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2022 (10) TMI 569 - MADRAS HIGH COURTAssessment u/s 153A/153C - time frame for framing of an assessment - Capital gains arising from a transaction of sale of property - HELD THAT:- The time frame for framing of an assessment in terms of Section 153C has been fixed bearing in mind the practical consideration that, assimilation of materials relating to the third person to whom those assessments relate, is bound to take some time. More often than not, it is only upon completion of the primary assessments (under S.153A) that the Assessing Officer even comes to a reasoned conclusion as to whether proceedings are to be initiated against such other person or not. Thus, the transmission of seized materials/books/financials relating to the third person could take place at some distance of time from the framing of the Section 153A assessments. It is for this reason that Section 153C(2) provides for the framing of the assessment in respect of the year of search as well, subject to the seized materials being received by the Assessing Officer after the due date for furnishing of the return of income for the year of search. The handing over of the materials is before the due date for filing of returns which, in both cases, is 31.08.2018. In addition, the applicability of the situations adumbrated under clauses (a), (b) and (c) must be tested. The three conditions operate on a stand-alone basis, separated by the conjunction 'or', and not concurrently and the satisfaction or otherwise of any one of the three conditions would suffice to decide the question of jurisdiction. The second and third conditions are inapplicable since both petitioners have filed returns of income and no assessments have been framed. Condition (b) reads as follows, ‘(b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired'. In the case of the petitioner the return has been filed on 26.09.2018 under Section 139(4), and is thus a valid return. Notice under Section 143(2) has been issued on 27.08.2019, also within time. Condition (b) is thus not satisfied and no proceedings may be initiated under Section 153C. The impugned order of assessment is set aside and this Writ Petition is allowed.
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