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2024 (3) TMI 955 - HC - Income TaxValidity of assessment u/s 153C - Period of limitation - Assessment of income of any other person - recording of satisfaction about seven years after search - HELD THAT:- The question as to whether these proceedings are barred by limitation should be addressed with reference to the judgment in Jasjit Singh [2023 (10) TMI 572 - SUPREME COURT] Effectively, the Supreme Court held that the person, other than the searched person, would be gravely prejudiced if the papers were to be handed over to the jurisdictional assessing officer of such person after about four years. In the case at hand, the search in the premises of Mr. Thirumalaivasan was carried out on 11.10.2012, whereas the satisfaction note was recorded only on 27.03.2019. It is also significant to notice that the assessing officer of the searched person and the petitioner were the same and the recording of satisfaction about seven years after search is unjustified. If the limitation period of six years is reckoned from the date on which satisfaction was recorded, which falls within financial year 2018-2019 or assessment year 2019-2020, the respondent could only have reached back up to assessment year 2013-2014. Therefore, the proceedings in respect of both these assessment years are undoubtedly barred by limitation. It should also be noticed that the periods specified in Section 153B for completion of assessment had also lapsed. The impugned assessment orders are quashed as being barred by limitation. Decided in favour of assessee.
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