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2024 (5) TMI 905 - ITAT DELHIValidity of Assessment u/s 153C - Requirement of satisfaction note for initiating proceedings u/s 153C - date from which the six year period was to be reckoned, in respect of which the returns were to be filed by the third party (whose premises are not searched) - as argued based on the date of recording of satisfaction, the Assessment made u/s 144 r.w.s. 142(1) is outside the scope of said Section u/s 144 r.w.s. 142(1) and the assessment ought to have been made u/s 153C HELD THAT:- As decided in RRJ Securities Ltd. [2015 (11) TMI 19 - DELHI HIGH COURT] the recording of a satisfaction that the assets/documents seized belong to a person other than the person searched is necessarily the first step towards initiation of proceedings under Section 153C of the Act. In the case where the AO of the searched person as well as the other person is one and the same, the date on which such satisfaction is recorded would be the date on which the AO assumes possession of the seized assets/documents in his capacity as an AO of the person other than the one searched. The rationale appears to be that whereas in the case of a searched person the AO of the searched person assumes possession of seized assets/documents on search of the Assessee; the seized assets/documents belonging to a person other than a searched person come into possession of the AO of that person only after the AO of the searched person is satisfied that the assets/documents do not belong to the searched person. Thus, the date on which the AO of the person other than the one searched assumes the possession of the seized assets would be the relevant date for applying the provisions of Section 153A of the Act. We, therefore, accept the contention that in any view of the matter, assessment for AY 2003-04 and AY 2004-05 were outside the scope of Section 153C of the Act and the AO had no jurisdiction to make an assessment of the Assessee's income for that year. Also see Jasjit Singh [2023 (10) TMI 572 - SUPREME COURT] Thus no hesitation to hold that the Assessments made for A.Y. 2012-13 u/s 144 r.w.s. 142(1), consequent to the satisfaction note recorded on 18.11.2013 (A.Y. 2014-15), ought to have been made u/s 153C of the Income Tax Act, 1961. Since, the provisions of Section 153C have not been invoked and since, the proceedings u/s 153C have not been initiated, the assessment made u/s 144 r.w.s. 142(1) is treated as void ab initio.
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