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Facts
A search and seizure operation was conducted on 02/11/2017. Documents pertaining to the assessee were handed over to the AO on 24/06/2021, who recorded satisfaction u/s 153C for AY 2013-14 and issued a notice. The assessment was completed with additions. The CIT(A) allowed the assessee's appeal.
Held
The Tribunal held that as per Section 153C, action can be taken for six assessment years preceding the year in which satisfaction was recorded. The assessment year 2013-14 was outside the purview of Section 153C, as it was beyond the permissible period.
Key Issues
Whether the assessment proceedings under Section 153C of the Income Tax Act, 1961, for Assessment Year 2013-14 were validly initiated, given the date of satisfaction and handover of seized documents.
Sections Cited
132, 153C, 147, 148, 143(3)
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Income Tax Appellate Tribunal, DELHI
Before: SHRI M. BALAGANESH & SH. YOGESH KUMAR U.S.
Assessee by Shri Rajat Jain, CA and Shri Akshat Jain, CA Revenue by Ms. Meenakshi Dohare, CIT(DR) Date of Hearing 19/05/2025 Date of Pronouncement 19/05/2025 ORDER
PER YOGESH KUMAR, U.S. JM:
The present appeal is filed by the Department of Revenue against the order of the Commissioner of Income Tax (Appeals)-26, New Delhi (‘Ld. CIT(A)’ for short)- dated 16/08/2024 pertaining to the Assessment Year 2013-14.
Brief facts of the case are that, a search and seizure operation under Section 132 of the Income Tax Act, 1961 ('Act' for short) was carried out at the residential premises of Prahlad Kumar Aggarwal in the case of Rajesh Jain group of cases on 02/11/2017, wherein the A.O. of the search person recorded satisfaction in the case of Appellant that the certain documents pertaining to the Assessee herein which have baring on determination of total income for the Assessment Year under consideration and handed over the same along with seized documents to the A.O. of the Assessee on 24/06/2021. The A.O. of the Assessee has also recorded satisfaction u/s 153C of the Act for the year under consideration i.e. A.Y. 2013-14 on 24/06/2021 and issued notice u/s 153C of the Act. The assessment proceedings u/s 153C of the Act were completed on 31/12/2022 by making certain additions.
Aggrieved by the assessment order dated 31/12/2022, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 16/08/2024,allowed the Appeal filed by the Assessee by relying on Judgment of Ld. CIT Vs. RRJ Securities 380 ITR 612, Ld. CIT Vs. Singbad Technical Education Society: 397 ITR 344 and PCITVs.
Central-1, Ojjus Medicare Pvt. Ltd. [2024] (4) TMI 258 (Del.). Aggrieved by the order of the Ld. CIT(A) dated 16/08/2024, the Department of Revenue preferred the present Appeal.
The Ld. Departmental Representative relying on the assessment order submitted that the Ld. CIT(A) has committed grave error in allowing the Appeal.
Per contra, the Ld. Assessee's Representative relying on the order of the Ld. CIT(A) sought for dismissal of the Appeal of the Revenue contending that the issue involved in the present Appeal is decided by the various Courts in favour of the Assessee, thus sought for dismissal of the Appeal of the Revenue.
We have heard both the parties and perused the material available on record. In the present case date of handing over of seized document from the A.O. of the searched party is on 24/06/2021. As per the provision of Section 153C of the Act, the date of satisfaction and handing over the seized material would be the deemed date of search in so far as the Assessee is concerned. Therefore, action can be taken u/s 153C of the Act in respect of six Assessment Years from preceding year in which satisfaction was recorded, accordingly, the notice u/s 153C of the Act can be issued for Assessment Year 2016-17 to 2021-22 and not for the Assessment Year under consideration i.e. 2013-14. Therefore, the assessment year under consideration i.e. 2012-13 of the Assessee is outside the purview of Section 153C of the Act. The said issue is also not res-integra, as the various High Courts have laid down the ratio in favour of the Assessee and also the Hon’ble Supreme Court in the case of Commissioner of Income Tax Vs. Jasjit Singh [2023] 155 taxmann.com 155(S.C) in SLP Appeal (C) No. 6566 of 2023 vide order dated 26/09/2023.Thus, we find no error or infirmity in the order of the Ld. CIT(A) in deleting the addition.
In the result, the Appeal of the Revenue is dismissed.
Order pronounced in the open court on 19th May, 2025