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2018 (9) TMI 886

Validity of proceedings u/s 153C - period of limitation - completion of proceedings against the assessee, who is ‘other person’ than searched person - Held that:- As relying on RRJ Securities Ltd. case [2015 (11) TMI 19 - DELHI HIGH COURT] we hold that assessment proceedings initiated for assessment years 1999-2000 to 2001-02 are beyond the period of available under the proviso to section 153C read with proviso to section 153A of the Act and hence, the Assessing Officer had no jurisdiction to ta .....

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issue raised by the assessee by way of ground of appeal No.4, which reads as under:- Assessment is Time Barred 4. failed to appreciate that six years prior to the assessment year in which documents were received by the jurisdictional Assessing Officer of the Appellant, which can be reassessed to tax, start from AY 2002-03 and hence reassessment made for AY 1999-00 is time barred; 4. Briefly, in the facts of the case, the assessee had originally filed return of income on 31.08.2009. Search and se .....

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.e. 15.06.2007. The assessee also challenged the assessment proceedings for non-issue of notice under section 143(2) of the Act. However, the CIT(A) dismissed both the contentions of assessee and decided the issue on merits. 6. The assessee is in appeal before us both on jurisdictional issue and issue raised on merits. We are proceeding to decide the jurisdictional issue first. 7. The learned Authorized Representative for the assessee strongly objected to the assessment proceedings conducted for .....

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y money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned, belongs to a person other than the person referred in section 153A of the Act i.e. the person searched, then books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person. The proviso thereunder reads as under:- 153C(1)…….. Provided that in case of such other person, the re .....

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the year of receipt of information by the Assessing Officer, Incharge of such other person. In the case of assessee, the year of receipt of information is assessment year 2008-09 and in case the period of six years is counted from that year, then it would be up to assessment year 2002-03; whereas the assessee is in appeal before us for the assessment completed relating to assessment years 1999-2000 to 2001-02. The learned Authorized Representative for the assessee has placed heavy reliance on t .....

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n over such other person. 12. Thereafter, elaborating on the case of assessee, it was observed as under:- 5. In terms of Section 153 A(1) (b) of the Act, the AO shall assess or re- assess the total income of six AYs immediately preceding the AY relevant to the previous year in which the search was conducted. The second proviso to sub-section (1) of Section 153 A of the Act, states that assessment or reassessment relating to any AY falling within the period of six AYs referred to in the said sub- .....

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other person. 7. The case of the Assessee, on the other hand, is that since in the case of the 'other person' the AO issues notice only subsequent to the notices issued under Section 153 A to the searched person, the starting point for computation of the block period would be the date on which, based on the seized documents, notice is issued to the 'other person' under Section 153 C of the Act. Thus in the present case, the six year period prior to AY 2012-13 i.e. AY 2007-08 to A .....

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requiring the noticee to furnish returns of income in respect of six assessment years relevant to the six previous years preceding the previous year in which the search is conducted. As discussed hereinbefore, by virtue of second proviso to Section 153A, the assessment/reassessment pending on the date of initiation of search abate. In the context of proceedings under Section 153C of the Act, the reference to the date of initiation of the search in the second proviso to Section 153A has to be co .....

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o the Assessee (being the person other than the one searched) to the AO having jurisdiction to assess the said Assessee. Further proceedings, by virtue of Section 153C(1) of the Act, would have to be in accordance with Section 153A of the Act and the reference to the date of search would have to be construed as the reference to the date of recording of satisfaction. It would follow that the six assessment years for which assessments/reassessments could be made under Section 153C of the Act would .....

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Act stated for the first time for both the searched person and other person, the period of re-assessment would be six years preceding the year of search. It was reiterated that the said amendment was prospective and the appeal of Revenue in that case was dismissed. 14. The issue arising in the present appeal before us is squarely covered by the ratio laid down by the Hon ble High Court of Delhi (supra) and following the same parity of reasoning, we hold that assessment proceedings initiated for .....

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