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TMI Blog2024 (2) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... cross objections the assessee contended that initiation of proceedings u/s 153C for AY 2008-09 on 02.02.2016 on which date the Ld. AO had recorded his satisfaction for taking up the case of the assessee u/s 153C of the Act and issuing notice u/s 153C for making an assessment was bad in law. 3. Ld. Counsel for the assessee referring to page 3 of the Paper Book submits that the Assessing Officer recorded satisfaction note on 02.02.2016 for making an assessment u/s 153C r.w.s. 153A of the Act and placing reliance on the decision of the Jurisdictional High Court in the case of CIT Vs. RRJ Securities Limited [380 ITR 612] and the decision of the coordinate bench of Delhi Tribunal in the case of CIT Vs. M/s Ankit Nivesh & Management Pvt. Limited in ITA No.4051 & 4052/Del/2017 dated 18.06.2021 submitted that the Assessing Officer could have only made assessments for six preceding assessment years from the date of handing over of the documents or the date of recording of satisfaction. The Ld. Counsel for the assessee submits that in its case since recording of satisfaction was made on 02.02.2016 and in the absence of recording of any date of handing over of the documents for making asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO of the Assessee is deemed to be the date of search. In the present case in absence of any specific date of handing over of material, the date of recording satisfaction i.e., 19.09.2014 is to be treated as the date of handing over of material and therefore the six assessment years preceding the year of the search, for which the assessment was proposed to be reopened, should be A.Y. 2009-10 to A.Y. 2014-15. 12. Consequently the notice u/s 153C(1) could have been issued for Assessment Years 2009-10 to 2014-15. Prior to the amendment brought by the Finance Act, 2017 the date on which the Assessing Officer 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. 13. In the following judgments, the Hon'ble Delhi High Court have clearly held that the provisions of six years would have to be counted from the year in which satisfaction note is prepared. a. Hon'ble High Court of Delhi in the case of RRI Securities (380 ITR 612) has held that - dated 30.10.2015 Held: In terms of proviso to Section 153C of the Act, a reference to the date of the search under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. b. Hon'ble High Court of Delhi in the case of ARN Infrastructure India Ltd. (81 taxmann.com 260) has held that: Held: The decision in RRJ Securities Ltd. (supra) is categorical that under section 153C of the Act, the period of six years as regards the person other than the searched person would commence only from the year in which the satisfaction not is prepared by the AO of the searched person and a notice is issued pursuant thereto. The date of the Satisfaction Note is 21st July, 2014 and the notice under section 153C of the Act was issued on 23rd July 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handing over the documents or the dated of recording of the satisfaction. Admittedly, the six preceding assessment years in the case of the assessee is from Assessment Year 2009-10 and ending on 2014-2015. Accordingly, we hold that Ld. CIT(A) was correct in law that no assessment u/s153C was made in respect of Assessment Year 2007-08 and is barred by limitation. 15. Similarly in Assessment Year 2008-09 also we need the same fate which is also beyond the limitation period of six years as stated above. Accordingly, the order of the Ld. CIT(A) is upheld and the Revenue's Appeal is dismissed." 6. The ratio of this decision squarely applies to the facts of the assessee's case. In the case on hand also the date of handing over of the materials was not mentioned in the satisfaction note and, therefore, in the absence of mentioning the date of handing over of the materials the date of satisfaction note shall be reckoned as the date of handing over of the materials and consequently the time limit of calculating the six years has to be calculated from this date i.e. 02.02.2016. In this scenario the assessment year 2008-09 is beyond the period of six assessment years and, therefore, res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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