INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Time limit -

Search was conducted in assessee's case on 5-10-2017. Assessee challenged validity of search assessment under section 153A framed for assessment year 2009-10 pleading that since search was conduced on 5-10-2017 therefore, relevant asessment year was assessment year 2018-19. Hence, assessment year preceding to the year of search was assessment year 2017-18. Hence, six years were to be reckoned from assessment year 2017-18. Held: Amendment introduced by the Finance Act, 2017 also talks about issuance of notice under section 153A, with certain conditions it can be issued beyond six assessment years but up to ten assessment years. That means while computing ten assessment years, the starting point has to be the end of the search assessment year. As per amended provisions of section 153A(1)(b), search assessment year, in the instant assessment year 2018-19 was to be excluded. 10th assessment year counted from this assessment year 2018-19 was assessment year 2009-10 and notice issued under section 153A for assessment year 2008-09 could not have been issued.

Relied:W.P. (MD) No. 4327 of 2021 : 2021 TaxPub(DT) 3286 (Mad-HC) and A.R. Safiulla v. Asst. CIT, Central Circle-1, Trichy, Order dated 24-3-2021.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

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