The Tax Publishers2021 TaxPub(DT) 1931 (Del-Trib)

INCOME TAX ACT, 1961

Section 153C, Proviso 143(3)

Documents pertaining to assessee had been transferred to AO of Central Circle on 29-8-2013. Hence, as per first proviso to section 153C, date of search in case of assessee would be 29-8-2013 which would fall in assessment year 2014-15, therefore, previous six years period was to be reckoned from this date which would mean the relevant assessment year of the search in case of assessee would be from assessment years 2008-09 to 2013-14. AO instead of passing the assessment order under section 153C, passed the assessment order under section 143(3) which was illegal and bad in law. Therefore, assessment order was quashed as invalid.

Assessment - Under section 143(3) - Validity - Concerned assessment year whether covered within six years period as per proviso to section 153C

Search and seizure action was conducted in case of M/s. Krrish Realty Nirman (P) Ltd., on 9-11-2011. Thereafter, survey was conducted at premises of assessee on 5-11-2011 and his Company M/s. Ambawata Buildwell (P) Ltd., jurisdiction over the case of assessee was transferred to CIT, Central, Gurgaon vide Order, dated 12-8-2013, who transferred the case to AO of Central Circle-1, Faridabad and the seized documents were received in the same Central Circle on 29-8-2013. Thereafter, AO framed assessment under section 143(3). Assessee contended that AO erred in framing assessment of the concerned year under section 143(3), instead of passing the Order under section 153C.Held: It is an admitted fact that documents pertaining to assessee had been transferred to AO of Central Circle on 29-8-2013. Hence, as per first proviso to section 153C, date of search in case of assessee would be 29-8-2013 which would fall in assessment year 2014-15, therefore, previous six years period was to be reckoned from this date which would mean the relevant assessment year of the search in case of assessee would be from assessment years 2008-09 to 2013-14. AO, instead of passing the assessment order under section 153C, passed the assessment order under section 143(3) which was illegal and bad in law. Therefore, assessment order was quashed as invalid.

Relied on:BNB Investment & Properties Ltd. v. Dy. CIT (2018) 68 ITR 567 (Del-Trib) : 2018 TaxPub(DT) 5195 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-2014


INCOME TAX ACT, 1961

Section 254(1)

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