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TMI Blog2024 (9) TMI 1625X X X X Extracts X X X X X X X X Extracts X X X X ..... by Ld AR is tenable that the assessment year relevant for previous year in which search was conducted in the case of the assessee will be AY 2023-24 and six years immediately preceding the assessment year relevant for u/s 153C of the Act will be AY 2018-19 to 2022-23. The assessment for AY 2021-22 should have been carried out by issuing notice u/s 153C of the Act and not u/s 143(2) of the Act. There fore the assessment order dated 29-12-22 passed u/s 143(3) of the Act is bad in law and liable to be quashed and quashed accordingly. The additional grounds filed by the assessee are allowed. - Sh.S. Rifaur Rahaman, Accountant Member And Sh. Sudhir Kumar, Judicial Member For the Appellant : Sh. Ved Jain, Advocate, Ms. Uma Upadhyay, CA For the Respondent : Ms. Shashi Kajle, Sr. DR ORDER PER SUDHIR KUMAR, JM: This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Delhi [hereinafter referred to as CIT(A) ] vide order dated 12.02.2024 pertaining to A.Y. 2021-22 and arises out of the assessment order dated 18.01.2023 under section 143(3) of the Income Tax Act 1961 [hereinafter referred as the Act ]. 2. Aggrieved by the order of the Ld CIT(App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid addition despite the fact that the same has been made by the AO on the basis of image extracted from the whatsapp chats between the third parties and not related to the assessee. 8. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the document relied upon by the AO does not contain the signature and is a dumb document and shall not be relied upon. 3. The assessee has also raised additional grounds of appeal:- 11 On the facts and circumstances of the case, the learned AO has erred in considering the assessment year under consideration as the assessment year relevant to the pervious year in which search was conducted and consequently passing the assessment order under section 143 (3) of the Act instead of section 153C of the Act. 12. On the facts and circumstances of the case, assessment order is otherwise liable to be quashed in the absence of notice being issued under section 153C of the Act. 13. On the facts and circumstances of the case, the assessment proceedings initiated without complying with the provision of section 153C of the Act is bad in law and without jurisdiction and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the notice u/s 143(2) of the Act for A.Y. 2021-22 was issued on 30-06-2022 which is placed at page no 10-11 of the paper book. He has further submitted that it is settled position in law that in respect of assessment proceedings u/s 153C of the Act, blocked period of six assessment years has to be reckoned from the date of receipt of the documents by the AO. In this regard, reliance has placed on the following judgments; 1. M/s. Spendor Landbase Limited Vs. Asstt. Commissioner of Income Tax 2014 (11) TMI 1012 2. Jagjit Singh Vs. ACIT, Central Circle-11, New Delhi 2015 (8) TMI 982 3. Commissioner of Income Tax -14 Vs. Shree Jasjit Singh 2023 (1) TMI 572 4. Commissioner of Income Tax 14 Vs. Jasjit Singh 2024 (4) TMI 268 5. The Pr. Commissioner of Income Tax Central-1 Vs. Ojjus Medicare Pvt. Ltd. Others. 2019 (10) TMI 350 6. Shr. Jagjit Singh C/o. M/s. Satish Aggarwal Associates Vs. ACIT, Central Circle -21, New Delhi 2019 (10) TMI 350 7. Shalimar Town Panners Pvt. Ltd. Vs. ACIT Central CIrlce 23 New Delhi 2020 (7) TMI 47 8. The Ld AR has submitted that for the assessment proceedings u/s 153C of the Act, the period of six years immediately preceding the assessment year relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of DSL Properties P. Ltd. (supra) in favour of the assessee accepting the similar contention of the assessee. Similar view has been expressed by the Delhi Bench of the Tribunal in the case of V.K. Fiscal (supra) holding that the date of receiving of the seized documents would become the date of search and six years period would be reckoned from this date. For a ready reference para no. 19, 21, 22 23 of the decision of Delhi Bench of the Tribunal in the case of DSL Properties (supra) are being reproduced hereunder: 19. We have carefully considered the rival submissions. Proviso to section 153C reads as under: Provided that in case of such other person, the reference to the date of initiation of the search u/s 132 or making of requisition u/s 132A in the second proviso to sub-section (1) off section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the AO having jurisdiction over such other person. 20. The above proviso refers to second proviso to subsection (1) of section 153A. That section 153(1) and its first and second provisions read as under: - 153A. ((1)] Notwithstanding anything con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the seized document/books of account is to be placed in the file of such other person. The date on which this exercise is done would be considered as the date of receiving the books of account or document by the AO having jurisdiction over such other person. Though while examining the facts of the assessee's case we have arrived at the conclusion that no such exercise has been properly carried out and, therefore, initiation of proceedings u/s 153C itself is invalid, however, since both the parties have argued the issue of period of limitation also, we deem it proper to adjudicate the same. Since in this case satisfaction is recorded on 21st June, 2010 and notice u/s 153C is also issued on the same date, then only conclusion that can be drawn is that the AO of such other person has taken over the possession of seized document on 21st June, 2010. Accordingly, as per section 153(1), the AO can issue the notice for the previous year in which search is conducted (for the purpose of Section 1530 the document is handed over) and six assessment years preceding such assessment year. Now, in this case, the previous year in which the document is handed over is 1st April, 2010 to 31st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now a question may arise as to the applicability of the second proviso to section 153A in the case of the other person, in order to examine the question of pending proceedings which have to abate. In the case of the searched person, the date with reference to which the proceedings for assessment or reassessment of any assessment year within the period of the six assessment years shall abate, is the date of initiation of the search u/s 132 or the requisition u/s 132A. For instance, in the present case, with reference to the Puri Group of Companies, such date will be 5.1.2009. However, 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 AO 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. 18. In view of the above finding, the assessment framed u/s 143(3) of the Act for the A.Y. 2009-10 in the present case is not valid. Respectfully following the above ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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