SRG CUSTODIANS AND SECURITIES (INDIA) LTD.,GUWAHATI vs. DCIT CENTRAL CIRCLE 31, NEW DELHI

The assessee is an individual having income from house property and other sources during the year under consideration filed return of income under Section 139(1) of the Act on 16.03.2022 declaring income at Rs.68,49,230/-. Subsequently, the case of the assessee was selected for scrutiny and notice under Section 143(2) dated 30.06.2022 was issued by Circle 2(1)(1) Kanpur which was delivered on the registered email Id of the assessee followed by notices under Section 142(1) along with questionnaire. Prior to that during the course of search operation under Section 132(4) of the Act dated 06.01.2021 at the premises of Praveen Kumar Jain his mobile was seized and data was forensically extracted wherefrom whatsapp images related to construction expenses were found during the whatsapp chat of Praveen Kumar Jain and Vaibhav Jain; cash components were found to have been involved for construction of the property lying and situated at C-192, Nirman Vihar. Satisfaction notes dated 30.07.2022 and 30.12.2022 were duly recorded by the DCIT, CC-3, Delhi in the case of searched person Shri Praveen Kumar Jain and Smt. Sita Gupta, the non searched person and the assessee before us, observing that cash to the tune of Rs.50 lakhs was not declared by the Sita Gupta and M/s SRG Custodian and Securities (India) Ltd. in regard to the said property lying at Nirman Vihar.

On the other hand, the assessment under Section 143(3) was finalized on 31.12.2022 declaring total income at Rs. 93,49,230/- by making addition of Rs.25 lakhs on account of unexplained income under Section 69C r.w.s 115BBE of the Act which was further confirmed by the First Appellate Authority.

It is the case of the assessee before us that the satisfaction was recorded on 30.12.2022 for initiation of proceeding under Section 153C r.w.s 153A of the Act in the case of Sita Gupta, the assessee before us for AY: 2015-16 to 2021-22 whereas it is the trite law that the date of recording of satisfaction under Section 153C will be deemed date of search which is 30.12.2022 in the present case six years period would be reckoned from this date i.e. 30.12.2022.

Accordingly, assessment year relevant for previous year in which search was conducted in the present year will be A.Y. 2023-24 and the relevant for the previous year in which search was conducted for initiating proceedings under Section 153C of the Act will be A.Y. 2017- 18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23.

The above case made out by the assessee is found to be acceptable in view of various decisions of Coordinate Benches of the Hon’ble ITAT Delhi rendered against the various assessment orders passed by the Central Circle, New Delhi under Section 143(3) for AY. 2021-22 in the same search of Hans Group and cloned data of Parveen Kumar Jain copies whereof are also been considered by us.

Thus, following the ratio laid down in the aforesaid judgments, it is held that the impugned order of assessment passed under Section 143(3) dated 31.12.2022 ought to have been under Section 153C of the Act. Thus, the order of assessment is quashed.

Having regard to the identical facts and circumstances of the matter as already dealt with hereinabove also involved in the case in hand the observation and the decision passed in is applied mutatis mutandis. This appeal filed by the assessee is also allowed.

Both the appeals preferred by the assessee are allowed.