2023 (5) TMI 1097 - AT - Income Tax

Assessment u/s 153C - Period of limitation - date of recording of satisfaction - satisfaction recorded in searched person and the person other than the searched person - Scope of amended provisions of section 153C - HELD THAT:- As decided in own case [2022 (2) TMI 1270 - ITAT DELHI] once the amended provisions of sections 153A and 153C are applicable in respect of search and seizure operation initiated u/s 132 or requisition made u/s 132A post 01.04.2017, the provisions of sections 153A and 153C would be applicable to the same set of assessment years, both in case of the searched person and the person other than the searched person.

In case of other person u/s 153C starting point for computation of the block period would be the date from on which based on the seized documents, notice is issued to the other person - As further held that the amendment made in section 153C by Finance Act 2017 w.e.f. 1st April 2017 which states that block period for the “searched person” as well as the “other person” would be same six AYs immediately preceding the year of search is only prospective. It makes the things clear that the search that took place in this case is prior to amendment unaffected by the amendment made by way of Finance Act 2017.

Impugned assessment order passed u/s 153C is wholly without jurisdiction, hence, invalid. Accordingly, we quash the same. Consequently, the order of Commissioner (A) is set aside. - Decided in favour of assessee.