9911796707
TMI Blog2024 (3) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... .P.No.5203 of 2020, an assessment order relating to assessment year 2012-2013 is under challenge. 2. The petitioner is a partnership firm represented by Mr.T.Parvadham. The firm was engaged in the business of developing real estate. In respect of both the above mentioned assessment years, the petitioner had filed its returns of income. Pursuant to a search conducted at the premises of Mr.K.S.Thirumalaivasan, a partner of the petitioner firm, on 11.10.2012, documents indicating transactions between the petitioner firm and third parties were found. Much later, satisfaction under Section 153C of the Income Tax Act, 1961 (the I-T Act) was recorded in respect of the petitioner on 27.03.2019. A notice under Section 153C was issued thereafter. Ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n note by the assessing officer. After further submitting that Section 153BD is in pari materia with Section 153C, he submitted that the Supreme Court held that the satisfaction note may be prepared at any one of the three stages specified therein, including after assessment proceedings are completed against the searched person. Since satisfaction was recorded in the present case on 27.03.2019, which is much earlier than the date of issuance of assessment orders against the searched person on 20.07.2021, learned counsel contends that proceedings are not barred by limitation. 5. These matters hinge on the interpretation of Section 153C(1) read with Section 153B(1). The said provisions are, in relevant part, as under: "153B (1) Notwithstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer is satisfied that,- (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her person and that Assessing Officer shall proceed under Section 158C against such other person and the provisions of this Chapter shall apply accordingly." From the above extract, it follows that the provisions are clearly not identical. More importantly, in paragraph 44 of Calcutta Knitwears, the Supreme Court was not directly dealing with the date from which the six year period should be computed. Instead, the Supreme Court indicated the three stages at which the satisfaction note could be prepared. By contrast, in the judgment in Jasjit Singh, the Supreme Court interpreted Sections 153A and 153C of the Income Tax Act and recorded the following conclusions in paragraphs 9 and 10 thereof: "9. It is evident on a plain interpretation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be attributed to Parliament. On the other hand, a plain reading of Section 153-C supports the interpretation which this Court adopts." 7. In light of the above conclusions of the Hon'ble Supreme Court, the question as to whether these proceedings are barred by limitation should be addressed with reference to the judgment in Jasjit Singh. Effectively, the Supreme Court held that the person, other than the searched person, would be gravely prejudiced if the papers were to be handed over to the jurisdictional assessing officer of such person after about four years. In the case at hand, the search in the premises of Mr. Thirumalaivasan was carried out on 11.10.2012, whereas the satisfaction note was recorded only on 27.03.2019. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
