TMI Blog2020 (4) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for assessment year 2008-09 should have been made under Section 153C of the Act and not under Section 143(3) of the Act as has been done. The Hon ble Delhi High Court in the case of Pr. CIT Vs. Sarwar Agency Pvt. Ltd. [ 2017 (8) TMI 733 - DELHI HIGH COURT] clearly covers the issue in favour of the assessee. Amendment made in 153C of the Act by the Finance Act applies from 1st April, 1970 which covers the issue that hence-forth the period of the search pressing as well as the other person would be the same sixth assessment years immediately proceeding the year of search. However, the above amendment does not apply to the assessment year 2008-09 as the impugned assessment order has been passed under Section 143(3) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that it belonged to the assessee company and, therefore, proceedings under Section 153C of the Income Tax Act, 1961 (the Act) were initiated on 16.07.2009 for assessment years 2002-03 to 2007-08. For this assessment year, assessee filed its return of income on 25.09.2008 showing income of ₹ 25,35,840/-. The learned Assessing Officer noted that assessee is one of the group company in which land has been purchased in Faridabad. It was noted that only part payment is made at the time of execution of the sale deed and the balance consideration was paid through post-dated cheques which were encashed after several months from the date of sale deed. Therefore, the learned Assessing Officer made the addition of ₹ 7,39,727/- on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is passed under Section 143(3) of the Act. Therefore, it is invalid. He referred to several identical precedents for this proposition. He, therefore, submitted that additional ground goes to the root of the matter and challenges jurisdiction. 2.3 He further stated that the facts are already on record for deciding the additional ground and is purely a legal ground. He also referred his application in detail praying for admission of the above ground. 2.4 The learned Departmental Representative vehemently objected to the additional ground and submitted that same cannot be admitted at this stage and the assessee has not raised this ground before the lower authorities. 3. We have carefully considered the contentions of the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 30.10.2015 (380 ITR 612). He further referred to para No. 24 of that order wherein it has been held that in case of person other than search this assessment year for which assessment / re-assessment could be made under Section 153C of the Act would have to be construed with reference to the date of handing over of the assessment / documents sent to the Assessing Officer of the assessee. As the date of satisfaction is 16.07.2009 he submitted that the date of search is 16.07.2009 and the impugned assessment order should have been passed under Section 153C of the Act. He further referred to the decision of the Hon ble Delhi High Court in Pr. CIT Vs. Sarwar Agency Pvt. Ltd. In ITA. 422/2017 Dated 17.08.2017. He, therefore, submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any assessment year falling within the period of 6 assessment year pending on the date of initiation of the search under Section 132 would abate. Apparently in this case the date of search is 16.07.2009 and this year s period would be assessment year 2004-05 to assessment year 2009-10. Therefore, it is apparent that the assessee for assessment year 2008-09 should have been made under Section 153C of the Act and not under Section 143(3) of the Act as has been done. The Hon ble Delhi High Court in the case of Pr. CIT Vs. Sarwar Agency Pvt. Ltd. (supra) clearly covers the issue in favour of the assessee. Further the amendment made in 153C of the Act by the Finance Act applies from 1st April, 1970 which covers the issue that hence-forth the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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