S. 153C : Assessment-Income of any other person-Search-On money -Six assessment years-Date of search-Date of receipt of seized material-Relevant assessment year -Search was conducted prior to the Finance Act , 2017-Search was conducted before the Finance Act, 2017, power to assess block period of ten years could not be attracted in case of a search which had taken place prior to 1-4-2017- Satisfaction note for the asessee being a non -searched party in AY. 2018-19–Order passed is beyond permissible period of six years-Assessment order for the Assessment year 2011 -12 is quashed. [S. 69A, 132, 153A]
Search and seizure action on Sarthav Infra Pvt. Ltd. was conducted on December 04, 2014. The information was received by the Assessing Officer on March 16, 2018 , i.e. AY. 2018 19). The notice under section 153C was issued on April 04, 2018. Therefore six years prior to AY. 2018-19 would be the period between AY. 2012-13 to 2017-18, therefore, AY. 2018-19 falls beyond the period of six years and hence the proceedings are time barred. On appeal the CIT(A) held that the date of information received was 31-3-2018 is to be considered. The AY. 2011-12 is beyond the period of six assessment years but within period of 10 years from the AY. In which the documents pertaining to the appellant have been received. Accordingly the dismissed the ground of limitation. On appeal, the Tribunal held that the AO had no jurisdiction to initiate proceeding under section 153C of the Act for the AY. 2011-12. Search was conducted before the amendment and also satisfaction note for the assessee being a non searched party in AY. 2018-19. Search was conducted before the Finance Act, 2017, power to assess block period of ten years could not be attracted in case of a search which had taken place prior to 1-4-2017. Accordingly, the order passed under section 153C r. w.s 143 (3) of the Act was beyond permissible of six years. (ITA No. 4024/Mum/2024 / 4512/Mum/2024 dt 20-12-2024. Followed PCIT v. Karina Air Lines International Ltd (ITA No. 690/2023 dated 2-8-2024 ) (2024) 165 Taxmann.com 421 (Delhi)(HC) (AY. 2011-12)
Rupesh Kantilal Savla v. ACIT (Mum.)(Trib.) www.itatonline .org
[Coram : Hon’ble Smt. Beena Pillai, Judicial Member & Hon’ble Shri Prabhash Shankar, Accountant Member]