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2020 (4) TMI 124 - AT - Income TaxValidity of Assessment order passed u/s 143(3)/153A instead of u/s 153C - In the present case assessee is not a ‘searched person’, but ‘a person other than searched person’ - scope of amendment made in 153C - HELD THAT:- According to Section 153A of the Act assessment or re-assessment relating to any assessment year falling within the period of 6 assessment year pending on the date of initiation of the search under Section 132 would abate. Apparently in this case the date of search is 16.07.2009 and this year’s period would be assessment year 2004-05 to assessment year 2009-10. Therefore, it is apparent that the assessee for assessment year 2008-09 should have been made under Section 153C of the Act and not under Section 143(3) of the Act as has been done. The Hon’ble Delhi High Court in the case of Pr. CIT Vs. Sarwar Agency Pvt. Ltd. [2017 (8) TMI 733 - DELHI HIGH COURT] clearly covers the issue in favour of the assessee. Amendment made in 153C of the Act by the Finance Act applies from 1st April, 1970 which covers the issue that hence-forth the period of the search pressing as well as the other person would be the same sixth assessment years immediately proceeding the year of search. However, the above amendment does not apply to the assessment year 2008-09 as the impugned assessment order has been passed under Section 143(3) of the Act same is not sustainable in law. Assessing Officer himself has not considered the assessment year 2008-09 as covered under Section 153C of the Act. The assessing Officer has issued notice in the impugned assessment year under section 143(2) of the Act and thus passed the assessment order under Section 143(3) of the Act. The above assessment order passed was not in pursuance of any notice issued under Section 153C of the Act. In view of the above facts we found that the impugned assessment order passed under Section 143(3) of the Act is invalid as such assessment order should have been passed under Section 153C - Decided in favour of assessee.
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