9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 626 - AT - Income TaxValidity of assessment u/s 153C - period of limitation - whether date of recording of satisfaction u/s 153C of the Act may be taken as date of handling over of seized documents? - 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 uls 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. Appeal of the Revenue is dismissed.
Issues Involved:
1. Interpretation of provisions under section 153C of the Income Tax Act, 1961 regarding the computation of the six-year period for assessment. 2. Validity of the assessment order for the assessment year 2006-07 under section 153C. 3. Application of the limitation period for issuing notice under section 153C. Analysis: Issue 1: Interpretation of provisions under section 153C The case involved a search and seizure operation at various premises related to a group of companies. The Revenue initiated proceedings under section 153C of the Income Tax Act, 1961, after finding documents belonging to the assessee company during the search. The key contention was whether the date of handing over of seized documents should be considered as the date of initiation of search for computing the six assessment years under section 153C. The ITAT referred to a previous ruling in the case of DSL Properties (P) Ltd. and held that the date of receiving the seized documents should be taken as the initiation date of the search for computing the six assessment years. This interpretation was crucial in determining the applicability of section 153C to the assessment year 2006-07. Issue 2: Validity of the assessment order for AY 2006-07 The Revenue challenged the assessment order for the assessment year 2006-07, arguing that it was not time-barred under section 153C. However, the ITAT upheld the decision of the CIT(A) that the assessment for AY 2006-07 was time-barred and not covered under section 153C. By considering the date of receiving the seized documents as the initiation date of the search, the ITAT concluded that the assessment for AY 2006-07 fell outside the six assessment years covered under section 153C. Therefore, the impugned assessment order for AY 2006-07 was deemed time-barred and annulled. Issue 3: Application of the limitation period The ITAT further emphasized that the date of receiving the seized documents should be considered for computing the six assessment years under section 153C. Referring to the proviso of section 153C, the ITAT clarified that the assessment could be reopened for the preceding six years from the date of receiving the documents. The ITAT's decision was supported by a similar finding in the case of V.S. Fiscal Services (P) Ltd. vs. DCIT. By applying this interpretation, the ITAT dismissed the Revenue's appeal, confirming that the assessment for AY 2006-07 was time-barred and not covered under section 153C. In conclusion, the ITAT upheld the decision of the CIT(A) and dismissed the Revenue's appeal, ruling that the assessment for AY 2006-07 was time-barred and not covered under section 153C of the Income Tax Act, 1961.
|
