“record date”
The decision most relied on for record date is CIT v. Calcutta Knitwears (362 ITR 673), cited in 528 judgments on BharatTax.
Leading authorities on record date
The recording of a satisfaction note by the Assessing Officer is a jurisdictional prerequisite for assessments under Section 153C, and the six-year limitation period for such assessments is reckoned from the date this satisfaction is recorded.
The date of initiation of penalty proceedings for the purpose of Section 275(1)(c) is when the Assessing Officer records a satisfaction or recommends penalty, not the later date when the Joint/Additional Commissioner of Income Tax issues the penalty notice.
During a search operation, the authorized officer recording a statement under Section 132(4) must fully explain Explanation 5 to Section 271(1)(c) to the assessee, particularly the requirement to specify the manner of earning undisclosed income, for a valid claim of penalty immunity. Income not declared or advance tax not paid proportionately before the search date is treated as undisclosed, thereby disallowing advance tax benefits.
For assessments under Section 153C concerning a non-searched person, the date of recording the satisfaction becomes the date of search for that other person. The satisfaction recorded under Section 153C is the cornerstone for initiating proceedings, with the physical transmission of documents merely aiding the opinion formation.
An assessment order is time-barred if the department fails to prove that the order was dispatched within the prescribed period of limitation. The burden lies on the department to make the dispatch date available from records to establish timely issuance.
Additions to income cannot be made solely based on uncorroborated loose sheets or papers found during a search operation. The Assessing Officer must bring on record corroborative material, establish authenticity through investigation and correlation, and ensure such documents contain necessary details like names and dates of payments.
The court examines a transaction involving the purchase and sale of UTI units with a short holding period, highlighting the cum-dividend purchase in relation to a booking closing date.
The issuance of a notice under Section 148 of the Income Tax Act on the same date as the recording of reasons and approval from the Joint CIT is considered valid. The case distinguishes between situations where returns are filed within the allowed time and those involving reassessment.
