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TMI Blog2023 (1) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... at the reasons for issue of notice under Section 153C r.w. Section 153A of the Act were recorded by the AO of the searched person on 05.03.2014. The satisfaction note was handed over to the AO of the assessee on 21.03.2014. As a corollary, the books of accounts, documents seized etc. were handed over to the Assessing Officer of the assessee. Therefore, the limitation for preceding six years starts from the aforesaid date, i.e., 21.03.2014. Consequently, the Assessment Years 2006-07 and 2007-08 are clearly outside the sweep of exercise of jurisdiction under Section 153C of the Act. The jurisdiction of issue notice under Section 153C are ousted insofar as Assessment Year 2006-07 and 2007-08 are concerned when the date of handing over of sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer (AO) under Section 153C of the Income Tax Act, 1961 (the Act) concerning AYs 2006-07 2007-08. 2. As per the grounds of appeal, the assessee has inter alia challenged the assessments framed under Section 153C of the Act on the ground that the impugned assessment orders passed by the Assessing Officer are without jurisdiction and void ab initio and thus liable to be quashed. 3. At the time of hearing, the ld. counsel for the assessee, Ms. Sumangla Saxena pointed out at the outset that the captioned appeals concerning Assessment Years 2006-07 and 2007-08 are liable to be quashed at the threshold as the Assessing Officer could not have validly initiated notice under Section 153C of the Act for framing assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question are incompetent in law and hence the assessment orders passed under Section 153C of the Act concerning Assessment Years 2006-07 and 2007-08 are liable to be quashed in limine. 4. The ld. DR relied upon the orders of the lower authorities. 5. We have heard the rival submissions on the issue. One of the controversies in the present case arises towards computation of limitation period under Section 153C of the Act for the purposes of issuance of notice and assessment thereon. As per Section 153A of the Act (in the case of searched persons), the limitation of preceding six years starts from the financial year in which search was conducted. However, in the case of Section 153C of the Act (person other hand searched person), th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer of the assessee on 21.03.2014 is reckoned. Similar view has been expressed by the Hon ble Delhi High Court in the case of Pr.CIT vs. Sarwar Agency P. Ltd. (2017) 85 taxmann.com 269 (Del). We thus find merit in the plea of the assessee that respective notices issued to the assessee under Section 153C of the Act for assessment years in question, i.e., Assessment Years 2006-07 and 2007-08 are without jurisdiction as these assessment years are beyond the purview of six assessment years in terms of pre-amended provisions of Section 153C of the Act. As a corollary, the assessments passed under Section 153C of the Act as a sequel to invalid notices are also liable to be quashed. In terms of these observations, the respective assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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