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2022 (5) TMI 1282 - AT - Income TaxAssessment u/s 153C - Period of limitation - Validity of assessment order framed u/s 143(3) - HELD THAT:- As carefully perused the orders of the authorities below. We are of the considered view that in the case of a person other than a “Searched Person”, provisions of section 153C of the Act are applicable and in such a case, the date of search or date of requisition, as referred to in Section 153A of the Act is substituted by the date of handing over of documents by the Assessing Officer of the “Searched Person” to the Assessing Officer of the “Other Person”. Since the date of recording satisfaction is 02.12.2016 which falls in the previous F.Y. 2016-17 relevant to Assessment Year 2017-18, the immediately preceding six years are Assessment Years 2011-12 to 2016-17. Thus, the year under appeal clearly falls in the block of six years covered by section 153C of the Act. Thus, the assessment for Assessment Year 2015-16 could have been made only u/s 153C of the Act after compliance of provisions of that section. We draw support from the decisions of the Hon'ble High Court of Delhi in the case of RRJ Securities Ltd [2015 (11) TMI 19 - DELHI HIGH COURT] and ARN Infrastructure India Ltd [2017 (4) TMI 1194 - DELHI HIGH COURT] Assessment order dated 31.12.2016 is framed u/s 143(3) of the Act for the impugned Assessment Year 2015-16. In our considered view, this year falls within the period of six years when counted from the date of recording satisfaction note u/s 153C of the Act which is the deemed date of search. The Act has been amended recently by the Finance Act, 2017 with prospective effect i.e. Assessment Year 2018-19. Therefore, we hold that the assessment order framed u/s 143(3) of the Act on the facts of the case is invalid. We, accordingly, hold the assessment order as bad in law. Decided in favour of assessee.
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