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Facts
A search operation under Section 132 of the Income Tax Act was conducted on 23/07/2015, revealing incriminating documents related to the Assessee for an investment of Rs. 105 lakhs. The AO of the searched person recorded satisfaction on 03/10/2018, leading to assessment proceedings under Section 153C for AY 2011-12, culminating in an assessment order on 28/12/2018. The Ld. CIT(A) subsequently set aside this assessment order, prompting the Department to appeal and the Assessee to file a cross-objection in support of the CIT(A)'s decision.
Held
The Tribunal held that the satisfaction note dated 03/10/2018 defines the deemed date of search. As per Section 153C, assessment can only be initiated for the six assessment years immediately preceding the financial year in which satisfaction is recorded (FY 2018-19, covering AY 2013-14 to 2019-20). Since AY 2011-12 falls outside this six-year period, the AO lacked jurisdiction. Therefore, the Tribunal upheld the CIT(A)'s order, dismissing the Department's appeal and rendering the Assessee's cross-objection infructuous.
Key Issues
Whether the assessment initiated under Section 153C for Assessment Year 2011-12 was valid, given the date of satisfaction recorded by the AO falling outside the prescribed six-year period for such proceedings.
Sections Cited
Section 132, Section 153C, Section 143(3), Section 153C(1)
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Income Tax Appellate Tribunal, DELHI BENCH ‘C’: NEW DELHI
Before: BEFORE SHRI SHAMIM YAHYA & SHRI YOGESH KUMAR U.S.
per Section 153C of the Act. Thus, we find no error or infirmity in the order of the Ld. CIT(A) in setting aside the Assessment Order. Thus, finding no merits in the Grounds of appeal of the Revenue, we dismiss the appeal of the
Since, we have dismissed the Appeal Revenue, the Cross Objection No.
15/Del/2024 filed by the Assessee becomes in-fructuous. In the result, the Assessee’ in C.O No. 15/Del/2024 is dismissed.
Order pronounced in open Court on 19th December, 2024