Diwakar N. Shetty v. DCIT ( 2020) BCAJ -November – P. 57 ( Mum) (Trib)

S. 153C : Assessment – Income of any other person – Search – Satisfaction – Additional ground – Date on which satisfaction is recorded by the Assessing Officer for invoking the provisions would be deemed to be the date of receiving documents by the Assessing Officer of other person- Allowed the additional ground and quashed the assessment order . [ S. 132, 132A 144 ]

In the instant case although the AO of the searched person and other person( Assessee) was the same , satisfaction was recorded by the  AO for invoking the provisions of section 153C on 21st December 2020 the said date would be deemed to be the date of  receiving  doucments by the AO. Thus , the year of search would be FY. 2010-11 relevant to AY . 2011-12 )  . Accordingly the Tribunal held that  the date of initiation of search or requisition in the case of other person shall be the date of receiving the books of accounts or documents or assets seized or requisitioned by the AO , having jurisdiction over such other person . Accordingly the Tribunal held that since the impugned assessment year forms part of the block assessment years  prior to the date of  search , the assessment should have been  made u/s 153C and not regular assessment as has been by the AO . Therefore the assessment order for the impugned year suffers from legal infirmity and hence is liable to be quashed .  Referred  CIT v. Jasjit Singh ( ITA No 337 of 2015 dt  2-1-2018 ( AY. 2009 -10 ) ( Delhi ) (HC) , EON Auto Industries P. Ltd v. DCIT (ITA No. 3179/ Del /2013 dt 28 -11-2017)( AY. 2008 -09) ( Delhi ) (Trib)     ( ITA No 5618/Mum/ 2016 dt . 30 -9-2020 ) (AY. 2010-11)