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Facts
The Revenue filed four appeals against the CIT(A)'s common orders for Assessment Years 2012-13 to 2015-16, challenging the validity of assessments made under section 153C read with section 143(3) of the Income Tax Act. The primary contention revolved around whether these assessment years fell within the permissible look-back period for initiating 153C proceedings, considering the date of satisfaction recorded and subsequent statutory amendments.
Held
The Tribunal held that the Assessing Officer's satisfaction note under section 153C, recorded on 07.06.2021, did not cover the assessment years 2012-13 to 2015-16 under the relevant six-year look-back period. Despite the Revenue's argument for a ten-year period under amended provisions (Finance Act, 2017), it failed to demonstrate that the satisfaction note itself complied with these amended conditions. Consequently, the Tribunal quashed all four assessments, finding them invalid.
Key Issues
Validity of section 153C assessments for AYs 2012-13 to 2015-16, concerning the permissible look-back period and the proper application of amended provisions regarding the satisfaction note.
Sections Cited
153C, 143(3), 153A
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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh
ORDER
Per Satbeer Singh Godara, Judicial Member:
These Revenue’s instant four appeals to 2681/Del/2022, for Assessment Years 2012-13 to 2015-16, arise against the CIT(A)-3, Gurgaon’s common orders dated 31.08.2022 in case No. 10213, 10289, 10689 & 11074/CIT(A)- 3/GGN/2021-22 in proceedings u/s 153C r.w.s. 143(3) of the Income Tax Act, 1961 (in short “The Act”).
Heard both parties at length. Case files perused.
It transpires during the course of hearing that the Revenue’s instant four appeals raise the first and foremost question of validity of the impugned section 153C assessment itself going to root of the matter. This is for the precise reason that section 153C(1) first proviso stipulates that in case of a person other than the searched person against whom the to 2681/Del/2022 2 Ashoka Traders Pvt. Ltd. relevant proceedings are to be initiated, the date of initiation of search………………..shall be construed as reference to the date of receiving the books of account or documents………….by the Assessing Officer having jurisdiction. We note in this statutory backdrop that the learned Assessing Officer had recorded his section 153C satisfaction on 07.06.2021 which ought to be taken as the date of initiation of search in very terms.
Faced with this situation, we invited learned CIT-DR’s attention to the fact that counting backward from this clinching date, the relevant six assessment years immediately preceding to the assessment year do not cover these four assessment years A.Y.’s 2012-13 to 2015-16. Mr. Akhtar at this stage quoted the statutory amendment inserted “for the relevant assessment year or years referred to sub-section (1) to section 153A(1) proviso made applicable to section 153C(1) to buttress the point that these four assessment years very well fall within “ten” assessment years and therefore, the impugned proceedings have been validity initiated against the assessee.
We have given our thoughtful consideration of the Revenue’s foregoing vehement contentions and find no merit therein in light of PCIT Vs. Ojjus Medicare Pvt. Ltd. & Others (2024) 465 ITR 101 (Del.) wherein their lordships made it clear in para 119 (G) and (H) that the corresponding section 153C satisfaction note itself must take note of the relevant conditions as per the foregoing amendment made applicable by the legislature vide Finance Act, 2017 w.e.f. 01.04.2017 onwards.
We wish to make it clear that neither the learned Assessing Officer’s assessment nor the departmental side during the course of hearing has been able to prove the to 2681/Del/2022 3 Ashoka Traders Pvt. Ltd. foregoing compliance for the purpose of invoking the amended provision in assessee’s case by producing the relevant satisfaction note. We thus find merit in the assessee’s instant first and foremost legal argument and quash all these four assessments in very terms. Ordered accordingly.
All other pleadings on merit in these four appeals stand rendered academic.
These Revenue’s four appeals to 2681/Del/2022 are dismissed in above terms. A copy of this common order be placed in the respective case files. Order Pronounced in the Open Court on 27/11/2024.