2015 (10) TMI 2775 - HC - Income Tax

Assessment u/s 153A - whether the proviso to Section 153C (1) of the Act is confined to the second proviso to Section 153A (1) of the Act and therefore applies on to cases of abatement of pending assessments? - HELD THAT - In decision in SSP Aviation Limited v. Deputy Commissioner of Income Tax 2012 (4) TMI 335 - DELHI HIGH COURT it was categorically held that in the case of the other person the question of both pendency and abatement of the proceedings of assessment or reassessment would be examined with reference to the date of handing over the books of account or documents or Assessing Officer having jurisdiction over such other person. No substantial question of law arises in the facts and circumstances of the present case.

Summary

Issues:
1. Delay in filing the appeal.
2. Interpretation of Section 260A of the Income Tax Act 1961.
3. Validity of assessment under Section 143(3) for AY 2009-10.
4. Application of proviso to Section 153C (1) of the Act.

Delay in filing the appeal:
The High Court condoned a 15-day delay in filing the appeal, and the application was disposed of accordingly.

Interpretation of Section 260A of the Income Tax Act 1961:
The appeal by the Revenue under Section 260A was directed against the order passed by the Income Tax Appellate Tribunal (ITAT) in a transaction involving the sale and purchase of share capital. The Court referred to previous decisions to establish that the date for abatement of proceedings for assessment or reassessment for the Assessee would be the date of receiving the relevant seized material by the Assessing Officer having jurisdiction over the Assessee. The Court emphasized that the assessment made under Section 143(3) for the AY 2009-10 was not valid based on the facts presented.

Validity of assessment under Section 143(3) for AY 2009-10:
The Court dismissed the appeal by the Revenue, stating that no substantial question of law arose in the present case. The Court highlighted that the assessment made under Section 143(3) for the AY 2009-10 was not valid, as the satisfaction note was prepared by the Assessing Officer on a specific date, leading to the conclusion that the assessment was not valid.

Application of proviso to Section 153C (1) of the Act:
The Court addressed the issue of whether the proviso to Section 153C (1) of the Act is confined to the second proviso to Section 153A (1) of the Act and applies only to cases of abatement of pending assessments. The Court reiterated that in the case of the other person, the question of both pendency and abatement of proceedings for assessment or reassessment would be examined with reference to the date of handing over the books of account or documents to the Assessing Officer having jurisdiction over such other person. Consequently, the Court found that no substantial question of law arose in the present case and dismissed the appeal.

In conclusion, the judgment addressed various issues related to the interpretation of relevant sections of the Income Tax Act 1961, the validity of assessments, and the application of specific provisions concerning abatement of pending assessments. The Court's decision was based on established legal principles and previous judgments, ultimately leading to the dismissal of the appeal by the Revenue.