Bina Fashions N. Foods (P) Ltd. v. DCIT

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The Tax Publishers2020 TaxPub(DT) 0351 (Del-Trib)

INCOME TAX ACT, 1961

Section 153C

First proviso to section 153C provides that six assessment years in which assessment or reassessments could be made under section 153C would have to be considered with reference to date of handing over of assets or documents to AO of other person, i.e., assessee. In the instant case, impounded documents had been received by AO on 29-1-2014 when satisfaction under section 153C had been recorded. Therefore, six assessment years under section 153C in case of assessee would be assessment years 2008-09 to 2013-14, whereas AO in satisfaction note initiated proceedings under section 153C for assessment years 2006-07 to 2011-12, which was illegal and not sustainable.

Search and seizure - Assessment under section 153C - Validity - Initiation of proceedings in respect of assessment years not covered within period of six years from the date of recording of satisfaction note by AO

AO initiated proceedings under section 153C in respect of assessment years 2006-07 to 2011-12. Assessee challenged this on the ground of AO having recorded this on the ground of AO having recorded satisfaction under section 153C on 29-1-2014. Held: First proviso to section 153C provides that six assessment years in which assessment or reassessments could be made under section 153C would have to be considered with reference to date of handing over of assets or documents to AO of other person, i.e., assessee. In the instant case, impounded documents had been received by AO on 29-1-2014 when satisfaction under section 153C had been recorded. Therefore, six assessment years under section 153C in case of assessee would be assessment years 2008-09 to 2013-14, whereas AO in satisfaction note initiated proceedings under section 153C for assessment years 2006-07 to 2011-12, which was illegal and not sustainable.

Followed:Bnb Investment & Properties & Anr. v. Dy. CIT (2018) 68 ITR 567 (Del-Trib) : 2018 TaxPub(DT) 5195 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-2013

IN THE ITAT, DELHI BENCH