PCIT v. Gali Janardhana Reddy (2024) 297 Taxman 62/463 ITR 697 (SC) Editorial : PCIT v. Gali Janardhana Reddy(2023) 152 taxmann.com 332/ 454 ITR 467 (Karn)(HC)

S. 153C : Assessment-Income of any other person-Search-Satisfaction note-Limitation-Where no satisfaction is recorded year of search has to be considered-High Court quashed the proceedings-SLP of Revenue is dismissed. [S. 132, 153A]

Dismissing the appeal of the Revenue the Court held that the Tribunal was right in law in holding that the AY. relevant to the financial year in which satisfaction note was recorded under section 153C of the Act, would be taken as the year of search for the purposes of clauses (a) and (b) of sub-section (1) of section 153A of the Act by making reference to the first proviso to sub-section (1) of section 153C. Therefore, the Tribunal was right in law in holding that no satisfaction was recorded by the Assessing Officer of the searched person and the notice issued by the Assessing Officer under section 153C of the Act would be taken as the year of search for the purpose of clauses (a) and (b) of sub-section (1) of section 153A. The Tribunal was right in law in setting aside the assessment order passed for the AY. 2011-12 under the facts and circumstances of the case holding that there was no satisfaction recorded by the Assessing Officer of the searched person in so far as section 153A in the case of the assessee. Referred, CIT v. Gopi Apartment (2014) 365 ITR 411 (All)(HC).SLP of Revenue is dismissed. (AY. 2011-12)