|The Tax Publishers2020 TaxPub(DT) 4029 (Del-Trib)
INCOME TAX ACT, 1961
Though concerned assessment year 2008-09 was covered by provision of section 153C, however, no notice under section 153C was issued instead AO issued notice under section 143(2) and assessment order was passed under section 143(3). Therefore, assessment order passed by AO was quashed as invalid.
Search and seizure - Assessment - Validity - Concerned assessment year covered within provisions of section 153C
Search took place on BPTP Group on 15-11-2007 wherein certain incriminating material was found belonging to assessee. AO recorded satisfaction note on 26-8-2009 and issued notice under section 153C for assessment year 2002-03 to assessment year 2007-08. Further, no notice under section 153C was issued for assessment year 2008-09. Instead, assessment for the year was made by issuing notice under section 143(2). Consequently, assessment was made under section 143(3) on 31-12-2009. Held: According to section 153C(1) date of search in case of person other than searched person would be postponed to the date of receipt of books of account or necessary documents by jurisdictional AO. Correspondingly, period of orders would be reckoned with respect to such date, therefore, as the satisfaction note was recorded on 26-8-2009, corresponding 6 assessment years covered under the scope of section 153C would be starting from assessment year 2004-05 to 2009-10. Consequently, concerned assessment year 2008-09 was covered by provision of section 153C. Thus, necessarily it should have been made under section 153C of the Act. Admittedly, no notice under section 153C was issued to the assessee for this assessment year. Instead, notice under section 143(2) was issued and assessment order was passed under section 143(3). Therefore assessment order passed by AO ws quashed.
FAVOUR : In assessee's favour.
A.Y. : 2006-07
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