The Tax Publishers2020 TaxPub(DT) 0731 (Del-Trib)

INCOME TAX ACT, 1961

Section 143(3)

Relevant assessment years to be covered under assessment under section 153C were assessment years starting from assessment year corresponding to the year in which assets/documents belonging to other person are handed over to AO of other person, in which AO of other person recorded the satisfaction note. In the instant case, satisfaction note was recorded by AO of other person, i.e., assessee on 23-7-2010. Therefore, relevant assessment, years covered under section 153C would be assessment years 2010-11 downwards as date of handing over/date of recording satisfaction by AO of assessee would be deemed to be date of search and accordingly, there was no justification for AO to pass order under section 143(3) for assessment year 2010-11. Hence, assessment order under section 143(3) was quashed.

Assessment - Under section 143(3) - Validity - Concerned assessment year being covered under section 153C

During search and seizure operation carried out in Raj Darbar Group of cases on 31-7-2008 various papers belonging to the assessee-firm were found and seized. Documents were handed over and satisfaction by AO of the assessee was recorded on 23-7-2010. AO framed assessment for assessment year 2010-11 under normal provisions under section 143(3). Assessee sought quashing thereof. Held: Relevant assessment years to be covered under assessment under section 153C were assessment years starting from assessment year corresponding to the year in which assets/documents belonging to other person are handed over to AO of other person, in which AO of other person recorded the satisfaction note. In the instant case, satisfaction note was recorded by AO of other person, i.e., assessee on 23-7-2010. Therefore, relevant assessment, years covered under section 153C would be assessment years 2010-11 downwards as date of handing over/date of recording satisfaction by AO of assessee would be deemed to be date of search and accordingly, there was no justification for AO to pass order under section 143(3) for assessment year 2010-11. Hence, assessment order under section 143(3) was quashed.

Relied:CIT v. RRJ Securities Ltd. (2015) 62 taxmann.com 391 (Del.) : 2015 TaxPub(DT) 4278 (Del-HC),Pepsico India Holdings Pvt. Ltd. v. Asstt. CIT & Anr. (2014) 50 taxmann.com 299 (Del.) : 2014 TaxPub(DT) 3925 (Del-HC) and Bnb Investment & Properties & Anr. v. DCIT (2018) 68 ITR 567 (Del-Trib) : 2018 TaxPub(DT) 5195 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-2011

IN THE ITAT, DELHI BENCH

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