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| The Tax Publishers2020 TaxPub(DT) 2687 (Del-Trib) INCOME TAX ACT, 1961
Section 153A
When CIT(A) examining the issue in the light of provisions of section 153C found that six assessment years prior to the date of search in this case being the date on which documents etc., were handed-over to AO of assessee should be assessment years 2011-2012 to 2016-2017, hence, there was no jurisdiction with AO to proceed under section 153C for the assessment year 2009-10 under appeal, accordingly, Departmental Appeal had no merit and the same was liable to be dismissed.
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Search and seizure - Assessment under section 153A - Assumption of jurisdiction by AO - Assessee had received share capital and premium from 5 companies which was treated as unexplained cash credit under section 68
A search and seizure action under section 132 was conducted on various business and residential premises of a Group of cases including the premises of Mr. M and Mr. V. Accordingly, a satisfaction note was recorded by AO giving findings that documents belonging to assessee were found at the premises of both the persons and these documents were handed-over to AO of assessee on the basis of which satisfaction note was recorded by AO before issuing notice under section 153A read with section 153C. During the search and post-search proceedings, details relating to the companies giving accommodation entries of share money, share premium, share capital and unsecured loan came to light. AO has referred to the statement recorded during the course of search in assessment order and noted that assessee company had received share capital and share premium from 05 companies and treated the same as unexplained credit under section 68. Held: CIT(A) examining the issue in the light of provisions of section 153C found that six assessment years prior to the date of search in this case being the date on which documents, etc., were handed-over to AO of assessee should be assessment years 2011-2012 to 2016-2017. Thus, there was no jurisdiction with AO to proceed under section 153C for the assessment year 2009-2010 under appeal. Department did not dispute that issue is covered in favour of assessee by Judgment of Delhi High Court in the case of M/s. RRJ Securities Ltd., (2012) 346 ITR 177 (Del.) : 2012 TaxPub(DT) 2131 (Del-HC) in which it was held that date of satisfaction would be when AO assumes position as that of AO of the other person. Therefore, Departmental Appeal had no merit and the same was liable to be dismissed.
Followed:CIT v. RRJ Securities Ltd. & Vica-Versa (2012) 346 ITR 177 (Del.) : 2012 TaxPub(DT) 2131 (Del-HC) CIT (Central) v. Kabul Chawla (2015) 380 ITR 572 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC)
REFERRED : Pr. CIT v. Sarwar Agency Pvt. Ltd. 2017 TaxPub(DT) 4222 (Del-HC) ARN Infrastructure India Ltd. v. Asstt. CIT (2017) 394 ITR 569 (Del.) : 2017 TaxPub(DT) 1216 (Del-HC)
FAVOUR : In assessee's favour
A.Y. : 2009-10
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