VASAMSETTY VEERA VENKATA SATYANARAYANA,HYDERABAD vs. INCOME TAX OFFICER, WARD-4(1), HYDERABAD
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the period of six assessment years preceding the relevant assessment year for section 153C is to be reckoned from the date of the search in the case of the person searched, as per the Supreme Court's decision in CIT vs. Jasjit Singh. Therefore, the assessment for AY 2017-18 under section 153C was valid.
What were the facts?
A search and seizure operation was conducted on a third party, and documents related to the assessee were found. The Assessing Officer issued a notice under section 153C for assessment year 2017-18 based on a satisfaction note recorded later. The assessee contended that the assessment year 2017-18 should not be covered under section 153C.
What were the issues?
The key issue was the interpretation of the period for reckoning the six assessment years under section 153C, specifically whether it relates to the date of search or the date of recording satisfaction by the Assessing Officer.
Which sections of the Income-tax Act were involved?
Section 153C,Section 153A,Section 153(1),Section 143(1),Section 144,Section 143(3)
AI-generated summary — verify with the full judgment below
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- CIT v. Jasjit Singh235 citing155 Taxmann.com 155 · 2023 · SC · Read judgment
Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD
Before: SHRI RAMA KANTA PANDA & SHRI K.NARASIMHA CHARY
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
निर्धारितीती द्वारा /Assessee by: Shri Shrenik Chordia, AR राजस्वजस्व द्वारा /Revenue by: Shri Shakeer Ahamed, DR सुनवाई ई की तारीखरीख/Date of hearing: 25/10/2023 घोषणा की तारीखरीख/Pronouncement on: 27/10/2023 आदेश / ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 28/09/2022 passed by the learned Commissioner of Income Tax (Appeals)-12, Hyderabad (“Ld. CIT(A)”), in the case of Sri Vasamsetty Veera Venkata Satyanarayana (“the assessee”) for the assessment year 2017-18, assessee preferred this appeal along with the Stay Application.
By order dated 23/03/2023, both the appeals and stay applications were disposed of, but subsequently, while allowing MA No. 47/Hyd/2023 in 14/09/2023, the order dated 23/03/2023 insofar as it relates to and the stay application are recalled for hearing on the legal question.
Such a question argued in this appeal is whether the date referred under proviso to section 153(1) of the Income Tax Act, 1961 (for short “the Act”) is relatable to the second proviso to section 153A of the Act only as far as it concerns abatement. In other words, whether the previous year relevant for the six assessment years immediately preceding as referred to under section 153C of the Act, should be the year of the search in the case of the person searched, or the year in which the assessment officer records satisfaction that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of the other person?
Facts giving raise to this question are that the assessee filed the return of income for the year under consideration and it was processed under section 143(1) of the Act. Subsequently, there was a search and seizure operation on 28/02/2017 in the residential premises of one Mr. D. Srinivas Reddy, and in such search, some documents were found relating to M/s. SRD Exports of which the assessee is the proprietor. Satisfaction note was recorded on 15/03/2019 for the assessment year 2017-18 and notice under section 153C of the Act was issued.
Assessment under section 144 read with section 153C of the Act was completed by orders dated 27/12/2019. In appeal, learned CIT(A) granted relief in part. Assessee, however, filed the appeal, challenging the impugned order now contending that inasmuch as the search took place on 28/02/2017 in the case of Mr. D. Srinivas Reddy, in terms of section 153C of the Act, the six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted shall be the six years commencing from 2016-17 and, therefore, the assessment order for the assessment year 2017-18 consequent to the notice issued under section 153C of the Act is bad under law. According to him, assessment for the assessment year 2017-18 should have been under section 143(3) of the Act only.
At the outset, learned DR submitted that this issue has squarely been covered by the decision of the Hon’ble Apex Court in the case of CIT vs. Jasjit Singh (2023) 155 taxmann.com 155 (SC) wherein the Hon’ble Apex Court dealt with the question of interpretation of section 153C(1) of the Act and the Parliamentary intent to enact the proviso, and held that it was to cater not merely to the question of abatement, but also with regard to the date from which the six years period was to be reckoned, in respect of which the returns were to be filed by the third party (whose premises are not searched and in respect of whom the specific provision under section 153C of the Act was enacted), and that such a period has to be reckoned from the date the materials were forwarded to the learned Assessing Officer of the party, whose premises are not searched.
Respectfully following the above decision, we do not find any merit in the contentions raised by the learned AR and consequently, we dismiss the said contention.
In the result, appeal of the assessee stands dismissed. So also, the Stay Application. Order pronounced in the open court on this the 27th day of October, 2023.
More judgments on Section 153C
- Neepaben Sunnybhai Motwani, Rajkot vs Income Tax Officer, RajkotITA 875/RJT/2026[2021-22]Status: Disposed19 Oct 2026AY 2021-22
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- Ajay Singh, Kota vs DCIT, Central Circle, KotaITA 495/JPR/2026[2016-17]Status: Disposed13 Oct 2026AY 2016-17
- Dineshkumar Chhaganlal Manavadaria, Junagadh vs ITO Ward 1, JunagadhITA 837/RJT/2025[2020-21]Status: Disposed9 Oct 2026AY 2020-21
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