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TMI BlogValidity of Assessment u/s 153C: Reckoning the Limitation PeriodX X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Appellate Tribunal (ITAT) that dealt with the crucial issue of determining the appropriate assessment years for initiating proceedings u/s 153C of the Income Tax Act, 1961 , in cases involving search and seizure operations. The case highlights the importance of correctly identifying the starting point for calculating the six-year limitation period prescribed u/s 153C . The core leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s immediately preceding it would be AY 2018-19 to AY 2022-23. The assessee relied on various judicial precedents, including the decisions of the coordinate Benches of the ITAT, to support their contentions. Revenue's Contentions: The Revenue supported the orders passed by the lower authorities, contending that they were in accordance with the law. COURT DISCUSSIONS AND FINDINGS The ITAT admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he previous year in which the search was conducted would be AY 2023-24, and the six assessment years immediately preceding it would be AY 2018-19 to AY 2022-23. Consequently, the assessment for AY 2021-22 should have been carried out by issuing a notice u/s 153C , and not u/s 143(2). ANALYSIS AND DECISION The ITAT concluded that the assessment order dated 29-12-2022, passed u/s 143(3) for AY 2021- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered to. The Tribunal relied on the coordinate Bench decision in Jasjit Singh's case, which had extensively analyzed the interplay between Sections 153A and 153C and the proviso to Section 153C . The order highlights the importance of correctly determining the starting point for calculating the limitation period u/s 153C . It aligns with the judicial precedents that have consistently held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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