TMI Blog2023 (9) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... September 2021, recorded that no notice u/s 143(2) of the Act was issued by him. Therefore, there is no question of the provisions of Section 144(1)(c) of the Act being applicable. So far as, the provisions of Section 144(1)(b) of the Act are concerned, as explained hereinabove, there has been no failure to comply with the terms of any notice issued under Section 142(1) of the Act. Therefore, the purported exercise of powers u/s144 of the Act cannot be sustained. Even if one assumes that one of the jurisdictional preconditions set out in Section 144(1)(a), (b) or (c) of the Act is satisfied then, Section 144(1) read with the 1st proviso requires that an AO shall give an assessee an opportunity of being heard as to why the proposed assessment of income to the best of his judgment should not be made. A perusal of the show cause notice shows that this has not been done in the instant case. Further, the provisions of the 2nd proviso to Section 144(1) of the Act cannot apply since petitioner has not failed to comply with any notice under Section 142(1) of the Act. Therefore, the impugned assessment order could, if at all, have been passed under Section 153C read with Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te-off now being reviewed and a different view being taken in these proceedings. Ex-facie, there has been no failure to disclose truly and fully all material facts. Further, no new tangible material having a bearing on petitioner s income in this regard has come to the notice of respondent. Disallowing the very same write-off that had been allowed in the original assessment clearly constitutes a change of opinion and a review of the original decision taken by the assessing officer and cannot fall within the ambit of the phrase the Assessing Officer is satisfied that the documents seized have a bearing on the determination of the total income of petitioner. The provisions of Section 153C of the Act cannot override the jurisdictional safeguards and conditions precedent required to assess or re-assess income such as a review, a change of opinion, a different view being taken without any new tangible material and without any failure on the part of petitioner to disclose fully and truly all material facts. Assuming that respondent has jurisdiction to take proceedings u/s 153C whether assessments can be made in respect of years beyond six years preceding the assessment year relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Petitioner had filed nine Writ Petitions challenging notices dated 19th July 2021 and 14th July 2021 issued under Section 153 of the Income Tax Act, 1961 (the Act) for Assessment Year 2011-2012 (WP No.2501 of 2021), Assessment Year 2012-2013 (WP No. 2432 of 2021), Assessment Year 2013-2014 (WP No. 2411 of 2021), Assessment Year 2014- 2015 (WP No. 2403 of 2021), Assessment Year 2015-2016 (WP No. 2415 of 2021), Assessment Year 2016-2017 (WP No. 2423 of 2021), Assessment Year 2017-2018 (WP No. 2424 of 2021), Assessment Year 2018-2019 (WP No. 2399 of 2021) and Assessment Year 2019-2020 (WP No. 2395 of 2021). Subsequent to filing of these petitions, assessment orders were passed pursuant to the above mentioned notices for the Assessment Years 2011-2012 to 2019-2020. The said assessment orders were also challenged by filing nine separate Writ Petitions mentioned in the cause title for Assessment Years 2011-2012 to 2019-2020 and the grounds of challenge included those raised in the earlier nine petitions. For the reasons set out in the order of this Court passed on 21st July 2023 in above mentioned Writ Petitions, those petitions were disposed as withdrawn. 2. Various independent grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan to Hubtown Limited that had been written off during the year alongwith reasons in support of the claim for deduction thereto when computing its income chargeable to tax. The Assessing Officer passed an assessment order dated 29th June 2019 under Section 143(3) of the Act for Assessment Year 2017-2018, wherein, after specific reference to notice dated 14th June 2019 that was issued under Section 142(1) of the Act, he accepted the claim of petitioner for the write off of loans and advances and assessed petitioner at loss of Rs. 270,23,38,422/-. 6. On or about 30th July 2019 Hubtown Limited was subjected to proceedings under Section 132 of the Act. During the course of proceedings above-mentioned under Section 132 of the Act, the Income Tax Department had come across a ledger account of petitioner in the books of Hubtown Limited. It appears, during the course of proceedings under Section 132 of the Act in the case of Hubtown Limited, certain statements were recorded of employees/officers of Hubtown Limited. Immediately, on the very next day after the search proceedings on Hubtown Limited, i.e., 31st July 2019, Officers of the Income Tax Department conducted a survey under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued a notice to petitioner under Section 153C(1) of the Act. On 15th August 2021, petitioner filed a return of income pursuant to the notice under Section 153C(1) of the Act. On 31st August 2021, in response to notices dated 26th August 2021 and 27th August 2021 issued by respondent no. 1 under Section 142(1) of the Act, petitioner pointed out that pursuant to the notices issued under Section 153C(1) of the Act returns have been filed on the Income Tax Department s portal for Assessment Years 2012-2013 to 2019-2020 and annexed acknowledgment for filing the same. In the said letter, petitioner pointed out that for the Assessment Year 2011-2012, there was some difficulty in filing such a return on the portal and accordingly, requested respondent to consider its original return as a return filed pursuant to notice under Section 153C(1) of the Act. Petitioner also requested respondent no. 1 to provide materials in support of his claim to being clothed with jurisdiction to issue the aforementioned notice including copies of the authorization for search on Hubtown Limited, the satisfaction recorded by the Assessing Officer of Hubtown Limited and petitioner, the date on which, it is all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the total income of petitioner for Assessment Year 2017-2018; (b) an amount of Rs. 12,12,79,672/- being transactions allegedly entered into by petitioner with one Shah Coal Pvt. Ltd. should not be added to the total income of petitioner for Assessment Year 2017-2018. The show cause notice insofar as it relates to the alleged transactions with Shah Coal Pvt. Ltd. are not relevant for the purposes of this petition, which is challenging the jurisdiction of respondent to take proceedings under Section 153C of the Act in the case of petitioner. 11. It is petitioner s case that it is well settled that such claim of having jurisdiction has to be established/defended by respondent no. 1 only with reference to the satisfaction note which does not refer to Shah Coal Pvt. Ltd. Further, according to petitioner, in this regard the show cause notice claims that a notice dated 11th September 2021 under Section 142(1) of the Act was issued to petitioner but not yet replied to. Petitioner says that the said notice dated 11th September 2021 (a Saturday) required petitioner to reply by 13th September 2021 (a Monday), i.e., giving less than one working day time, and was issued along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent no. 1 and has become final as no further steps have been taken by respondent no. 1 in this regard. Petitioner says that the assumption of jurisdiction under Section 153C of the Act and the assessment order dated 28th September 2021 under Section 153C read with Section 144 of the Act cannot be sustained for, inter alia, the following reasons set out hereinafter. 15. Mr. Mistri submitted as under : (a) Section 144 of the Act cannot be invoked to pass a best judgment assessment. This is because an assessment is usually required to be made under Section 143(3) of the Act after considering such evidence the assessee may produce and after hearing the assessee. To invoke Section 144 of the Act, the conditions specified in Section 144 (1) (a), (b) or (c) have to be satisfied. In the instant case, the impugned assessment order shows respondent has erroneously proceeded on the basis that no return has been filed by petitioner pursuant to notice under Section 153C of the Act since no return was available in the ITBA portal. This is factually incorrect as return was filed on 15th August 2021 and an acknowledgment is also on record, Therefore, respondent no. 1 could not have p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety 397 ITR 344 (SC) and (iv) CIT V/s. Kabul Chawla 380 ITR 573 (Delhi). Whether any material found during the course of proceedings under Section 132 of the Act in the case of Hubtown Limited is incriminating or otherwise has to be tested based only on the satisfaction note recorded by the Assessing Officer and nothing else as held in Ananta Landmark Pvt. Ltd. V/s. DCIT, Central Circle 131 taxmann.com 52 (Bom.) and Jainam Investments V/s. ACIT 131 taxmann.com 327 (Bom.). The satisfaction note does not show anything incriminating because it only records that petitioner s account was found in the books of Hubtown Limited. Importantly, it tallied with the account of Hubtown Limited in the books of petitioner. Therefore, there can be nothing incriminating in that. The satisfaction note also says that petitioner had entered into transactions of purchase and sale of shares of Hubtown Limited which has been recorded in petitioner s books of accounts and tax has been paid on the capital gain. Therefore, there can be nothing incriminating in that. Reference has also been made in the satisfaction note to an alleged re-cast of loan from petitioner to Hubtown Limited int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment amounts to or is likely to amount to rupees fifty lakhs or more. In the case at hand, the satisfaction note refers only to the loan account between petitioner and Hubtown Limited and the alleged escapement is only in respect of the part thereof which is written off during the year. Writing-off of a bad debt cannot fall within the ambit of . income, represented in the form of an asset . In any event, this write off has been allowed in the original assessment proceedings and hence, the same cannot be said to be income which has escaped assessment. Secondly, the satisfaction note refers to trading in shares of Hubtown Limited which has been undertaken on the stock exchange, recorded in the books of account of petitioner and the resulting capital gain has been offered for tax and the amount has been taxed in the hands of petitioner. Since the write- off of a bad debt cannot be held to be an asset, clause - (a) of the 4th proviso to Section 153A(1) of the Act would bar any assessment that is proposed to be made for the relevant assessment year/years, i.e., Assessment Year 2011- 2012, 2012-2013 and 2013-2014. 16. Mr. Suresh Kumar submitted as under : (a) The order d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in case of petitioner was made in the light of material/information came to light during the search and certain proceedings and not merely on the basis of change of opinion of the Assessing Officer. The material/information on the basis of which fresh assessment was made has already been discussed in the satisfaction note. Findings/Conclusions : 17. Whether the provisions of Section 144 of the Act could be invoked to pass a best judgment assessment? (a) Under the scheme of the Act, an assessment is usually required to be made under Section 143(3) of the Act, after hearing such evidence as the assessee may produce, after taking into account all relevant material gathered and after hearing the assessee. The provisions of Section 144 of the Act are special and exceptional which can only be invoked if any of the conditions specified in Section 144 (1) (a), (b) or (c) are satisfied. Section 144 of the Act reads as under : Section 144 (1) If any person - (a) fails to make the return required [under sub-section (1) of section 139] and has not made a return or a revised return under sub-section (4) or sub-section (5) [or an updated return under sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 144(1)(a) of the Act. In view of the irrefutable fact that Section 144(1)(a) of the Act cannot apply since petitioner has filed a return, no best judgment assessment under Section 144 of the Act could have been passed; (b) Respondent no. 1 has also, in the impugned order of assessment dated 28th September 2021, recorded that no notice under Section 143(2) of the Act was issued by him. Therefore, there is no question of the provisions of Section 144(1)(c) of the Act being applicable; (c) Insofar as, the provisions of Section 144(1)(b) of the Act are concerned, as explained hereinabove, there has been no failure to comply with the terms of any notice issued under Section 142(1) of the Act. Therefore, the purported exercise of powers under Section 144 of the Act cannot be sustained; (d) Even if one assumes that one of the jurisdictional preconditions set out in Section 144(1)(a), (b) or (c) of the Act is satisfied then, Section 144(1) of the Act read with the 1st proviso requires that an Assessing Officer shall give an assessee an opportunity of being heard as to why the proposed assessment of income to the best of his judgment should not be made. A perusal of the show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the undisclosed income inferred by the authorities, there is no reason, why the authorities should issue notice under Section 143(2). However, if an assessment is to be completed under Section 143(3) read with Section 158-BC, notice under Section 143(2) should be issued within one year from the date of filing of block return. Omission on the part of the assessing authority to issue notice under Section 143(2) cannot be a procedural irregularity and the same is not curable and, therefore, the requirement of notice under Section 143(2) cannot be dispensed with. The other important feature that requires to be noticed is that the Section 158 BC(b) specifically refers to some of the provisions of the Act which requires to be followed by the assessing officer while completing the block assessments under Chapter XIV-B of the Act. This legislation is by incorporation. This Section even speaks of sub- sections which are to be followed by the assessing officer. Had the intention of the legislature was to exclude the provisions of Chapter XIV of the Act, the legislature would have or could have indicated that also. A reading of the provision would clearly indicate, in our opinion, if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g more the expression `as far as possible' will mean that the manner provided in the code for attachment or sale of property in execution of a decree shall be applicable in its entirety except such provision therein which may not be practicable to be applied. 16. The case of the revenue is that the expression `so far as may be apply' indicates that it is not expected to follow the provisions of Section 142, sub-sections 2 and 3 of Section 143 strictly for the purpose of Block assessments. We do not agree with the submissions of the learned counsel for the revenue, since we do not see any reason to restrict the scope and meaning of the expression `so far as may be apply'. In our view, where the assessing officer in repudiation of the return filed under Section 158 BC(a) proceeds to make an enquiry, he has necessarily to follow the provisions of Section 142, sub-sections (2) and (3) of Section 143. In the instant case, paragraph 4 of the impugned assessment order records that no notice under Section 143(2) of the Act has been issued. The Revenue has erroneously proceeded on the basis that the said notices are not required since no return of income had been fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of power under section 119 of the income-tax Act, 1961 (hereinafter referred to as the Act ), has decided that no communication shall be issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry. investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person, on or after the 1st day of October, 2019 unless a computer- generated Document Identification Number (DIN) has been allotted and is duly quoted in the body of such communication. 3. In exceptional circumstances such as,- (i) when there are technical difficulties in generating/allotting/ quoting the DIN and issuance of communication electronically; or (ii) when communication regarding enquiry, verification etc. is required to be issued by an income-tax authority, who is outside the office, for discharging his official duties: or (iii) when due to delay in PAN migration. PAN is lying with non-jurisdictional Assessing Officer; or (iv) when PAN of assessee is not available and where a proceeding under the Act (other than verification under section 131 or section 133 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation is to be issued without a DIN, it can be done only after recording reasons in writing in the file and with the prior written approval of the Chief Commissioner/Director General of Income Tax. Further, paragraph 3 requires that if such exceptional circumstances are claimed, the orders/communication issued without a DIN must state this fact in a specific format set out in paragraph 3 of the Circular. Paragraph 4 of the Circular provides that any order/ communication which is not in conformity with paragraphs 2 and 3 of the Circular shall be treated as invalid and shall be deemed to have never been issued. The contents of the Circular have been re-iterated in a Press Release dated 14th August 2019; (b) It is indisputable that the impugned assessment order dated 28th September 2021 does not bear a DIN and further that the said order issued without a DIN does not bear the required format set out in paragraph 3 of the Circular and, therefore, the impugned assessment orders for Assessment Year 2011-2012 to 2019-2020 ought to be treated as invalid and deemed never to have been issued. We find support for this view in Brandix Mauritius Holdings Ltd. (Supra) where the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DIN, but yet the requirements of paragraph 3 of the Circular will still remain contravened and consequently, the order dated 28th September 2021 ought to be treated as invalid and never issued; (d) The said Circular also applies to the satisfaction note dated 13th July 2021 issued by respondent no. 1. The satisfaction note will fall within the scope of paragraph 2 of the Circular as a communication of the specified type issued to any person. In the case of the satisfaction note no regularization dated 13th October 2021 has been issued; (e) In view of the binding nature of Circular issued under Section 119 of the Act, and the peculiar facts and circumstances of the case, the consequences of contravention of the Circular set out above, therefore, ought to be given full effect to. The object of the said Circular is clear and laudatory and intended to ensure that proper trail of all assessment and other orders are maintained and further that any deviation therefrom can only be undertaken after prior written approval of the higher authorities under the Act. Therefore, the satisfaction note dated 13th July 2021 and the impugned order of assessment dated 28th September 2021 ought to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso), specify the class or classes of cases in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made [and for the relevant assessment year or years] : [Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless - (a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the relevant assessment years; (b) the income referred to in clause (a) or part thereof has escaped assessment for such year or years; and (c) the search under section 132 is initiated or requisition under section 132A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having jurisdiction over such other person] and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person [for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and] for the relevant assessment year or years referred to in sub-section (1) of section 153A]:] [Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to [subsection (1) of] section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person:] [Provided further that the Central Government may by rules made by it and published in the Official ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of unabated/completed assessments. Paragraphs 5 to 7.1, 8 and 11 to 14 in Abhisar Buildwell Pvt. Ltd. (Supra) read as under : 5. That the question which is posed for consideration in the present set of appeals is, as to whether in respect of completed assessments/unabated assessments, whether the jurisdiction of AO to make assessment is confined to incriminating material found during the course of search under Section 132 or requisition under Section 132A or not, i.e., whether any addition can be made by the AO in absence of any incriminating material found during the course of search under section 132 or requisition under Section 132 A of the Act, 1961 or not. 6. It is the case on behalf of the Revenue that once upon the search under Section 132 or requisition under Section 132A, the assessment has to be done under Section 153A of the Act, 1961 and the AO thereafter has the jurisdiction to pass assessment orders and to assess the total income taking into consideration other material, though no incriminating material is found during the search even in respect of completed/unabated assessments. 7. At the outset, it is required to be noted that as such v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word assess in Section 153 A is relatable to abated proceedings (i.e., those pending on the date of search) and the word reassess to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of unabated/completed assessment, the AO would have the jurisdiction to assess or reassess the total income taking into consideration the incriminating material collected during the search and other material which would include income declared in the returns, if any, furnished by the assessee as well as the undisclosed income. However, in case during the search no incriminating material is found, in case of completed/unabated assessment, the only remedy available to the Revenue would be to initiate the reassessment proceedings under sections 147/48 of the Act, subject to fulfilment of the conditions mentioned in sections 147/148, as in such a situation, the Revenue cannot be left with no remedy. Therefore, even in case of block assessment under section 153A and in case of unabated/completed assessment and in case no incriminating material is found during the search, the power of the Revenue to have the reassessment under sections 147/148 of the Act has to be saved, otherwise the Revenue would be left without remedy. 12. If the submission on behalf of the Revenue that in case of search even where no incriminating material is found during the course of search, even in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the returns; and iv) in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act, 1961. However, the completed/unabated assessments can be re-opened by the AO in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned under sections 147/148 of the Act and those powers are saved. The question involved in the present set of appeals and review petition is answered accordingly in terms of the above and the appeals and review petition preferred by the Revenue are hereby dismissed. No costs. (emphasis supplied) Therefore, no addition can be made by the Assessing Officer in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act; (b) In Continental Warehousing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the search, i.e., 31st July 2019. (ii) petitioner had entered into transactions of purchase and sale of shares of Hubtown Limited which have been recorded in petitioner s books of accounts and tax paid on the resulting gain. (iii) reference is made to an alleged re-cast of loan from petitioner to Hubtown Limited into an advance against property during year ended 31st March 2019 and the same is not relevant to Assessment Year 2017-2018. (f) Accordingly, it is irrefutable that no incriminating material relating to petitioner has been found during proceedings under Section 132 of the Act in the case of Hubtown Limited; (g) The assessment of petitioner has clearly not abated in terms of the 2nd Proviso to Section 153A(1) of the Act. Although the 1st proviso to Section 153C(1) of the Act says provided that in case of such other person, the reference to the date of initiation of the search under Section 132 or making of requisition under Section 132A in the second proviso to subsection (1) of Section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r person is the same. Where the Assessing Officer of the searched person is different from the Assessing Officer of the other person, there shall be a satisfaction note by the Assessing Officer of the searched person and as observed hereinabove that thereafter the Assessing Officer of the searched person is required to transmit the documents so seized to the Assessing Officer of the other person. The Assessing Officer of the searched person simultaneously while transmitting the documents shall forward his satisfaction note to the Assessing Officer of the other person and is also required to make a note in the file of a searched person that he has done so. However, as rightly observed and held by the Delhi High Court in the case of Ganpati Fincap (supra), the same is for the administrative convenience and the failure by the Assessing Officer of the searched person, after preparing and dispatching the satisfaction note and the documents to the Assessing Officer of the other person, to make a note in the file of a searched person, will not vitiate the entire proceedings under Section 153C of the Act against the other person. At the same time, the satisfaction note by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aph 4.9 of the affidavit in reply filed through one Kartik Saresa, DCIT Central Circle 2(4), Mumbai, affirmed on 24th March 2022, it is stated : 4.9. With reference to the contents of Para No.4(g) of the Writ Petition, I say that under this para, the petitioner has claimed that the assessment order was made beyond the time limit prescribed in section 153B of the Act. In this regard, reference is invited to section 153B, the relevant proviso to the same is reproduced hereunder - Provided also that in the case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed during the financial year commencing on or after the 1st day of April, 2019,- (i) the provisions of clause (a) or clause (b) of this sub- section shall have effect, as if for the words twenty-one months , the words twelve months had been substituted; (ii) the period of limitation for making the assessment or reassessment in case of other person referred to in section 153C, shall be the period of twelve months from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08.2015 14.12.2015 09.06.2017 Section 148 seeking to re-open assessment 19.04.2021 21.02.2014 31.03.2014 Order in Writ Petition quashing the section 148 notice. 11.04.2022 11.04.2022 11.04.2022 20. Whether it can be said that any income chargeable to tax has escaped assessment in respect of the issues set out in the satisfaction note? (a) Insofar as Assessment Year 2017-2018 is concerned, respondent no. 1, in the satisfaction note, has recorded that he seeks to re-assess petitioner s income in respect of two items (i) the loan account recording the loan granted by petitioner to Hubtown Limited and (ii) transactions of purchase and sale of shares of Hubtown Limited by petitioner; (b) During the course of the original assessment proceedings, a specific query was raised by respondent as to the allowability of write off of part of the loan grante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year relevant to the previous year in which the search was conducted and for the relevant assessment year or years. Explanation 1 below Section 153A of the Act defines the expression relevant assessment years as .shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made . In order to make an assessment for assessment year which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year, in which the search was conducted, the 4th proviso to Section 153(A)(1) of the Act sets out certain further conditions which are required to be fulfilled before a notice can be issued for the relevant assessment years. Clause - (a) of the 4th proviso requires that the Assessing Officer must have in his possession books, documents or evidence which reveal that income represented in the form of an asset which has escaped assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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