitation period, it was deemed legally invalid. Consequently, the Tribunal quashed the notice and the assessment completed based on it.

Therefore, the Tribunal concluded that the Assessing Officer lacked valid jurisdiction to issue the notice under section 153C for the assessment year 2007-08 based on the satisfaction note recorded on 05.01.2015. The order of the Assessing Officer was set aside, and the appeal of the assessee was allowed on this legal ground.